Shriram City Union Finance reports Q2 net profit down 10% at Rs 275 cr

Shriram City Union Finance on Monday reported a nearly 10 per cent fall in consolidated net profit at Rs 275.46 crore for the quarter ended September.

The non-banking finance company had posted a net profit of Rs 304.94 crore in the same period a year ago. Sequentially, the net profit was up by 39 per cent from Rs 198.43 crore in first quarter of this fiscal.

Total revenue from operations, however, fell to Rs 1,507.50 crore in the July-September period of 2020-21 from Rs 1,561.60 crore in same quarter of 2019-20, Shriram City Union Finance said in a regulatory filing.

The assets under management (AUM) as of September 30, 2020 fell to Rs 27,537 crore from Rs 29,722 crore earlier.

With business revival and upcoming festivals, a larger proportion of small and medium enterprises (SME) and gold AUM is expected to increase in the coming quarters, it said.

Notwithstanding the cessation of moratorium on August 31, 2020, gross NPAs were sequentially lower at 6.67 per cent compared to 7.28 per cent in the previous quarter, the company added.

Net NPA stood at 3.16 per cent.

The collection efficiency improved to 95 per cent in September, resulting in better asset quality and lower impairment by 35 per cent quarter-on-quarter.

Additional COVID-related provisioning has been moderated to Rs 101 crore in Q2, resulting in aggregate provisions of Rs 707 crore, Shriram City Union Finance said.

Stock of the company closed at Rs 821.90 apiece on BSE, up 3.09 per cent.