L&T Finance has recorded a positive trend in its year-on-year performance for Q4. The company's net profit rose 11% to Rs 554 crore from Rs 501 crore in the same quarter last year. This growth is attributed to healthy net interest margin (NIM) and fee income. However, it is important to note that L&T Finance's profit has declined sequentially since Q3FY24. This difference of Rs 86 crore can be explained by the one-time, precautionary measure taken in Q4FY24 to create a provision of Rs 175 crore for the Securities Receipts (SR) portfolio. This reflects L&T Finance's commitment to long-term financial stability, even if it impacts short-term profitability.
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