Slides
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L&T FINANCEInvestor Presentation Q4FY25 & FY25
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L&T FINANCE 2 Disclaimer L&T Finance Limited (formerly known as L&T Finance Holdings Limited) (the “Company”) offers a range of financial products and services under the L&T Finance (LTF) brand. The information provided in this presentation by the Company is for information purposes only. This presentation or any information herein shall not be used, reproduced, copied, photocopied, duplicated or otherwise reproduced in any form or by any means, or re-circulated, redistributed, passed on, published in any media, website or otherwise disseminated, to any other person, in any form or manner. This presentation does not constitute an offer or invitation or inducement to purchase or sell or subscribe to, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment thereof. This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement or an offer document to purchase or sell securities under the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Securities and Exchange Board of India (Issue and Listing of Non-convertible Securities) Regulations, 2021 or any other applicable law, as amended from time to time. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. No representation, warranty, guarantee or undertaking, express or implied, is or will be made or any assurance given as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of any information, estimates, projections or opinions contained herein. Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. The statements contained in this presentation speak only as at the date as of which they are made, and the Company expressly disclaims any obligation or undertaking to supplement, amend or disseminate any updates or revisions to any statements contained herein to reflect any change in events, conditions or circumstances on which any such statements are based. Neither the Company nor any of its affiliates, its board of directors, its management, advisers or representatives, or any other persons that may participate in any offering of securities of the Company, shall have any responsibility or liability whatsoever (in negligence or otherwise) for any loss (direct or indirect) howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such revision or changes. Certain statements made in this presentation may be “forward looking statements” for purposes of laws and regulations of India and other than India. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition, general business plans and strategy, the industry in which the Company operates and the general, business, competitive and regulatory environment of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions, including future changes or developments in the Company’s business, its competitive environment, information technology and political, economic, legal, regulatory, environmental and social conditions in India, which the Company believes to be reasonable in light of its operating experience in recent years. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company. The distribution of this presentation in certain jurisdictions may be restricted by law and persons in whose possession this presentation comes should inform themselves about, and observe, any such restrictions. The financial figures, information, data and ratios (audited and unaudited) other than consolidated PAT, provided in this presentation are management representation based on internal financial information system of the Company. These financial figures are based on restatement of certain line items in the consolidated financial statements of the Company and describe the manner in which the management of the Company monitors the financial performance of the Company. There is a possibility that these financial results for the current and previous periods may require adjustments due to changes in financial reporting requirements arising from new standards, modifications to the existing standards, guidelines issued by the Ministry of Corporate Affairs and RBI. By accessing this presentation, you accept this disclaimer and that any claims arising out of or in connection with this presentation shall be governed by the laws of India and the courts in Mumbai, India shall have exclusive jurisdiction over the same. Disclaimer clause of RBI: The Company has a valid certificate of registration dated April 29, 2024 issued by the RBI under section 45 IA of the RBI Act (pursuant to the change in name from LTFH to LTF). However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the Company, or for the correctness of any of the statements or representations made or opinions expressed by the Company, and for repayment of deposits/ discharge of liabilities by the Company.
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L&T FINANCE Lakshya 2026 Goals Convergence At Consolidated Level 3
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L&T FINANCE 4 Lakshya was launched in April 2022. FY22 is the year before the launch of Lakshya strategy Sustaining trajectory in line with Lakshya 2026 goals even during cycles RETAIL GROWTHRETAILISATION CONSOL ROA CONSOL ASSET QUALITY >25% CAGR>95% 2.8% - 3% GS3 3.29% NS3 0.97%Q4: 97% Q4: 19% Q4: 2.22% | FY: 2.44% GS3 <3% NS3 <1% GS3 4.08% NS3 1.98%Q4: 51% Q4: 10% Q4: Q4: 1.33% | FY: 1.04% FY22 FY25 (At launch) Moving towards convergence at Consolidated level FY26 Q4: CAGR (Q4FY22 - Q4FY25): 28%
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L&T FINANCE 5 *Q3FY25 & Q4FY25 credit cost is after utilization of macro-prudential provision of ₹ 100 Cr & ₹ 300 Cr respectively in Rural Business Finance RoA trajectory over Lakshya 2026 journey Endeavouring to drive consistency and predictability through cycles Consolidated LTF Q4FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Retailisation 51% 54% 58% 64% 75% 82% 88% 91% 94% 95% 96% 97% 97% NIMs 6.58% 6.54% 6.90% 7.41% 7.63% 8.06% 8.62% 8.97% 9.14% 9.31% 8.94% 8.50% 8.15% Fees 1.59% 1.69% 1.53% 1.39% 1.58% 1.58% 2.22% 1.95% 2.11% 1.77% 1.92% 1.83% 2.01% NIMs + Fees 8.17% 8.23% 8.43% 8.80% 9.21% 9.64% 10.84% 10.93% 11.25% 11.08% 10.86% 10.33% 10.15% Opex 2.93% 2.97% 3.19% 3.37% 3.58% 3.81% 4.29% 4.38% 4.69% 4.45% 4.17% 4.41% 4.22% Credit cost 3.00% 3.63% 2.54% 2.67% 2.24% 2.33% 2.58% 2.52% 2.39% 2.37% 2.59% 2.49%* 2.54%* Opex + Credit cost 5.93% 6.60% 5.73% 6.04% 5.82% 6.14% 6.86% 6.89% 7.08% 6.83% 6.77% 6.90% 6.76% RoA 1.33% 1.02% 1.55% 1.66% 1.90% 2.13% 2.42% 2.53% 2.19% 2.68% 2.60% 2.27% 2.22% PAT (₹ in Cr) 342 262 406 454 501 531 595 640 554 686 696 626 636 Retail Book (₹ in Cr) 45,084 47,794 52,040 57,000 61,053 64,274 69,417 74,759 80,037 84,444 88,975 92,224 95,180 Consol Book (₹ in Cr) 88,341 88,078 90,098 88,426 80,893 78,566 78,734 81,780 85,565 88,717 93,015 95,120 97,762 PCR 53% 55% 55% 60% 69% 71% 76% 75% 76% 75% 71% 71% 71% NS3% 1.98% 1.87% 1.85% 1.72% 1.51% 1.19% 0.82% 0.81% 0.79% 0.79% 0.96% 0.97% 0.97% CRAR 23% 23% 23% 23% 25% 26% 25% 25% 23% 22% 22% 22% 22% Maintained an average of ~2.60% credit cost over the past 13 quarters thereby displaying predictability across cycles
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L&T FINANCE Executive Summary Q4FY25 & FY25 6
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L&T FINANCE 7 Executive Summary – Q4FY25 (1/5) Financial Performance Overview Retail disbursements for Q4FY25 at ₹ 14,899 Cr vs. ₹ 15,044 Cr in the previous year • Secured assets disbursement growth led by Farmer Finance at 15% YoY • Risk-calibrated disbursement strategy in Rural Business Finance, resulting in reduced disbursements for the quarter at ₹ 5,114 Cr, down 11% YoY NIMs+Fees for Q4FY25 at 10.15% vs 10.33% for Q3FY25 primarily on account of book mix change Consol. credit cost for Q4FY25 at 2.54% (3.80% before macro utilisation) after utilising macro-prudential provisions to the extent of ₹ 300 Cr vs. 2.49% (2.91% before macro utilisation) for Q3FY25 PATfor Q4FY25 at ₹ 636 Cr, growth of 15% YoY; RoA for Q4FY25 at 2.22%
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L&T FINANCE 8 Executive Summary – FY25 (2/5) Financial Performance Overview Achieved highest ever annual RoA of 2.44% & highest ever annual PATof ₹ 2,644 Cr growth of14% YoY Retailisation at 97% of overall book • Retail book at ₹ 95,180 Cr, growth of 19% YoY | Consol book at ₹ 97,762 Cr, growth of 14% YoY Retail disbursements for FY25 at ₹ 60,040 Cr, increase of 11% YoY • Secured assets disbursement growth led by Home Loans & LAP at 27% YoY & Farmer Finance at 16% YoY • Risk-calibrated disbursement strategy in Rural Business Finance, resulting in reduced disbursements for the year at ₹ 20,921 Cr, down 3% YoY in FY25 as compared to 27% growth YoY in FY24 NIMs+Fees for FY25 at 10.59% vs 10.67% for FY24 on account of book mix change. This is in line with our objective of building a portfolio with an optimal risk-return paradigm. This portfolio rebalancing is expected to result in reduced opex & structural reduction in credit cost going forward Consol. credit cost for FY25 at 2.50% (2.93% before macro utilisation) after utilising macro-prudential provisions to the extent of ₹ 400 Cr (Q3FY25 : ₹ 100 Cr & Q4FY25 : ₹ 300 Cr) vs. 2.67% (after additional prudential provision on SRs of ₹ 175 Cr) for FY24
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L&T FINANCE 9 CE – Collection Efficiency Executive Summary – FY25 (3/5) Financial Performance Overview Wholesale Book reduced from ₹ 5,528 Cr in FY24 to ₹ 2,582 Cr in FY25, reduction of 53% YoY Annual update on Security Receipts (SRs) : Net Security Receipts (SRs) book reduced from ₹ 6,770 Cr in FY24 to ₹ 5,862 Cr in FY25, on back of : • Monetization of assets driven by active stakeholder negotiation • Completion of projects and subsequent sale of constructed units • Recovery measures implemented through legal action With wholesale book reduction progressing satisfactorily, we will continue to work with ARCs focusing efforts towards reduction in security receipts.
