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“Important Information on the Company name change to L&T Finance Limited (formerly known as L&T Finance Holdings Limited)"Click Here

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Dinanath Dubhashi

Whole-Time Director

Business Loan

The transcending point for creating sustainable business excellence – Sigma

How do we differentiate a truly great company from a good company? Most often, our judgments are based on its quarterly earnings and a few ratios. Frequently, we get lost in mediocrity and fail to look beyond these numbers. In the short term, these numbers may make a company look mediocre or excellent, quarter on quarter.

But to go from excellence to true greatness requires a transcending point. It takes more than achieving certain numbers every few quarters or in the short term to make you great. True greatness comes from winning consistently quarter on quarter, and imbibing a culture of results and not reasons.

Take the example of Michael Jordan and Usain Bolt. The all-time great basketball champion, Michael Jordan, may not have won every match but when he set foot on the field, the world believed he would give a stellar performance. Similarly, the world’s fastest man, Usain Bolt, did not win every race but is remembered for his consistent wins. In both cases, the consistency of wins overshadows the loss of a few matches or races. This is true greatness.

If we compare this to a company with a top quartile RoE, 18-20% can earn you the stamp of excellence. However, to achieve true greatness a company has to get it right quarter on quarter and year after year. This leaves no room for blaming externalities. The market will start to expect the best out of you if you do this consistently. Unsurprisingly, the results of these expectations get reflected in the value the market attaches to your business....Read More

Business Loan

Leadership in times of change

Change, although inevitable, usually brings out resistance in most of us. Interestingly, if you give it a second thought, the key stages in your life (like getting married, having children, buying a new home, switching to a healthier lifestyle, or moving into a new job) are often outcomes of you redefining the norms for yourself. However, often at an organizational level, change makes people uncomfortable and prone to finding reasons to stick to existing standards. Not everyone likes to leave his/her comfort zone and step into an unknown or unfamiliar turf. It is easy to be predictable and fit into a routine.

Organizations that pursue and embrace change are healthy, dynamic and growing continuously; while those who fear it, are stagnant. A case in point is our own organization. More than a year ago, we were in every possible business that an NBFC could be in. We weren’t market leaders in most of these and offered little value to shareholders. In April 2016, we transformed into a leaner organization with fewer lines of business and an aim to be in a dominant position in each of these. Since then, we have more than tripled the wealth of our investors. Today, our vision of a top quartile Return on Equity (RoE) by 2020 is not very far away.

Was implementing this change easy? No. We experienced resistance at many levels. What was needed was a management which was convinced about the strategy but had the gumption to see it through.

I believe a good leader is one who has the vision to carry out the transformation with integrity and not one who wants to be popular. At the end of the day, people follow or work with a leader because of his integrity and vision.... Read More

Economic Outlook

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