History

_x000D_ L&T Finance Holdings Ltd. (LTFH) is a financial holding company that provides a focused range of financial products and services across rural housing, wholesale finance, mutual fund products, and wealth management services. LTFH is promoted by Larsen & Toubro Ltd. (L&T), a prominent Indian company interested in engineering, construction, electrical and electronics manufacturing, IT, and financial services._x000D_ _x000D_ Incorporated on May 1, 2008, as L&T Capital Holdings Ltd., the company underwent a name change to L&T Finance Holdings Ltd. on September 1, 2010. The company entered the capital market with an initial public offer in 2011, and in 2012, it ventured into housing finance through the acquisition of Indo Pacific Housing Finance Ltd. The company also acquired Fidelity's mutual fund business in India and initiated two-wheeler financing by acquiring Family Credit._x000D_ _x000D_ In the financial year 2020-21, LTFH met its funding requirements through various instruments such as NCDs, CPs, ICDs, and bank borrowings, maintaining its AAA rating from rating agencies. Notably, L&T Infrastructure Finance Company Limited and L&T Housing Finance Limited were merged with LTFH in April 2021._x000D_ _x000D_ In 2022-23, LTFH sold 100% of the paid-up share capital of L&T Investment Management Limited, a wholly-owned subsidiary, and the asset manager of L&T Mutual Fund to HSBC Asset Management (India) Private Limited on November 25, 2022._x000D_

Business Segments 

_x000D_ L&T Finance Holdings Limited is a non-banking financial company (NBFC) in India that offers a wide range of financial products and services to individuals and businesses nationwide. The company's core business segments include:_x000D_

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• Housing Finance: L&T Finance Holdings is one of India's leading housing finance companies, offering a wide range of home loan products to individuals and businesses. The company also offers loans against property and real estate finance.
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• Personal Loans: L&T Finance Holdings offers a variety of personal loans to meet the diverse needs of its customers. These loans can be used for various purposes, including debt consolidation, home improvement, wedding expenses, and medical emergencies.
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• Two-Wheeler Finance: L&T Finance Holdings is a leading provider of two-wheeler finance in India, offering a wide range of loan products to individuals looking to purchase a new or used two-wheeler.
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• Farm Equipment Finance: L&T Finance Holdings provides farm equipment finance to farmers across India, helping them purchase new tractors and other agricultural equipment.
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• SME Loans: L&T Finance Holdings offers a variety of SME loans to small and medium-sized enterprises (SMEs) to help them meet their working capital and growth requirements.
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• Micro Loans: L&T Finance Holdings provides micro-loans to low-income individuals and small businesses in India, helping them to start or expand their businesses.
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_x000D_ Subsidiaries of L&T Finance Holdings Limited_x000D_

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• L&T Infra Investment Partners Advisory Private Limited: It is a subsidiary of L&T Finance Holdings Limited that provides investment advisory services to infrastructure funds. The company has a team of experienced professionals who deeply understand the Indian infrastructure market.
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• L&T Infra Investment Partners Trustee Private Limited: This subsidiary of L&T Finance Holdings Limited provides trustee services to infrastructure funds. The company is responsible for ensuring that the interests of investors are protected and that the funds are operated under their trust deeds.
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Key Personnel 

_x000D_ Dinanath Dubhashi, Managing Director and CEO_x000D_ _x000D_ With over three decades of experience in financial services, Mr. Dubhashi has dedicated 16 years to LTFH. Since being appointed Managing Director and CEO in 2016, he has transformed the company into a cutting-edge player in retail financial services. Under his leadership, the strategic roadmap "Lakshya 2026" positions LTFH as a top-tier, digitally-enabled, and customer-focused retail financier, emphasising digital and analytics-based offerings and a robust risk management and ESG framework. Apart from his LTFH role, Mr. Dubhashi actively contributes to industry bodies, co-chairing the FICCI Committee on NBFCs since 2018 and serving on the board of FIDC._x000D_

Corporate Actions 

_x000D_ L&T Finance Holdings Limited announced a rights issue with a ratio of 17 shares for every 74 at a premium of ₹55 per share. The rights issue period is scheduled from January 21, 2021, to January 22, 2021._x000D_

Management Outlook

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• The retail disbursements witnessed a substantial increase of 69%, reaching an impressive all-time high of ₹42,065 crore. This indicates a robust performance in retail lending operations. The retail book grew from ₹45,084 crore to ₹61,053 crore during the year under review, showcasing a significant expansion in the retail loan portfolio.
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• The wholesale book, including defocused segments, experienced a decisive reduction from ₹43,257 crore to ₹19,840 crore. This strategic shift in the book's composition reflects a commitment to the Lakshya 2026 strategy.
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• The PLANET app, launched in March 2022, has achieved over 3 million downloads in its first year, emphasising a successful foray into digital channels. This digital platform spans various services, providing a comprehensive digital journey for urban and rural customers.
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• Despite a 250 bps increase in interest rates during the year, a sound ALM strategy resulted in a yearly weighted average cost of capital (WACC) reduction of 4 bps for the company. This underscores resilience and prudence in managing asset and liability dynamics.
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• L&T Finance Holdings Limited maintains a robust capital position with a Capital to Risk-Weighted Assets Ratio (CRAR) of 24.52%, with Tier I capital at 22.10%. Additionally, the company holds a liquidity buffer of ₹18,068 Cr, positioning it well to face uncertainties arising from the current macroeconomic situation.
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