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L&T FINANCE 10 Executive Summary – Q4FY25 and FY25 (4/5) Financial Performance Overview Utilisation of Macro-prudential Provisions – Delivering stable credit cost outcome in an adverse cycle • LTF, during COVID (FY21 & FY22), had created macro-prudential provision of ₹ 975 Cr (out of operating profits) exclusively for Rural Group Loans & Microfinance business (RGL & MFI). This provision has been created under a board approved policy that approves utilisation only in case of macro events. • During FY25, there had been certain macro events viz. prolonged heat wave, severe floods in several states & temporary slowdown of cash flow for rural employment schemes due to general elections. This has led to increased credit cost for RGL & MFI portfolio, thus warranting a case for utilisation of these macro prudential provisions. • In alignment with the above inclement business environment in RGL & MFI, LTF post approval by the Audit Committee and the Board has utilized ₹ 400 Cr of macro-prudential provisions in FY25 (₹ 100 Cr in Q3FY25 and ₹ 300 Cr in Q4FY25). The actual utilisation of ₹ 400 Cr is within the lower end of the guided range of utilisation. With this, we move into the next financial year with an unutilised macro-prudential provision of ₹ 575 Cr. • Even though CE showed significant improvement for LTF in early Q4FY25, the quarter witnessed another development in the industry in the form of an ordinance towards prevention of coercive practices (for unregistered financiers) in Karnataka. Due to this, the Karnataka CE was impacted in Feb’25. Thereafter, the CE has been showing signs of improvement through March & April • In the absence of any further new events, we expect a return to normalized CE by early Q2FY26 for LTF.
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L&T FINANCE 11 Executive Summary – Q4FY25 (5/5) Strategic Initiatives Fully operationalised Project Cyclops 2.0 – LTF’s proprietary AI-ML based credit underwriting engine in Two Wheeler Finance. Project Cyclops is already under phase-wise implementation in Farm Equipment Finance and is expected to be rolled out to Personal Loans in Q1FY26 and SME Finance by Q2FY26 Initiated build of ‘Project Nostradamus’, an automated real time cross-sell, risk and portfolio management platform leveraging macro parameters and alternate data. Nostradamus Beta version is expected to go live by end of Q2FY26 Launch of PLANET 3.0 (Beta) mobile platform & new website (www.LTFINANCE.com) providing seamless user experience across platforms Partnerships with Amazon Pay, Cred and PhonePe, launched in FY25, picking up pace with ₹ 215 Cr of disbursements in March 2025, up from ₹ 98 Cr in January 2025 Entry into Gold Loan Business : In early Q4FY25, LTF entered into Business Transfer Agreement with Paul Merchants Finance Pvt Ltd for the proposed acquisition of their gold loan business undertaking by way of a slump sale on a going concern basis, subject to customary closing conditions. Integration plan & governance framework put in place to achieve closure by Q2FY26
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L&T FINANCE 12 Executive Summary – Q4FY25 Financial Performance RETAIL DISBURSEMENT ₹ 14,899 Cr -1% YoY | -2% QoQ RETAIL BOOK ₹ 95,180 Cr +19% YoY | +3% QoQ CONSOL NIMs+FEES 10.15% -110bps YoY | -18bps QoQ CONSOL PAT ₹ 636 Cr +15% YoY | +2% QoQ CONSOL ROA 2.22% +3bps YoY | -5bps QoQ CONSOL ROE 10.13% +59bps YoY | -8bps QoQ RETAIL DISBURSEMENT
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L&T FINANCE 13 Executive Summary – FY25 Financial Performance RETAIL DISBURSEMENT ₹ 60,040 Cr +11% YoY RETAIL BOOK ₹ 95,180 Cr +19% YoY CONSOL NIMs+FEES 10.59% -7bps YoY CONSOL PAT ₹ 2,644 Cr +14% YoY CONSOL ROA 2.44% +12bps YoY CONSOL ROE 10.87% +52bps YoY RETAIL DISBURSEMENT
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L&T FINANCE 5 Pillar Strategy – An Update 14
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L&T FINANCE 15 5 Pillar strategy to deliver on Lakshya goals • Broadening customer funnel & velocity while increasing throughput • Harvesting the customer & increasing cross-sell, while keeping risk under control • Launching contiguous product offerings • Building a self-learning credit engine based on bureau, account aggregator & alternate data signals to make underwriting more robust • Optimizing digital journeys to eliminate chokepoints & provide a superlative experience to customers • In-house engineering for enhanced time to market • Enhancing brand presence across channels • Building salience & recall for brand ‘L&T Finance’ • Focused enhancement and optimization of talent pool in: o Artificial Intelligence / Machine Learning o Credit & Risk o Tech & Engineering Enhancing Customer Acquisition Sharpening Credit Underwriting Implementing Futuristic Digital Architecture Heightened Brand Visibility Capability Building 1 2 3 4 5
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L&T FINANCE 16 Pillar 1: Enhancing Customer Acquisition New Customer Acquisition (no. in lacs) 6.8 6.7 5.8 Two Wheeler Finance Active sourcing points (nos.) 10,711 11,178 9,768 Rural Group Loans & MFI New villages activated (nos.) 21,524 21,832 19,975 Q4 FY24 Q1 FY25 Q3 FY25 New Customer Acquisition (strategic focus from Q3FY24 onwards) Expanding Reach (strategic focus from Q3FY24 onwards) Rural & Urban Customer Funnels Rural Funnel Urban Funnel Farm Equipment Finance Active sourcing points (nos.) 2,431 2,433 2,512 Personal Loans Active DSAs & E-aggregators (nos.) 48 43 49 Home Loan / LAP Active sourcing points (nos.) 322 336 389 Attracting new customers By increasing distribution footprint Conscious channel rationalization in Two Wheeler Finance & Farm Equipment Finance in response to segment-specific environment 5.2 8,425 25,401 Q4 FY25 2,355 55 385 6.6 10,438 22,743 Q2 FY25 2,316 35 371
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L&T FINANCE 17 Pillar 1: Enhancing Customer Acquisition Cross-sell / up-sell channelized towards rural businesses in the backdrop of the prevailing market environment in Q4 Total Retail Repeat disbursement share (Count) 46% 43% 43% Total Retail Repeat disbursement share (Value) 34% 35% 32% Cross-sell & up-sell Personal Loans to existing customers % (Value) 59% 61% 49% Rural Group Loans & MFI Repeat % (Value) 69% 66% 69% Farm Equipment Finance Repeat % (Value) 25% 39% 22% Leveraging ~2.6 Cr database ~1.7 Cr ~0.9 Cr RURAL URBAN Rural & Urban Customer Database Active customers – 92 lac+ Rural Group Loans & MFI Repeat % (Count) 58% 53% 56% Q4 FY24 Q1 FY25 Q3 FY25 Q4 FY25Q2 FY25 46% 36% 63% 71% 19% 59% 49% 36% 40% 73% 34% 60%
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L&T FINANCE 18 NTC: New To Credit | ETC: Existing To Credit | Net Non Starters : Customers who bounced their 1st EMI Pillar 2: Sharpening Credit Underwriting (1/11) Handle disparate data sources Volume handling capacity 10X+ High speed transaction processing – 100+ TPS Existing to Credit Banking Payment Transactions Asset / customer location Historic Performance Bureau Account Aggregator (AA) Trust Signals KYC Image / Video External Affluency Index Raw Data Pre-processed Data ML Model BRE ETC Salaried / Non-Salaried Trust scores Thin file / Thick file NTC KYC Image / Video • ETC + AA • ETC + Trust Signals • NTC + AA • NTC + Trust Signals • NTC + Micro Geography • Satellite data Micro Geography Operationalised ‘Project Cyclops’ in Two Wheeler and Farm Equipment Finance NEXT-GEN OMNI-PRODUCT AND OMNI-CUSTOMER UNDERWRITING ENGINE TW : 16 SCORECARDS FARM : 24 SCORECARDS Project Cyclops TW portfolio is now being benchmarked for its efficacy to CIBIL’s Credit Vision algorithm
