Shriram Transport Finance today posted a 13.45 per cent decline in December quarter net profit at Rs 324.85 crore due to a rise in stressed assets.
The Chennai-headquartered non-banking finance company had posted a post-tax net of Rs 375.33 crore on a consolidated level for the corresponding period last fiscal.
Its net interest income grew to Rs 1,008 crore as against Rs 948.41 crore in the same period year.
Managing director and chief executive Uday Revankar attributed the dip in profit to rise in stress levels and interest costs for the customers, but maintained that given the stress levels in the economy, such dips are expected.
The company's gross non-performing assets ratio shot up to 3.56 per cent for the reporting quarter as against 2.89 per cent in the year-ago period at 3.27 per cent for the quarter ended September.
Revankar said truck owners, the biggest customer base of the company, are facing troubles on multiple fronts, and added the trucker has to pay more due to fuel cost increases, whereas the realisation is not getting improved as the freight rates are stagnant.
The company also reported a decline in the net interest margin during the quarter, which came in at 6.51 per cent for the quarter, as against 6.75 per cent in December 2012.
Revankar said he expects the situation to improve only after the general elections, once the economy fires up.
The company scrip moved up 1.52 per cent to close at Rs 618 at the BSE today.
