L&T Finance Shares Drop 4% After Q4 FY25 Results

L&T Finance shares fell over 4% on April 28 following the release of its Q4 FY25 results. The company's performance showed mixed results, with decreased disbursements from key segments like rural business finance, two-wheeler, and housing loans. However, the company's overall net profit and revenue continued to show positive growth.

Key Highlights from Q4 FY25 Results

• Net Profit: L&T Finance reported a consolidated net profit of ₹636 crore for Q4 FY25, marking a 15% year-on-year (YoY) growth.
• Revenue: The company's revenue from operations surged nearly 10% YoY, reaching ₹4,023 crore in the March quarter.
• Retail Disbursements: Despite the profit growth, retail disbursements saw a slight drop of 1% YoY and 2% quarter-on-quarter (QoQ), totaling ₹14,899 crore for Q4 FY25.
• Rural Business Finance: There was an 11% YoY fall in disbursements to ₹5,114 crore in the rural business segment. This was attributed to a "risk-calibrated disbursement strategy."
• Loan Segments:
  • Two-wheeler loans dropped by 26% YoY.
  • Housing loans decreased by 7% YoY.
  • Personal finance, however, saw impressive growth, with a 98% YoY rise.

Dividend Announcement

L&T Finance also declared a final dividend of ₹2.75 per equity share, the highest the company has announced to date.

CEO's Statement

Sudipta Roy, CEO and Managing Director, remarked on the company's resilience amid a challenging financial year. He emphasized the importance of maintaining strong asset quality and efficient collections, marking FY25 as a key year for laying the foundation for sustainable growth in the future.

Stock Performance

Despite the dip in share price on April 28, L&T Finance's stock has seen a solid performance in recent months:

• 1-month Gain: Over 8% rise.
• 6-month Gain: Nearly 17% increase.
• YTD Gain: The stock has surged over 20% in 2025.

Summary

L&T Finance's mixed Q4 FY25 results show growth and challenges across various segments. While some areas, such as rural business finance and two-wheeler loans, struggled, the company's net profit and revenue continue to grow. With a substantial dividend payout and impressive performance over the last few months, L&T Finance remains a important player in the financial services sector.