L&T Finance posted a disappointing set of earnings for QFY21, with consolidated net profit halving to Rs.288 crore, down 51% (YoY) though sequentially, it was up 3%.The fall in the bottomline was on a 3% drop in total income at Rs.3622 crore and 9% rise in total expenses.
Average assets under management (AUM) declined to Rs 68,976 crore from Rs 71,587 crore (YoY).
It continued to carry additional provisions (over and above PCR and standard asset provisions) of Rs 1,739 Cr (1.90%) on standard book as of Q3FY21.
As of December 2020, the company maintained Rs. 16,442 crore of liquidity including assets in the form of cash, FDs and other liquid investments of Rs. 7,709 crore.
Our Editor Mr.SP Tulsian said that the numbers were flat to dull in view of the higher provisions. He recommended moving to HDFC Ltd.
The market was not too happy with these numbers. The stock, which had closed yesterday at Rs.105.10, it opened lower at Rs.102.90 an went down to an intraday low at Rs.98.65 and continues to trade around the same level.