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L&T FINANCE 19 Pillar 2: Sharpening Credit Underwriting (2/11) Rural Business Finance – Stringent Portfolio Policy & Sourcing Norms Strong credit guardrails implemented over the years reflecting enhanced portfolio resilience Applicant to be 0 DPD LTF only onboards if the customer is a 0 DPD JLG customer Strict Association Norms Maximum of 3 lenders including LTF (both for fresh and repeat customers) JLG Indebtedness Norms Total JLG Indebtedness for 3 lenders incl LTF restricted upto ₹ 2 lacs Income estimation & total indebtedness norms Household income estimation and details of total indebtedness as obtained from credit bureau Maker-checker mechanism for sourcing Independent unbiased assessment of borrower Maker Business Field Level Officer (part of Business Function) Checker Branch Process Manager (separate appraisal vertical) Ensures the following: • Estimation of standard of living & repayment capacity • KYC verification • On-ground sensing If the applicant doesn’t satisfy any of 1, 2 and 3 conditions then the loan application will not be processed 1 2 3 4 5 (continued even after regulatory relaxation in Apr’20) (continued even after regulatory relaxation in Apr’20) (post Apr’22)
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L&T FINANCE 20 Pillar 2: Sharpening Credit Underwriting (3/11) Rural Business Finance – Stringent Portfolio Policy & Sourcing Norms One customer has only one JLG loan from LTF at any point of time Strong Early Warning SignalsMonthly customer leverage tracker Exclusive Risk Control Unit Comprehensive customer leverage tracker dashboard deployed • Dashboard collates data of customer leverage with LTF and other peers • Customers categorized basis their overall leverage and repayment history • Provides 360o view of customer leverage & output matrix for LTF decisioning on customer retention and geo strategy Customer profiling to predict repayment behaviour and propensity to default • Paying LTF’s EMI but not paying external liabilities • Off-us customer profiling on monthly basis to monitor repayment behaviour • 700+ member strong team with pan India presence which acts as a strong line of defense for fraud prevention and control • Independent reporting to head of internal audit • Scope of work involves: o Sourcing audit o Disbursement audit o Collection audit
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L&T FINANCE 21 Pillar 2: Sharpening Credit Underwriting (4/11) Rural Business Finance – Stringent Portfolio Policy & Sourcing Norms Identified early delinquency trends which led to stringent sourcing guardrails Association wise customer composition at sourcing (% of disbursements) Association Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Only LTF 47% 48% 50% 48% 49% 53% 52% LTF + 1 28% 28% 28% 32% 31% 30% 30% LTF + 2 19% 19% 17% 19% 20% 17% 18% LTF + 3 6% 5% 5% 1% 0% 0% 0% Total 100% 100% 100% 100% 100% 100% 100% LTF only onboards if the customer is a ‘0 DPD’ JLG customer
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L&T FINANCE 38% 26% 18% 10% 4% 1.7% 41% 27% 18% 8% 3.3% 1.2% 43% 28% 18% 7% 2.5% 0.9% 45% 29% 18% 6% 1.7% 0.5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% LTF LTF + 1 LTF + 2 LTF + 3 LTF + 4 LTF + 5 Q1FY25 Q2FY25 Q3FY25 Q4FY25 22 CE – Collection Efficiency Pillar 2: Sharpening Credit Underwriting (5/11) Rural Business Finance – Stringent association norms leading to industrybest association cohorts… Customer Association on Rural Group Loans & Microfinance loan book (%) LTF + >=3 sharply reduced from 17% to 8% in just 3 quarters Contribution of LTF+1, 2 and 3 increased from 82% (Q1FY25) to 92% (Q4FY25) of book LTF + >=4 portfolio successfully reduced to negligible levels | LTF + 6 and LTF + >6 run down to 0.2% & 0.1% respectively 99.7% 99.5% 99.2% 98.0%Mar’25 CE Focused collection efforts leading to reduction of higher association portfolio +7% +3% Portfolio with lower number of associations reflects better CE Portfolio with higher number of associations also reflects higher CE
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L&T FINANCE 23 Pillar 2: Sharpening Credit Underwriting (6/11) …and a robust portfolio Continuous efforts on maintaining and improving existing superior portfolio metrics 100% 25% Industry LTF On Due Date (ODD) CE % vs Borrower Vintage Rural Group Loans (JLG) & Micro Finance (JLG) Focus on ODD CE leading to superior Regular CE Delinquency levels superior to industry average Responsible leveraging of customers across cycles Calculation methodology of Indexed representation Indexed representation of Industry Delinquency vs LTF Source: Industry data by Transunion CIBIL CE: Collection Efficiency Basis rolling 12-month sourcing cohorts (in ₹) 3-5 Yrs 5+ Yrs 1-3 Yrs <1 Yrs Delinquency is calculated as 12 Month On Book (MOB) ever 90+ performance in Jan’24- Dec’24 for last 12 mth disbursements over Jan’23- Dec’23 period ATS • If industry delinquency is X%, that is taken as the base on an index of 100% • LTF delinquency is shown as a percentage of this index, i.e. 25% of X 99.2% 98.9% 98.8% 98.8% 98.8% Mar24 Jun24 Sep24 Dec24 Mar25 - 20,000 40,000 60,000 80,000 1,00,000 Mar24 Jun24 Sep24 Dec24 Mar25
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L&T FINANCE 24 Pillar 2: Sharpening Credit Underwriting (7/11) Leading to a robust portfolio Sustained effort to build credit resilient portfolio in TW and Farm Equipment business Farm Equipment Finance Two Wheeler Finance LTV % & ATS Optimum LTV and margin levels (₹ in lacs) 100% 87% Industry LTF Delinquency levels better than industry average. Further improvement in portfolio sourcing quality reflecting in slide 27 Optimum LTV and margin levels 100% 89% Industry LTF Delinquency levels better than industry average, recent cohorts underwritten through Cyclops exhibiting superior risk outcomes (details in slide 26) Indexed representation of Industry Delinquency vs LTF Indexed representation of Industry Delinquency vs LTF Delinquency is calculated as 12 Month On Book (MOB) ever 90+ performance in Jan’24-Dec’24 for last 12 mth disbursements over Jan’23-Dec’23 period Basis rolling 12-month sourcing cohorts ATS LTV Source: Industry data by Transunion CIBIL 74% 74% 75% 77% 76% 93K 98K 101K 107K 114K 50 60 70 80 90 100 110 120 130 60% 62% 64% 66% 68% 70% 72% 74% 76% 78% Mar24 Jun24 Sep24 Dec24 Mar25 73% 73% 72% 72% 72% 5.5 5.5 5.5 5.6 5.6 - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 60% 62% 64% 66% 68% 70% 72% 74% Mar24 Jun24 Sep24 Dec24 Mar25 LTV % & ATS (in ₹) ATS LTV
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L&T FINANCE 25 Pillar 2: Sharpening Credit Underwriting (8/11) Journey towards building a Prime-dominant Two Wheeler portfolio 49% 51% 53% 74% 79% 82% Jan Feb Mar Q4FY24 Q4FY25 Prime share in disbursements 36% 38% 39% 51% 52% 54% Jan Feb Mar Q4FY24 Q4FY25 Prime share on book Prime customer share in disbursements increased to 82% in Mar’25; Prime share on book reached 54% Two Wheeler Finance
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L&T FINANCE 26 Bounce : Proportion of customers who bounce their EMI during the month Pillar 2: Sharpening Credit Underwriting (9/11) Journey towards quality sourcing - Two Wheeler Finance portfolio Early impact of Project Cyclops and prime sourcing visible in reducing portfoliobounce rates 100% Two Wheeler Finance Indexed representation of TW Portfolio Bounce (%) 101% 102% 98% 94% 92% 88% 96% 95% 88% 91% 87% 85% Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Base month March 2024 Indexed Bounce% Calculation methodology : Portfolio Bounce % in Mar’24 is taken as the base on an index of 100%; E.g. Bounce % in Mar’25 is 85% of bounce % of Mar’24 (base period)
