Profit grew by 10.9 percent year-on-year to Rs 634.3 crore and net interest income increased by 7.7 percent to Rs 1,961.7 crore in quarter ended June 2019.
Brokerages remained positive on the stock and expect 17-36 percent potential upside despite cutting price target
Net Sales are expected to increase by 22.6 percent Y-o-Y (up 0.5 percent Q-o-Q) to Rs. 2,037.8 crore, according to Motilal Oswal.
Net Interest Income (NII) is expected to increase by 9.5 percent Y-o-Y (down 2.6 percent Q-o-Q) to Rs. 1,979.9 crore, according to Kotak.
The company is entering a seasonally strong period and liquidity in the balance sheet will clearly give it an advantage over competition
Investors may find the current weakness a right opportunity to accumulate the stock
Net Interest Income (NII) is expected to increase by 18.1 percent Y-o-Y (down 2 percent Q-o-Q) to Rs. 2,019.4 crore, according to Kotak.
Sustainability of asset growth can’t be taken for granted. The steep hike in funding cost would impact interest margin as the entire hike may not be passed on to end-customers.
Shriram Transport saw a good quarter in Q3 as the disbursement to assets under management (AUM) ratio is back to its best levels while AUM growth rate is the highest in many quarters. In an interview with CNBC-TV18, Umesh Revankar, MD of Shriram Transport Finance spoke about the results and his outlook for the company.
In an interview to CNBC-TV18, Umesh Revankar, MD of Shriram Transport Finance Corporation spoke about the results and his outlook for the company.
All parts of balancesheet on the loan side have done well in the first quarter, said Romesh Sobti, MD & CEO, IndusInd Bank.
Analysts say if net interest margin comes above 7.2 percent and gross non-performing assets falls below 6.75 percent (6.58 percent in Q3) then that will be considered positive by the Street.
Non-banking finance company Shriram Transport Finance is expected to report a 4.3 percent growth in third quarter profit at Rs 391.3 crore year-on-year.
Non-banking finance company Shriram Transport Finance Corporation's second quarter profit is seen rising 16.4 percent year-on-year to Rs 393.5 crore, according to consensus estimates.
AUM growth may be under pressure due to lower commercial vehicle sales in June 2016, which was 23.1 percent in Q4FY16.
ICICI Bank reported a disappointing fourth quarter result on Friday, where profits fell 76 percent to Rs 702 crore year-on-year (YoY), majorly hit by an exceptional provisioning of Rs 3,600 crore.
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.