Shriram Transport Finance Q1 net up 20% at Rs 448 cr

Net interest income was up 17% at Rs 1,585 cr

Non-banking finance company, Shriram Transport Finance, reported a rise in net profit of 20 per cent in the April - June quarter owing to an increase in net interest income (NII) and growth of assets under management (AUM).
 

The net profit stood at Rs 448 crore in the June quarter as against Rs 374 crore in the 2016 June quarter. The Net Interest Margin, a key indicator of the company’s profitability, for the quarter rose to 7.51 per cent from 7.35 per cent for the previous year’s June quarter.

Net interest income, the difference between interest earned and interest expended, was Rs 1,585 crore for the current quarter. This was a 17 per cent rise against Rs 1,347 crore for the quarter ended June 2016. Other income saw a year-on-year rise of 30 per cent to Rs 22 crore in the June quarter from Rs 17 crore in corresponding period of last year.

Total assets under management as on 30th June, 2017 stood at Rs 81,612 crore as compared to Rs 74,808 crore as on 30th June, 2016.

The Shriram Transport Finance stock closed up by 5 per cent at Rs 1,018 per share on Bombay Stock Exchange.  

The capital adequacy ratio (CAR) stood at 16.26 per cent as on 31st June 2017, lower against 17.37 per cent as on 31st June 2016. Tier –I CAR saw marginal improvement at 14.89 per cent for the quarter against 14.83 per cent for last year’s corresponding quarter. The earning per share for the first quarter ended 30th June, 2017 increased by 20 per cent to Rs 19.78 as against Rs 16.49 recorded in the same period of the previous year. 

Shriram Transport Finance’s gross non-performing assets (NPA) ratio during the June quarter saw a sharp rise to 8.03 per cent from 6.38 per cent in the previous quarter. Provisions for bad debts during the quarter were Rs 573 crore against Rs 455 crore in the same period a year ago. The company’s provision coverage ratio in June was 70.81 per cent.