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L&T FINANCE 27 NNS : Proportion of customers who bounced their 1st EMI Pillar 2: Sharpening Credit Underwriting (10/11) Journey towards quality sourcing – Farm Equipment Finance portfolio Better credit metrics reflected in reduction in NNS for tractor customers through the following initiatives: • Sharpened credit underwriting through identified dealership rationalisation • Increase in penetration of digital payments from 32% in Apr’23 to 61% in Mar’25 (refer slide 64) 100% Indexed representation of Farm Net Non Starters (NNS) % 159% 135% 99% 85% 75% 64% 58% 43% 39% 45% 55% 38% Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Base month Mar2024 Indexed NNS% Calculation methodology : NNS % in Mar’24 is taken as the base on an index of 100%; E.g. NNS % in Mar’25 is 38% of NNS % of Mar’24 (base period) Farm Equipment Finance
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L&T FINANCE 28 Pillar 2: Sharpening Credit Underwriting (11/11) Leading to a robust portfolio Focus on maintaining prime secured portfolio performance Optimum LTV and margin levels Home Loans 100% 62% Industry LTF Indexed representation of Industry Delinquency vs LTF Delinquency levels better than industry average 100% 16% Industry LTF Indexed representation of Industry Delinquency vs LTF LAP Delinquency is calculated as 12 Month On Book (MOB) ever 90+ performance in Jan’24-Dec’24 for last 12 mth disbursements over Jan’23-Dec’23 period Basis rolling 12-month sourcing cohorts 62% 66% 62% 63% 62% 70 71 73 74 73 - 10 20 30 40 50 60 70 80 0% 20% 40% 60% 80% 100% 120% Mar24 Jun24 Sep24 Dec24 Mar25 58% 56% 59% 59% 59% 74 79 81 83 81 - 10 20 30 40 50 60 70 80 0% 20% 40% 60% 80% 100% 120% Mar24 Jun24 Sep24 Dec24 Mar25 Source: Industry data by Transunion CIBIL ATS & LTV % (₹ in lacs) ATS & LTV % (₹ in lacs) ATS LTV ATS LTV
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L&T FINANCE 29 Pillar 3: Implementing Futuristic Digital Architecture Engineering for tomorrow – Future Tech Landscape | Tech initiatives continue to be on track in Q4 Kicked off Project Nostradamus: Advanced automated portfolio management with predictive risk controls Launch of PLANET 3.0 & new website: Differentiated D2C experience through integrated AI workflows Significantly reduced overall application downtime to <0.6% Building Tech infrastructure to drive variety, volume, velocity, and veracity
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L&T FINANCE 30 Pillar 4: Heightened Brand Visibility Focused ongoing efforts to expand and strengthen brand presence during Q4FY25 Onboarded Jasprit Bumrah as Brand Ambassador Targeted engagement through multi- channel and multi-product branding Partnered with L&T Group for the MMRDA Atal Setu L&T Marathon 2025 Providing water coolers in schools & hospitals with LTF branding
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L&T FINANCE 31 Pillar 5: Capability Building & Employee Initiatives Employee development initiatives Bolstering capabilities in digital infrastructure | Continued employee development initiatives Built key capabilities in Engineering & Data teams • Established data science library with >7 alternate data channels with 100+ scorecards • Established two new application engineering centres in order to accommodate rapidly growing in-house engineering and analytics team • Integrating AI with the workflows to optimize the results - AI-based inhouse image processing - AI-based query management: Customer Care agents and bots • Launched 270-degree feedback to foster a culture of continuous learning, development and collaboration • Organised Winspire program with 3 tracks - Building Growth Mindset, Rise and Propel – aiming to empower and advance women employees at different career stages • Collaborated with Symbiosis School for Online and Digital Learning (SSODL) to offer employees access to high-quality, industry-relevant programs
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L&T FINANCE Business Update 32
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L&T FINANCE 33 Retail disbursement remained calibrated on YoY basis Disbursements in Q4FY25 maintained relative to Q3FY25 festive quarter despite headwinds in Rural Group Loans and MFI ₹ in Cr -1% 15,044 15,210 14,899 Q4FY24 Q3FY25 Q4FY25 RETAIL FINANCE -11% 5,768 4,599 5,114 Q4FY24 Q3FY25 Q4FY25 +15% 1,530 2,495 1,755 Q4FY24 Q3FY25 Q4FY25 +2% 5,984 6,531 6,105 Q4FY24 Q3FY25 Q4FY25 +26% 1,213 1,249 1,528 Q4FY24 Q3FY25 Q4FY25 -2% +11% -30% -7% +22% Rural Business Finance Farmer Finance Urban Finance SME Finance
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L&T FINANCE 34 Retail book growth of 19% YoY Accelerated scale-up in Urban Finance and SME Finance driving growth ₹ in Cr +19% 80,037 92,224 95,180 Q4FY24 Q3FY25 Q4FY25 RETAIL FINANCE +6% 24,716 26,231 26,320 Q4FY24 Q3FY25 Q4FY25 +10% 13,892 15,075 15,219 Q4FY24 Q3FY25 Q4FY25 +27% 36,089 43,957 45,897 Q4FY24 Q3FY25 Q4FY25 3,905 5,817 6,524 Q4FY24 Q3FY25 Q4FY25 +3% +67% - +1% +4% +12% Rural Business Finance Farmer Finance Urban Finance SME Finance
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L&T FINANCE 35 Collection Efficiency (1/3) RURAL BUSINESS FINANCE RURAL BUSINESS FINANCE RURAL GROUP LOANS & MICRO FINANCE (JLG) RURAL GROUP LOANS & MICRO FINANCE (JLG) 99.8% 99.8% 99.8% 99.9% 99.8% 99.8% 99.8% 99.8% 99.8% 99.7% 99.8% 99.8% 99.7% 99.7% 99.6% 99.5% 99.5% 99.4% 99.3% 99.3% 99.4% 99.4% 99.0% 99.4% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY24 FY25 99.4% 99.4% 99.4% 99.4% 99.5% 99.5% 99.5% 99.4% 99.3% 99.2% 99.2% 99.3% 99.2% 99.2% 99.0% 98.7% 98.5% 98.3% 98.1% 97.9% 97.9% 97.9% 97.6% 97.6% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY24 FY25 0 DPD CE % 0-90 DPD CE % 0 DPD CE = POS of 0 DPD collected / POS of 0 DPD billed 0-90 DPD CE = POS of 0-90 DPD collected / POS of 0-90 DPD billed RURAL
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L&T FINANCE 36 Regular CE = cashflow received from 0 DPD customer for billing / billing of 0 DPD customer | DPD: Days Past Due Collection Efficiency (2/3) Robust collection efficiencies with improved digital collections RURAL FARMER FINANCE FARM EQUIPMENT FINANCE 89.9% 90.6% 91.2% 90.8% 90.7% 91.6% 87.5% 88.8% 91.8% 91.4% 91.7% 93.3% 88.4% 91.1% 91.8% 90.7% 90.8% 91.5% 88.9% 90.3% 92.8% 92.4% 91.6% 93.0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY24 FY25
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L&T FINANCE 37 Regular CE = cashflow received from 0 DPD customer for billing / billing of 0 DPD customer | DPD: Days Past Due Collection Efficiency (3/3) Improving collection efficiencies through granular execution focus URBAN FINANCE URBAN SME FINANCE TWO WHEELER FINANCE PERSONAL LOANS HOME LOANS & LAP
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L&T FINANCE 38 Industry figures are as per CRIF Highmark data | DPD: Days Past Due Retail Asset Quality (1/4) Improving asset quality trends – Rural Group Loans & MFI • Overall CE got affected in Feb’25 & Mar’25 due to the ordinance introduced to curb coercive actions (for unregistered financiers) in the state of Karnataka • However, CE has improved due to 2 factors: o Other states (ex-Karnataka) performing well, making up substantially for the reduction in Karnataka CE o Karnataka CE improving substantially between Feb’25 to Mar’25 from 96.31% to 97.84% • We expect overall CE to stabilize and trend towards normalcy by early Q2FY26 99.45% 99.48% 99.64% 99.39% 99.02% 99.38% Jan'25 Feb'25 Mar'25 RGL & MFI (ex-Karnataka) RGL & MFI (Total) 87.2% 86.8% 83.5%Industry 87.4% 86.9% Best-in-class 0 DPD portfolio and PAR trends vis-à-vis the Industry 96.8% 97.1% 97.0% 95.8%LTF 96.8% 96.4% Collection Efficiency (CE) trend 80.2% 0 DPD book 94.9% - LTF PAR Trends Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 PAR 1-30 0.0% 0.1% 0.1% 0.3% 0.6% 1.0% 1.1% PAR 31-60 0.1% 0.2% 0.2% 0.3% 0.5% 0.6% 0.9% PAR 61-90 0.1% 0.1% 0.2% 0.2% 0.4% 0.6% 0.5% PAR 90+ 3.0% 2.5% 2.5% 2.4% 2.1% 2.1% 2.6%
