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Shriram City net up 13% at Rs 117cr on MSME, retail growth

Net profit of the non-banking finance company stood at Rs 103.42 crore in the same period of previous fiscal. Total income from operations grew 17.22 percent to Rs 788.37 crore during the quarter ended June 30 as against Rs 672.58 crore in the same period previous fiscal.

July 25, 2013 / 10:53 PM IST
 
 
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Shriram City Union, part of the diversified Shriram Group, today posted a 13.54 percent rise in net profit at Rs 117.42 crore in the first quarter of the current financial year on the back of growth in loan-book in MSME and retail segments.

Also Read: GAIL's Q1 net down 29% on high input cost, sales up 16%


Net profit of the non-banking finance company stood at Rs 103.42 crore in the same period of previous fiscal. Total income from operations grew 17.22 percent to Rs 788.37 crore during the quarter ended June 30 as against Rs 672.58 crore in the same period previous fiscal.


"We have registered healthy growth in the topline despite reducing gold book to optimum levels. The MSME segment will continue to be the growth engine for us during this year," Shriram City Managing Director G S Sundararajan said.


As per the company, despite reducing its total gold loan portfolio by around 24 per cent, it has been witnessing sound growth in retail and MSME segments.


While net interest income (NII) grew 16.56 percent to Rs 432.40 crore in Q1, net interest margin shot up 100 bps to 11.08 percent from 10.08 percent in the year-ago period.


"We don't see margin pressure as of now. In the backdrop of liquidity tightening measures by the RBI, our liquidity situation is comfortable. We hope to maintain the margin at the current levels," Sundararajan said.


The NBFC's small enterprises finance business grew 10 percent over last quarter and two wheelers business expanded 7 percent over the same period. However, loan against gold, auto and personal loans witnessed dip during the quarter.

"We hope to grow our loan-book by around 17 percent in the current financial year," Sundararajan said. On the asset quality front, gross NPAs increased to 2.29 percent by the end of first quarter of FY14 as against 1.46 percent reported a year ago.

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