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Shriram Transport Finance Company's net profit may slip 3 percent at Rs 307 crore in March quarter, down 3 percent from Rs 317 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, net interest income may fall 17.5 percent at Rs 1275 crore in Q4 against Rs 1085 crore on annual basis.
Umesh Revankar, MD of Shriram Transport Finance Company says credits the surge to struggling rural economy and low wages which in turn has a negative impact on purchasing power.
Umesh Revankar, MD, Shriram Transport Finance says the company‘s gross non-performing assets (GNPA) stood at 4.18 percent due to rural stress caused by deficient rainfall in pockets of Maharasthra, Telagana, Karnataka and Uttar Pradesh.
Gross non-performing loans and commentary on equipment finance will be key parameters to monitor. Equipment finance merger is likely to be completed by Q4FY16. Hence, reported standalone GNPL may be only from commercial vehicle business.
All eyes will be on consolidated earnings as it included the equipment finance subsidiary that had been the key disappointment in March quarter with consolidated profit falling over 70 percent and equipment finance subsidiary recording over Rs 230 crore loss with gross non-performing loans jumping to 15.7 percent (against 2.9 percent Q-o-Q).
In an interview to CNBC-TV18, Revankar said the company has infused Rs 100 core in equipment finance business. The non-banking finance company added around 80 branches in FY15 and plans to add another 80 in FY16.
Nischint Chawathe of Kotak Institutional Equities expects the housing finance companies from the NBFC space to out perform others.
In an interview to CNBC-TV18, MD Umesh Revankar said the demand has been little better in Q2, compared to Q1, mainly on the back of better monsoon and an increase in rural demand. He sees a major demand pick-up only in H2.
The net interest margins for the quarter ended December stood at 6.51 percent against 6.73 percent earlier quarter on back of increase in cost of borrowing and operational expenses but Revankar does not see margins coming under pressure in the near-term.
"We all are going through tough environment. Somehow, we are still holding our asset quality. Due to weak economic indicators, we have seen some moderation in the manufacturing and bulk goods transportation," Umesh Revankar, MD, Shriram Transport Finance told moneycontrol.com.
Shriram Transport Finance's first quarter net interest income (NII) is seen going up by 16 percent to Rs 934 crore in June quarter from Rs 802 crore reported in a year ago period.
Shriram Transport Finance – a financier for small truck operators, has of late seen some signs of stress on its credit quality during the January – March quarter. This has lead to some contraction in its net interest margin.
Non-banking finance company Shriram Transport Finance will declare its fourth quarter (January-March) results today. Analysts on an average expect the company's profit after tax to grow by 14 percent year-on-year to Rs 350 crore, according to CNBC-TV18 poll.
Kotak Securities has come with its March`13 quarterly earning estimates for banking & NBFCS sector. The research firm expects fresh slippages to remain stable QoQ with positive bias for banks under their coverage.
Motilal Oswal has come with its March`13 quarterly earning estimates for financial sector. The research firm expects reforms and monetary easing to continue, thereby growth is expected to revive gradually.
Motilal Oswal has come with its December`12 quarterly earning estimates for banking sector. The research firm expects RBI to start cutting interest rates from 4QFY13.
In an interview to CNBC-TV18 Suresh Ganapathy of Macquarie reviewed the second quarter financial performance of various public and private sector banks.
In an interview to CNBC-TV18, Umesh Revankar, MD, Shriram Transport spoke about the performance of the company in the second quarter. The consolidated net profit rose from 313 cr to 363 cr (YoY) and Net Interest margins (NIMs) rose to 7.67%. The company may add 3000-4000 cr in Securitisation by Q4.
Motilal Oswal has come with its September quarterly earning estimates for Financials sector. According to the research firm, banking coverage universe is expected to report healthy PAT growth of 19% YoY, largely driven by 23% YoY profit growth from private sector banks.
In an interview with CNBC-TV18, Umesh Revankar, Managing Director of Shriram Transport Finance Company said their performance has been steady, taking into consideration the weak economic environment.
Prabhudas Lilladher has come with its June quarterly earning estimates for banking & financial services sector. According to the research firm, Q1FY13 will be a relatively strong operating quarter for financials with ~22%/ 21% y/y PPOP and net profit growth.
Parag Sharma , chief finance officer, Shriram Transport Finance Company says that the year has been tough for the company and mining losses accounted for Rs 80 crore.
Commercial vehicle financing company Shriram Transport Finance is expected to report a fall of just 1% year-on-year in its profit after tax of Rs 337 crore for the fourth quarter of FY12, according to CNBC-TV18 poll.
Prabhudas Lilladher has come with its March quarterly earning estimates for banking & financial services sector. Asset quality will continue to remain the focus area for banks in Q412.
Due to sluggish truck demand, Shriram Transport Finance saw margins falling 80 basis points to 7.39% in the third quarter of FY12.