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L&T FINANCE 39 Industry figures are for the immediately preceding quarter reported as per CRIF Highmark data | DPD: Days Past Due Retail Asset Quality (2/4) ‘0 DPD’ for our 3 fulcrum products Best-in-class 0 DPD portfolio of LTF vis-à-vis the Industry FARM EQUIPMENT FINANCE TWO WHEELER FINANCE 78.2% 87.6% Industry LTF 79.6% 89.0% Industry LTF 80.2% 94.9% Industry LTF RURAL GROUP LOANS & MICRO FINANCE (JLG)
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L&T FINANCE 40 *Stage 2 provisions include Macroprudential provisions; Stage wise book and corresponding provisions are based on customer dpd Retail Asset Quality (3/4) Stagewise assets & provision summary Stage wise (in ₹ Cr) Q4FY24 Q4FY24 (% of Total) Q3FY25 Q3FY25 (% of Total) Q4FY25 Q4FY25 (% of Total) Stage 1 75,863 94.79% 87,325 94.69% 90,027 94.59% Stage 2 1,903 2.38% 2,273 2.46% 2,390 2.51% Stage 3 2,271 2.84% 2,627 2.85% 2,763 2.90% Total 80,037 100% 92,224 100% 95,180 100% G R O S S A S S E T S Stage wise (in ₹ Cr) Q4FY24 Q4FY24 (% PCR) Q3FY25 Q3FY25 (% PCR) Q4FY25 Q4FY25 (% PCR) Stage 1 437 0.58% 492 0.56% 516 0.57% Stage 2* 1,308 68.77% 1,266 55.73% 1,004 42.00% Stage 3 1,786 78.66% 1,898 72.26% 2,011 72.77% Total 3,531 4.41% 3,657 3.97% 3,531 3.71% P R O V I S I O N Stage wise (in ₹ Cr) Q4FY24 Q4FY24 (% of Net Assets) Q3FY25 Q3FY25 (% of Net Assets) Q4FY25 Q4FY25 (% of Net Assets) Stage 1 75,426 94.76% 86,833 94.66% 89,510 94.56% Stage 2 594 0.75% 1,006 1.11% 1,387 1.47% Stage 3 485 0.62% 729 0.81% 753 0.81% N E T A S S E T S
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L&T FINANCE 41 Asset Quality numbers are based on Exposure at Default (EAD) Retail and Consol Asset Quality (4/4) Retail and Consol GS3 Maintained steady Consolidated GS3 and NS3 2,271 2,627 2,763 485 729 753 2.84% 2.85% 2.90% 0.62% 0.81% 0.81% -1% 1% 3% 5% 7% 9% 11% 13% 0501001502002503003504004505005506006507007508008509009501,0001,0501,1001,1501,2001,2501,3001,3501,4001,4501,5001,5501,6001,6501,7001,7501,8001,8501,9001,9502,0002,0502,1002,1502,2002,2502,3002,3502,4002,4502,5002,5502,6002,6502,7002,7502,8002,8502,9002,9503,0003,0503,1003,1503,2003,2503,3003,3503,4003,4503,5003,5503,6003,6503,7003,7503,8003,8503,9003,9504,0004,0504,1004,1504,2004,2504,3004,3504,4004,4504,5004,5504,6004,6504,7004,7504,8004,8504,9004,9505,000 Q4FY24 Q3FY25 Q4FY25 RETAIL - ASSET QUALITY 73%79% 72% 2,698 3,075 3,218 661 905 929 3.15% 3.23% 3.29% 0.79% 0.97% 0.97% 0% 3% 6% 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Q4FY24 Q3FY25 Q4FY25 GS3 (%)NS3 (₹ Cr)GS3 (₹ Cr) NS3 (%) PCR (%) 76% 71% 71% CONSOLIDATED – ASSET QUALITY
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L&T FINANCE 42 Proactive Asset Liability Management Diversified liability mix has enabled in restricting the quarterly WACB by 1 bps (QoQ) to 7.84% in Q4FY25 | Managed superior WACB with a mere 33 bps increase over past 3 years while policy rates have moved up significantly OUTPERFORMING IN TIMES OF RISING INTEREST RATE ENVIRONMENT ‘AAA’ rating CRISIL, ICRA, CARE, India Ratings Prudent ALM along with changing portfolio mix towards retail Leveraged Retail Asset profile to garner competitive funding DIVERSIFIED LIABILITY MIX (%) 7.71% 7.77% 7.79% 7.81% 7.82% 7.85% 7.80% 7.83% 7.84% Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Mar-24 Mar-25 ₹ 92,247 Cr ₹ 76,541 Cr Bank Loan - Non-PSL Bank Loan - PSL FI Loan NCD Private Retail NCD CP ECB Others WEIGHTED AVERAGE COST OF BORROWING (WACB) (%) 7.50% 7.46% 7.80% 7.83% FY22 FY23 FY24 FY25 28% 20% 5% 35% 2% 5% 3%2% 27% 26% 3% 26% 1% 7% 8% 2%
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ANNEXURES 43
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L&T FINANCE 44 Entry into Gold Loan Business – An update • Entered into Business Transfer Agreement (BTA) for the proposed acquisition of gold loan business undertaking of Paul Merchants Finance Pvt. Ltd. (wholly owned subsidiary of Paul Merchants Ltd.) on 7th February 2025 • The acquisition cuts time-to-scale gold loan business by 36 months providing a high quality profitable attractive RoA profile gold loan franchise at an attractive consideration • Integration plan & governance framework put in place and with the integration across people, location, technology and vendors progressing well on-track • The acquisition which by way of a slump sale on a going concern basis, is expected to close by Q2FY26 (subject to customary closing conditions) Key numbers around the proposed acquisition ₹ 1,254 Cr Gold loan book size – Mar’25 ~700 Employees ~130 Gold Loan branches North & West focused ~1.0 lac Customer base
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L&T FINANCE 45 Index of Annexures Dominant Retail Franchise built over a decadeI Financials Other Annexures II III
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L&T FINANCE 46 L&T Finance Pedigree & Position Part of illustrious L&T group Upper Layer NBFC as per RBI classification Amongst Top Retail NBFCs Highest Credit Rating – ‘AAA’ Top Notch ESG Ratings Top 10 Retail NBFCs Built on the foundation of Trust & Commitment
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L&T FINANCE 47 Retail Businesses Q1 FY24 44% 56%Portfolio Mix URBANRURAL Home Loans & LAP SME Loans to Professionals & Traders (incl. supply chain) Two Wheeler Finance Personal Loans Rural Group Loans & Micro Finance (JLG) Farm Equipment Finance Micro LAP Agri Allied Finance Rural Business Finance Farmer Finance Urban Finance SME Finance
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L&T FINANCE 48 Retail Franchise & Right to Win Q1 FY24 44% 56%Portfolio Mix URBANRURAL ~₹ 95,000 Cr Retail Book DIVERSIFIED RETAIL NBFC Two Wheeler Finance Rural Group Loans & Micro Finance (JLG) Farm Equipment Finance Pan-India presence ~2,00,000 Villages 100+ Cities / Towns Leveraging ~2.6 Cr customer franchise for cross sell 13,000+ Distribution touch points Optimised Digital Service & Distribution delivery platform 1.72 Cr+ downloads Leading to Leadership in 3 fulcrum products Retail Digital Franchise built over 15 years
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L&T FINANCE 49 Pincode wise location mapping Granular and extensive distribution network State Rural Branches Urban Branches Madhya Pradesh 99 15 Maharashtra 66 37 Uttar Pradesh 132 17 Gujarat 82 20 Karnataka 246 15 West Bengal 121 12 Andhra Pradesh 60 10 Telangana 41 16 Haryana 41 7 Rajasthan 61 8 Bihar 420 9 Punjab 44 5 Odisha 127 6 Tamil Nadu 402 15 Kerala 93 3 Others 50 17 Pan India 2,085* 212 LTF Rural Network 18 States 1 UT ~2,00,000 Villages LTF Urban Network 100+ Cities / Towns 2 UT 20 States Total Branch Count: 245 (Rural – 33, Urban – 212) *Rural Branches comprise of Rural Group Loans & Micro Finance meeting centres (2,052) and dedicated Farmer Finance branches (33)
