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Shriram Transport Finance Q1 net profit jumps to Rs 965 crore

Net Interest Income (NII) increased by 25.35 per cent to Rs 2,641.74 crore. The same stood at Rs 2,107.45 crore in the same period previous year. Net Interest Margins (NIM) was at 6.91 per cent as against 6.38 per cent.

July 28, 2022 / 10:55 PM IST

Non-bank financing company Shriram Transport Finance Company (STFC) on Thursday reported a steep jump in its standalone profit after tax at Rs 965.27 crore in the June quarter on lower provisioning. The company had reported a Profit After Tax (PAT) of Rs 169.94 crore on a standalone basis in the year-ago quarter.

Its Vice Chairman and Managing Director Umesh Revankar said Q1 FY23 cannot be compared with the same quarter of the previous fiscal, which was affected by Covid. "Disbursements were quite strong. Last year during the first quarter, we had heavy provisioning because of Covid and it was not necessary this year," Revankar told reporters.

Net Interest Income (NII) increased by 25.35 per cent to Rs 2,641.74 crore. The same stood at Rs 2,107.45 crore in the same period previous year. Net Interest Margins (NIM) was at 6.91 per cent as against 6.38 per cent.

Gross stage 3 asset or Non-Performing Assets (NPAs) improved to 7 per cent as against 8.18 per cent and net stage 3 stood at 3.52 per cent from 4.74 per cent. Loan losses and provisions dipped by 44.07 per cent to Rs 805.16 crore during the quarter under review.

Its incremental borrowing cost stood at 8.5 per cent as on June 30, 2022. Revankar said the company is yet to see any impact of an increase in borrowing cost on its balance sheet.

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The asset under management rose 9.55 per cent to Rs 1,30,688.86 crore as compared to Rs 1,19,301.37 crore. The shares of the company closed 7.89 per cent up at Rs 129.20 apiece on BSE.
PTI
first published: Jul 28, 2022 10:55 pm
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