Hinduja Leyland Finance Improves Asset Quality in FY25

16 June 2025

• Financial Performance (FY25 vs FY24): Hinduja Leyland Finance posted a strong 34.8% YoY growth in total income to ₹6,281 Cr in FY25, up from ₹4,659 Cr, driven by higher interest income (₹5,364 Cr vs ₹4,011 Cr), fee income, and gains on financial instruments. This robust revenue expansion also supported profitability. Profit Before Tax (PBT) rose 23.6% YoY to ₹1,040 Cr from ₹846 Cr. However, tax expenses increased to ₹266 Cr from ₹205 Cr. As a result, Profit After Tax (PAT) rose 21.5% YoY to ₹774 Cr, compared to ₹636 Cr in FY24. EPS improved to ₹14.46 from ₹11.89, reflecting stable earnings growth.
• Operational Metrics (FY25 vs FY24): Net Profit Margin declined to 12.3% in FY25, from 13.7% in FY24, reflecting cost and credit pressures. Gross NPA (Stage III assets) stood at 3.63%, down from 4.35% in FY24. Net NPA decreased to 2.13%, decline from ~2.7% in FY24, indicating improvement in asset quality. Provision Coverage Ratio (PCR) was 42.1%, providing a moderate cushion against bad loans. Loan Book grew by 24.3% YoY to ₹47,854 Cr from ₹38,463 Cr. Total Assets surged 26.0% to ₹56,532 Cr from ₹44,877 Cr. Net Worth expanded by 27.6% to ₹8,695 Cr from ₹6,811 Cr, bolstered by retained earnings.
• Strategic Developments: FY25 was a year of steady growth and operational improvement for Hinduja Leyland Finance. Despite a slight dip in profit margins due to higher funding and credit costs, the company demonstrated resilience through strong balance sheet expansion and improved asset quality. The reduction in both Gross and Net NPAs signals enhanced risk management and more effective recovery efforts. The loan book and total assets witnessed robust growth of 24.3% and 26.0% respectively, reflecting sustained lending momentum. While profitability came under pressure, HLF’s stable asset quality and healthy capital position provide a solid foundation for future growth.