L&T Finance Holdings, a subsidiary of Larsen and Toubro, reported 8 per cent rise

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in net profit to Rs 220.5 crore for the half year ended September 30 on a consolidated basis compared with Rs 202.9 crore for the same period of previous year.

“Net profit was low due to losses from the micro-finance business. Going forward, we see the micro-finance environment improving,” N Sivaraman, president and whole-time director of L&T Finance Holdings, told Financial Chronicle.

Net profit for the half year was declared after accounting for a loss before tax of Rs 48.40 crore compared with a profit before tax of Rs 29.70 crore for the same period in FY11, from its micro-finance business.

This is the first time that L&TFH is announcing its performance after its listing, subsequent to its initial public offering in August. Income from operations for the six months ended September 30 stood at Rs 1,335.50 crore compared with Rs 936.68 crore in the same period a year ago.

Loans and advances totalled Rs 21,395.7 crore as of September 30, a growth of 53.5 per cent and 18.1 per cent respectively from Rs 13,936.10 crore as of September 30, 2010 and Rs 18,112.1 crore as of March 31, 2011.