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L&T FINANCE 50 Market dominance through fulcrum product built over a decade (1/3) Rural Group Loans and Micro Finance (JLG) - amongst the Leading Financiers Operational excellence • Automated underwriting; geo- strategy based on women credit penetration • Collection-led disbursement • State of the art Risk Control Unit; Compulsory bureau check Well diversified footprint • 16 states across ~350 districts, 2,000+ Meeting Centre Branches • Key states: Bihar, Tamil Nadu & Karnataka Customer Centricity • LTF exclusive customers at ~40% • Retention products – 70% retention • Optimum customer leverage Excellent Asset Quality • No additional top-up loans for delinquent customers • 100% PCR on 90+ bucket • Macro-prudential provisions Created strong risk guardrails • Financier association limit – maximum 3 • Continued exposure checks & FOIR norms • Pincode selection basis PAR & customer leverage 916 2,234 3,551 7,819 12,476 12,495 12,207 13,278 18,693 24,716 26,320 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR 40% 1,178 2,536 3,514 7,214 10,903 9,884 6,613 9,950 16,910 21,495 20,921 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR 33% 16+ years of Vintage ~1.5 Cr customers serviced in rural India B O O K D I S B U R S A L Rural Group Loans & Micro Finance (JLG)
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L&T FINANCE 51 Market dominance through fulcrum product built over a decade (2/3) Farm Equipment Finance – amongst the Leading Financiers • 170+ branches across 18 states & 1 UT • Key states: Uttar Pradesh, Madhya Pradesh, Telangana, Karnataka • Retention products (Kisan Suvidha) • Paperless Digital Journey • Best-in-class TAT: 24 hours • Collection led disbursements; CE @ 93.0% • Analytics-based scorecard for decision-making • Water reservoir levels, Rainfall distribution, State fiscal position • Farm cash cycle, MSP, sowing pattern • Tractor model / HP & other asset variables Operational excellence Created strong risk guardrails Well diversified footprint Customer Centricity • ~2,400 Dealers • Non-captive distribution franchise • Well penetrated across Top 5 OEMs Dealer / OEM Relationship B O O K D I S B U R S A L 20+ years of Vintage 11 Lac+ customers serviced in rural India Farm Equipment Finance 4,739 4,649 4,379 5,811 7,362 8,438 10,261 11,317 12,819 13,892 15,219 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR 12% 2,532 1,792 1,570 3,249 3,864 3,821 4,477 5,152 6,450 6,848 7,935 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR 12%
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L&T FINANCE 52 Market dominance through fulcrum product built over a decade (3/3) Two Wheeler Finance - amongst the Leading Financiers • 8,400+ Sourcing points • Non-captive distribution franchise • Analytics driven OEM cum Dealer business model • Channel level engagement model • 137 locations across India • Key states: West Bengal, Tamil Nadu, Gujarat • Straddle continuum from New To Credit to Prime customers • Paperless Digital Journey • Sabse Khaas Loan & Income Proof loans - 1st in Industry • Collection led disbursements; CE @ 98.6% • Straight through processing • Customer profiling using lookalikes • OEM model variables • Pincode selection basis multivariate analysis • Dealership performance Customer Centricity Dealer / OEM Relationship Well diversified footprint Operational excellence Created strong risk guardrailsB O O K D I S B U R S A L 1,436 1,761 2,110 3,414 5,739 6,575 7,122 7,462 8,960 11,205 12,321 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR 24% 1,307 1,595 1,753 2,978 4,968 4,901 4,436 5,084 7,110 8,586 9,285 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 CAGR 22% 10+ years of Vintage 75 Lac+ customers serviced in urban India Two Wheeler Finance
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L&T FINANCE 53 Index of Annexures Dominant Retail Franchise built over a decadeI Financials Other Annexures II III
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L&T FINANCE 54 Lending Business – Business wise disbursement split Q4FY24 Q3FY25 Q4FY25 Y-o-Y (%) Segments (₹ Cr ) FY24 FY25 Y-o-Y (%) Farmer Finance 1,530 2,495 1,755 15% Farm Equipment Finance 6,848 7,935 16% Rural Business Finance 5,639 4,462 4,965 (11%) Rural Group Loans 20,709 20,415 (3%) 129 137 149 Micro Finance 786 506 Urban Finance 2,502 2,414 1,857 (26%) Two Wheeler Finance 8,586 9,285 8% 968 1,642 1,915 98% Personal Loans 4,285 6,096 42% 1,823 1,789 1,661 (9%) Home Loans 5,763 6,898 20% 690 686 671 (3%) LAP 1,782 2,685 51% 1,213 1,249 1,528 26% SME Finance 3,657 5,000 37% 549 336 398 (27%) Acquired Portfolio 1,852 1,222 (34%) 15,044 15,210 14,899 (1%) Retail Finance 54,267 60,040 11% Disbursement 3 0 - (100%) Real Estate Finance 171 7 (96%) 320 - 15 (95%) Infrastructure Finance 1,855 258 (86%) 323 0 15 (95%) Wholesale Finance 2,026 265 (87%) 15,366 15,210 14,914 (3%) Total Disbursement 56,293 60,305 7%
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L&T FINANCE 55 Lending Business – Business wise book split Book Q4FY24 Segments (₹ Cr) Q3FY25 Q4FY25 Y-o-Y (%) Farmer Finance 13,892 Farm Equipment Finance 15,075 15,219 10% Rural Business Finance 24,716 Rural Group Loans & Micro Finance Loans 26,231 26,320 6% Urban Finance 11,205 Two Wheeler Finance 12,676 12,321 10% 6,440 Personal Loans 7,820 8,648 34% 14,550 Home Loans 18,202 19,250 32% 3,893 LAP 5,259 5,678 46% 3,905 SME Finance 5,817 6,524 67% 1,435 Acquired Portfolio 1,144 1,220 (15%) 80,037 Retail Finance 92,224 95,180 19% 2,337 Real Estate Finance 1,214 1,180 (50%) 3,191 Infrastructure Finance 1,683 1,402 (56%) 5,528 Wholesale Finance 2,897 2,582 (53%) 85,565 Total Book 95,120 97,762 14%
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L&T FINANCE 56 LTF Consolidated – Summary financial performance Q4FY24 Q3FY25 Q4FY25 Y-o-Y % Summary P&L (₹ Cr ) FY24 FY25 Y-o-Y (%) 3,244 3,610 3,535 9% Interest Income 12,492 14,044 12% 1,335 1,569 1,600 20% Interest Expense 5,377 5,997 12% 1,909 2,041 1,936 1% NIM 7,115 8,048 13% 441 439 477 8% Fee & Other Income 1,609 1,740 8% 2,350 2,480 2,412 3% Total Income 8,724 9,787 12% 980 1,058 1,004 2% Operating Expense 3,511 3,984 13% 1,370 1,423 1,409 3% Earnings before credit cost 5,212 5,803 11% 500 698 903 81% Credit Cost [-] (Before utilizing Macro-prudential provisions) 2,006 2,711 35% - 100 300 - Macro-prudential provisions utilized [+] - 400 - 500 598 603 21% Credit Cost (After utilizing Macro-prudential provisions) 2,006 2,311 15% 870 825 806 (7%) PBT (Before Exceptional / One-off Items) 3,207 3,492 9% Exceptional Items / One-offs 175 - - - Additional Prudential provision on SRs at portfolio level 175 - - 695 825 806 16% PBT (After Exceptional / One-off Items) 3,032 3,492 15% 554 626 636 15% PAT 2,320 2,644 14% Performance Summary
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L&T FINANCE 57 LTF Consolidated – Summary financial performance Q4FY24 Q3FY25 Q4FY25 Y-o-Y % Particulars (₹ Cr ) FY24 FY25 Y-o-Y(%) 85,565 95,120 97,762 14% Closing Book 85,565 97,762 14% 84,014 95,227 96,357 15% Average Book 81,783 92,402 13% 23,438 24,910 25,564 11% Networth 23,438 25,564 11% 94.2 99.9 102.5 9% Book Value per share (₹) 94.2 102.5 9% 2.2 2.5 2.6 18% Basic Earning per share (₹) 9.3 10.6 14% Performance Summary
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L&T FINANCE 58 Credit cost including additional prudential provisions on SRs Q4FY24 – 3.23% and FY24 – 2.67% LTF Consolidated – Key ratios Particulars Tier I Tier II CRAR Consolidated CRAR ratio 20.76% 1.51% 22.27% Q4FY24 Q3FY25 Q4FY25 Key Ratios FY24 FY25 15.53% 15.04% 14.88% Yield 15.27% 15.20% 9.14% 8.50% 8.15% Net Interest Margin 8.70% 8.71% 2.11% 1.83% 2.01% Fee & Other Income 1.97% 1.88% 11.25% 10.33% 10.15% NIM + Fee & Other Income 10.67% 10.59% 4.69% 4.41% 4.22% Operating Expenses 4.29% 4.31% 6.56% 5.93% 5.93% Earnings before credit cost 6.37% 6.28% 2.39% 2.91% 3.80% Credit Cost (Before utilizing Macro-prudential provisions) 2.45% 2.93% 2.39% 2.49% 2.54% Credit Cost (After utilizing Macro-prudential provisions) 2.45% 2.50% 2.19% 2.27% 2.22% Return on Assets 2.32% 2.44% 3.27 3.46 3.61 Debt / Equity (Closing) 3.27 3.61 3.22 3.38 3.44 Debt / Equity (Average) 3.35 3.35 9.53% 10.21% 10.13% Return on Equity 10.35% 10.87% Key Ratios
