L&T Finance is among the top five losers on the BSE currently, down over 12% at Rs.112.20, hitting a new 52-week low.
L&T Finance posted a good set of earnings for Q2FY18 and yet it went down to a new low. The good numbers were shrouded under the news that the company has Rs.1,800 crore exposure to some projects of Infrastructure Lending and Financial Services (IL&FS).
The company, in its Investor Presentation stated that its exposure to IL&FS entities is at Rs.1800 crore. It also has exposure to defaulter real estate firm Supertech is at Rs 800 crore.
The company has tried to soothe nerves saying that it has said that for IL&FS, “the cash flows for all the projects are secured though water tight escrow accounts with LTFH having its lien. All the projects have Debt Service Reserve Account and other reserves amounting to Rs. 450 crore and all projects are self-sustaining without any further equity infusion required from the promoter.”
On Supertech, the company has said, “Project ahead on sales, collections and repayment, while being on par against construction progress. Rs.42 crore pre-payment already received through escrow mechanism.”
In terms of its earnings, the company in Q2FY19, its net profit rose 66% (YoY) at Rs.560 crore and NII was at Rs.3246 crore, up 36%. Average assets under management in the investment management business increased 40% to Rs.73,754 crore.