Are L&T Finance Ltd latest results good or bad?

L&T Finance Ltd has reported its financial results for the quarter ending June 2025, showcasing a mix of operational trends. The company achieved net sales of Rs 4,259.57 crore, representing a year-on-year growth of 12.56%, which is the highest sales figure recorded in the last five quarters. This indicates a positive trajectory in sales performance. Additionally, the operating profit reached Rs 2,619.62 crore, with an operating profit margin of 61.50%, reflecting enhanced operational efficiency.
Profit before tax (PBT) was reported at Rs 943.19 crore, while profit after tax (PAT) stood at Rs 701.10 crore, both marking the highest levels in the past five quarters. The earnings per share (EPS) also saw an increase to Rs 2.81, suggesting improved profitability for shareholders.

However, the company faced challenges with its annual operating cash flow, which fell to Rs -16,607.68 crore, indicating a decline over the past three years. Furthermore, the year-on-year growth rates for consolidated net profit and net sales have shown a downward trend compared to the previous year, with net profit growth at 2.27% versus 29.11% in June 2024, and net sales growth down from 17.41% in the same period.

It is also noteworthy that L&T Finance Ltd experienced an adjustment in its evaluation over the last three months. Overall, the financial results reflect a combination of strong sales and profitability metrics alongside some operational challenges.