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L&T FINANCE 59 Index of Annexures Dominant Retail Franchise built over a decadeI Financials Other Annexures II III Asset Liability Management & Credit Ratings PLANET and Digital Update Sustainability (ESG & CSR) Board and Senior Management
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L&T FINANCE 60 App as a powerful digital channel for customer (1/2) PLANET App Features Completed In Progress View Loan Account Details & update Profile Download SOA & Repayment Schedule Download NOC & Foreclosure report Download Interest Certificate Download Welcome Kit D2C journey: Mandi Price (Farm customer) Multi Bureau Credit Score Update Mandate Details Servicing features Engagement features Autonomous journeys OUR ‘PLANET’ APP FEATURES (Launched in March 2022) Rural Marketplace Loyalty Program 2W Marketplace EMI calculator Make Foreclosure & Part Payments Personal Loans 2W Loans Farm Equipment (Top up) & Agri- allied Home Loan & LAP (OD) SME Rural Group Loans & Micro Finance ITR filing Servicing channel enroute to becoming a geo-agnostic sourcing channel
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L&T FINANCE 61 Developing digital finance delivery as a customer value proposition ₹ 3,800 Cr+ Collections 685 Lac+ Servicing Experience ₹ 12,700 Cr+ Sourcing 16.0 Lac Rural Customers COLLECTIONS SERVICING (%) SOURCING Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 630 1,168 1,175 715 104 132 191 296 42% 47% 47% 67% Downloads 1,63,14,319 4.5 Downloads 8,87,429 4.3 1,72,00,000+ Downloads Q4 FY24 1,126 369 75% ₹ in Cr Q1 FY25 1,024 529 82% Q2 FY25 1,683 641 82% Q3 FY25 2,027 718 86% Q4 FY25 2,256 706 85%
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L&T FINANCE 62 App as a powerful digital channel for customer (2/2) PLANET App: Service Measurement Metrics upto Q4FY25 Update SERVICING RESOLUTION 18.6 21.5 26.0 41.4 SOA Downloads 9.3 8.9 9.4 10.9 9.5 9.2 11.0 11.0 11.3 Repayment Schedule 6.0 6.0 7.6 6.6 6.6 6.9 8.0 10.8 7.0 Payments 2.7 3.2 4.0 5.0 5.3 6.3 7.1 5.5 5.6 Statutory Kits (Welcome, NOC etc) 0.9 2.6 4.3 8.5 64.4 74.2 75.0 97.0 110.2 Credit Score 6.1 5.5 6.4 5.8 Count in lacs Mainly includes: Digital channels14% 92%35% 6%51% 2% MAR’21 MAR’25 Call centre Branches Inverting the Servicing Pyramid Servicing channels (% of interactions across channels) 85.8 3.8 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 90.4 3.8 Q2 FY25 101.1 1.6 Q3 FY25 126.6 1.9 Q4 FY25 134.2 2.0
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L&T FINANCE 63 Developing digital finance delivery as a customer value proposition Customer focused digital first approach in not only Urban but also in Rural 100% Digital Disbursements (Rural + Urban) 96% eNach Penetration (Urban) 96% Digital Collections (Urban) 33% Digital Collections (Rural) Paperless Journey in Rural Group Loans, 2W Finance, Farm Equip. Finance, Personal Loans Digital delivery: Touching every part of the customer ecosystem 100%
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L&T FINANCE 64 Marked improvement in Rural Digital collections 3% 3% 3% 4% 5% 5% 5% 10% 10% 13% 16% 21% 22% 19% 19% 22% 24% 23% 22% 24% 23% 23% 25% 27% Apr'23 May'23 Jun'23 Jul'23 Aug'23 Sep'23 Oct'23 Nov'23 Dec'23 Jan'24 Feb'24 Mar'24 Apr'24 May'24 Jun'24 Jul'24 Aug'24 Sep'24 Oct'24 Nov'24 Dec'24 Jan25 Feb25 Mar25 32% 34% 41% 42% 39% 38% 39% 40% 47% 51% 48% 48% 44% 50% 53% 56% 54% 53% 55% 52% 59% 62% 62% 61% Apr'23 May'23 Jun'23 Jul'23 Aug'23 Sep'23 Oct'23 Nov'23 Dec'23 Jan'24 Feb'24 Mar'24 Apr'24 May'24 Jun'24 Jul'24 Aug'24 Sep'24 Oct'24 Nov'24 Dec'24 Jan25 Feb25 Mar25 Rural Group Loans & Micro Finance (JLG) Farm Equipment Finance
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L&T FINANCE 65 *Score calculation based on response from customers onboarded during January - March 2025 Net Promoter Score Investing in enriching customer experience to build brand loyalty SME Loans Two Wheeler Finance Rural Group Loans & Micro Finance (JLG) Farm Equipment Finance Home Loans & LAP Personal Loans 655153 50 6467 LTF achieved an overall Net Promoter Score (NPS) of 54 NPS in Rural Segments NPS in Urban Segments With a goal to measure and improve customer satisfaction, initiated measurement of NPS starting October 2023 Continuous monitoring of NPS towards strengthening customer relationship and customer loyalty
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L&T FINANCE 66 Index of Annexures Dominant Retail Franchise built over a decadeI Financials Other Annexures II III Asset Liability Management & Credit Ratings PLANET and Digital Update Sustainability (ESG & CSR) Board and Senior Management
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L&T FINANCE 67 Prudent ALM - as on March 2025 Structural Liquidity statement Interest Rate sensitivity statement 1 year Gap ₹. Cr Re-priceable assets 71,937 Re-priceable liabilities 59,703 Positive 12,234 Cumulative Positive Gap 13,894 14,790 18,884 21,408 24,710 37,15817,134 Cumulative (%) 1,315% 1,333% 215% 156% 105% 101%445% 14,951 15,900 20,989 27,664 35,100 48,293 74,079 1,057 1,110 3,854 8,780 13,692 23,583 36,921 1-7 days 8-14 days 15 days-1 month 1-2 months 2-3 months 3-6 months 6-12 months Cumulative Inflows (₹. Cr) Cumulative Outflows (₹. Cr) Continue to maintain cumulative positive liquidity gaps
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L&T FINANCE 68 AAA credit rating: ratings update & rationale • Diversified business mix with strong presence across the financial services space • Strategic importance and strong support to financial services business by the parent, Larsen and Toubro Ltd. (L&T: AAA) • Strong resource raising ability and adequate capitalisation • Comfortable liquidity position Key strengths highlighted by Rating Agencies Credit Ratings – LTF Rating Agency Long-term / Short-term Rating of LTF CRISIL Ratings CRISIL AAA (Stable) / CRISIL A1+ ICRA ICRA AAA (Stable) / ICRA A1+ India Ratings IND AAA (Stable) / IND A1+ CARE Ratings CARE AAA (Stable) / CARE A1+
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L&T FINANCE 69 Index of Annexures Dominant Retail Franchise built over a decadeI Financials Other Annexures II III Asset Liability Management & Credit Ratings PLANET and Digital Update Sustainability (ESG & CSR) Board and Senior Management
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L&T FINANCE 70 SDG – Sustainable Development Goals L&T Finance – Businesses aligned with Sustainability goals 42% of the loan book franchise is towards financing sustainable livelihoods; 71% of workforce is employed from Rural
