The shares of one of the leading Non-Banking Financial Companies gained up to 2.2 percent after CRISIL upgraded a crisil rating from CRISILAAA to CRISILA1+ for its outstanding debt facilities of LTFH and debt facilities of LTF of LTICL.
With a market capitalization of Rs 40,112.20 Crores, The shares of L&T Finance Holdings Ltd were trading at Rs 161.25 a share, an increase of 1.22 percent from the previous closing price of Rs 159.30 a share.
According to the company filing, L&T Finance Holding Ltd received a crisil rating of CRISIL A1+ for its outstanding debt facilities and CRISIL A1+ for debt facilities of L&T Finance Ltd and L&T Infra Credit Ltd, which have now been transferred to the merged entity L&T Finance Holding Ltd.
LTFH has illustrated robust expansion and enhanced its equity return in the past few fiscal years. The parent company of L&T has designated the LTFH as a primary focus area as a result of the company’s efforts to develop a robust services portfolio that includes financial, technology, and IT services.
In addition, the parent has invested about Rs 5,700 crore and supports the entity financially. It is anticipated that internal cash accrual and parent capital support will maintain sufficient capitalization, and steady-state gearing will not surpass 7.5 times.
Looking into the company’s performance revenue increased by 2.42 percent from Rs 3,138 Crore in Q2FY23 to Rs 3,214 Crore in Q2FY24. During the same period, net profit increased by 46 percent from Rs 406 crore to Rs 594 Crore.
The parent company’s strong support, which is indicated by its clear intention to maintain strategic connections and management oversight, is also taken into account by the ratings. LTFH conducts business in a way that rapidly complies with stakeholder obligations, maintains majority shareholding in LTFH, and provides growth and risk capital as needed.
L&T Finance Holdings Ltd provides a wide range of financial services and products, including microloans, consumer loans, home loans, financing for farm equipment, and financing for two-wheelers.
Written By:- Abhishek Singh
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