Shriram Transport Finance Q2 net profit down 11% to Rs 685 crore
The non-banking lender added that the actual impact on ECL provisions may vary due to prevailing uncertainty caused by the pandemic.
October 29, 2020 / 10:45 PM IST
Shriram Transport Finance Co Ltd (STFC) on Thursday reported a 10.5 percent decline in net profit at Rs 684.56 crore in July-September quarter of 2020-21.
The non-banking finance company had posted a net profit of Rs 765.05 crore in the same quarter of 2019-20. Total income rose 4.68 percent to Rs 4,351.26 crore during the quarter under review from Rs 4,156.92 crore in the same period a year ago, STFC said in a regulatory filing.
However, net interest income fell 1.67 percent to Rs 2,021.86 crore from Rs 2,056.11 crore in the year-ago quarter. The company's assets under management (AUM) stood at Rs 1,13,345.93 crore at the end of September 2020, up 4.83 percent from Rs 1,08,120.24 crore a year ago.
STFC said the prolonged lockdown due to COVID-19 pandemic has affected its business operations and it has considered an additional expected credit loss (ECL) provision on loans of Rs 416.65 crore and Rs 1,372.80 crore on account of pandemic during the quarter and half year ended September 30, 2020, respectively. "As at September 30, 2020, additional ECL provision on loan assets as management overlay on account of COVID-19 stood at Rs 2,282.44 crore," it said.
The non-banking lender added that the actual impact on ECL provisions may vary due to prevailing uncertainty caused by the pandemic. The company's management is continuously monitoring the situation and the economic factors affecting the operations of the company, it added.
STFC said its board of directors have declared an interim dividend of Rs 6 (60 percent) per share and the record date for entitlement has been fixed as November 10, 2020. The company is mainly engaged in the business of finance for commercial vehicle industry.
Shares of the company on Thursday closed 1.84 percent lower at Rs 698.75 apiece on the BSE.