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L&T FINANCE 71 ESG : Building a Sustainable Future – Key Highlights Climate Engagement • Strengthening Climate Accountability: Amongst 1st Indian NBFC - Signatory to Partnerships for Carbon Accounting Financials (PCAF) • Driving Sustaining Energy Management: 1/3rd of Company operations are powered by Green Energy • Promoting Sustainable Water Use: Reached over 5,000 farmers to promote micro-irrigation for efficient water use • Retaining Water Positive/Surplus Status: Successfully retained over last 3 years • Improving Waste Management : Company- wide roadmap developed based on top 50 branches across PAN India • Fostering Biodiversity: 39 flora & 69 fauna species supported through Company’s Miyawaki plantation Social Engagement • Enhancing Digital & Financial Literacy: Digital and Financial literacy module training imparted to 3.40 Lakh+ beneficiaries • Sustaining Digital Sakhi Program Impact: Digital Seva Kendra and Common Service Centre (CSC) collaboration – partnership in Kerala • Empowering Individuals with Livelihood Skills: 200 youths certified in Banking and Finance course for gainful employment opportunities. • Bolstering Leadership Development: 270- degree feedback launched for senior leaders • Driving Inclusion through DEI Module: 81% completion rate achieved for the gamified DEI learning module within 2-months of launch for Business Leaders Stakeholder Engagement • Enhanced Board Effectiveness: 1st ever AI- Boot Camp organized for Independent Directors • Digital Sakhi Project Visit: CSR & ESG Committee Chairperson witnessed digital and financial transformation amongst women in Rajasthan • Enhancing Strategic Focus: Finalized Double Materiality Matrix by aligning impacts & risk of material topics • Average Training Hours : 37 hours of training was provided per employee • Health & Safety Capacity Building: Created employee (different departments) cohort of certified internal auditors for ISO 45001:2018
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L&T FINANCE 72 ESG : Building a Sustainable Future – Key Metrics & Impact Governance MilestonesSocial MilestonesEnvironment Milestones Green Power Emissions avoided (1,800+ tCO2e) Total EVs Financed (64,759) Emissions avoided by Financing 2W EVs (12,000+ tCO2e) E-waste Recycled (4,400+ kgs) Total waste recycled (50,000+ kgs) Water Replenished (~176 lakh kl) Female Employees at workforce (Increased from 4.6% to 5.4%)* Women Borrowers (61,94,180 beneficiaries)* Finclusion of Rural Communities (Over 14.2 lakh beneficiaries)* through (DFI) initiatives. Convergence of Social Schemes (₹180 Crore reaching over 2.40 lakh)* YOUth Drive for Safety (Reached over 1 lakh youth)* Hazard Identification & Risk Assessment (17% of PAN India branches covered)* Board Training on ESG & Infosec (100%) Awareness & Sensitization (100% employees trained on various BRSR principles) Quality Management Systems by Secretarial (Certified ISO 9001:2015) Social Impact Assessment (3rd Party impact assessment of Digital Sakhi Project) Milestone achieved in Health & Safety (HO awarded ISO 45001:2018 certification)
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L&T FINANCE 73 ESG : Building a Sustainable Future – Achievements ‘CDP Score- Climate Change 2023- ‘A-‘ Performed in top decile in the FBN Diversified Financial Services and Capital Markets Industry in the S&P Global Corporate Sustainability Assessment (Score as of January 2025) 80 ‘High footprint’ ‘Low Risk’ Ratings Communication Awards In October 2024, LTF received an ESG Risk Rating of 16.1 and was assessed by Sustainalytics to be at low risk of experiencing material financial impacts from ESG Factors* As of March 2025, LTF received an MSCI ESG Rating of 'A' Diamond Award for DEI Gamified Module ICC Social Impact Award for Project Digital Sakhi
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L&T FINANCE 74 ESG : Building a Sustainable Future – Creating Value Delivering Impact 01 Strengthened decision making, enhanced investor trust, and long-term business growth. Double Materiality to align business and sustainability risk and opportunities ESG Governance & Compliance PCAF signatory: Reinforcing commitment to transparency and enhanced disclosures aligned with global standards Strengthening Climate Accountability Lowered carbon footprint, and enhanced climate resilience in-line with carbon neutrality target 2035 Green Energy & Emission Reduction Broadened customer base, fostered economic empowerment and aligned efforts with national development goals Advancing Financial & Social Inclusion Increased female workforce participation, focused on leadership development & enhanced stronger governance and accountability. Diversity in workforce & Capacity Building Driving sustainability through circular economy adoption, compliance excellence and commitment to responsible resource utilization Recyclying, Water & Waste Management 02 03 04 05 06 Strategic Goals
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L&T FINANCE 75 Corporate Social Responsibility Social Good, Communities@scale
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L&T FINANCE 76 Meaningful CSR Impact Over the past 7 years
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L&T FINANCE 77 Index of Annexures Dominant Retail Franchise built over a decadeI Financials Other Annexures II III Asset Liability Management & Credit Ratings PLANET and Digital Update Sustainability (ESG & CSR) Board and Senior Management
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L&T FINANCE 78 Well experienced and diversified Board BOARD OF DIRECTORS Thomas Mathew T., Independent Director o Former Managing Director of Life Insurance Corporation of India. o Over 43 years of experience in strategic leadership and operational experience in the Life Insurance Industry. Sudipta Roy, Managing Director & CEO o 29 years of experience across multiple domains in BFSI such as Consumer/Retail Banking, Payments, Credit/Debit Cards, Sales Management, Marketing and Business Intelligence. Dr. Rajani Gupte, Independent Director o Current Vice Chancellor of Symbiosis International University, Pune. o Over 43 years of experience in teaching and research at prestigious institutes. S.N. Subrahmanyan, Non-Executive Director, Chairman o Current Chairman & Managing Director of Larsen and Toubro Limited. o Over 40 years of sterling experience in engineering, project management, transformative organizational leadership and a driver of digitalization. R. Shankar Raman, Non-Executive Director o Current Whole-time Director and Chief Financial Officer of Larsen and Toubro Limited o Over 40 years of experience in finance, including audit and capital markets. Dr. R. Seetharaman , Independent Director o Former CEO of Doha Bank o Over 41 years of experience in the banking industry o Awarded the prestigious "Pravasi Bharatiya Samman", the highest civilian honor for overseas Indians, by the Government of India o Named "Best CEO in Middle East" seven times in the last 15 years Nishi Vasudeva, Independent Director o Former Chairperson and Managing Director of Hindustan Petroleum Corporation Ltd o Over 43 years of experience in Petroleum Industry o First Indian to be awarded the Global CEO of the year at Platt’s Global Energy Awards 2015
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L&T FINANCE 79 Management Team Sudipta Roy Managing Director & CEO 29 yrs exp, ICICI Bank, Deutsche Bank, Citibank NA Raju Dodti COO 27 yrs exp, IDFC, Rabo, ABN Amro, Soc Gen Santosh Parab General Counsel 32 yrs exp, IDBI, IDFC, Altico Jinesh Shah CE – Urban Secured Assets & Third-Party Products 29 yrs exp, HSBC, Citibank, ICICI, GE Countrywide Abhishek Sharma CE – SME Finance 20 yrs exp, Indian Army Sonia Krishnankutty CE – Rural Business Finance 26 yrs exp, Bank of Baroda Apurva Rathod Company Secretary & Chief Sustainability Officer 23 yrs exp, Fidelity AMC, Kotak Mahindra AMC Asheesh Goel CE – Farmer Finance 31 yrs exp, Citibank NA Sachinn Joshi CFO 35 yrs exp, Aditya Birla Financial Services, Angel Broking, IL&FS Kavita Jagtiani Chief Marketing Officer 25 yrs exp, Pidilite, General Mills, ICICI Bank Ramesh Aithal Chief Digital Officer 27 yrs exp, Elastic Search BV, Zenefits, Goldman Sachs, Ness Technologies Nilesh Dange Chief Human Resources Officer 27 yrs exp, L&T Group, H&R Johnson Dr. Debarag Banerjee Chief AI & Data Officer 27 yrs exp, Jio, Intel, Lockheed Martin
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80 Thank You