Shriram City today reported over 78 per cent decline in standalone net profit to Rs 12.04 crore in the fourth quarter ended March 31, due to trailing affects of demonetisation and RBI prudential norms on bad loans. Chennai-based Shriram City Union Finance had posted a profit of Rs 55.49 crore in the corresponding quarter of 2015 -16.
March quarter net profit were sharply lower from Rs 157.74 crore in the preceding December quarter, even though note ban impact was profound at that time. “Two things have impacted our business, one is due to demonetisation and secondly we have moved to 120 days for non-performing assets (NPAs) recognition from 150 days earlier,” Y S Chakravarti, Executive Director & COO of the company said in an interaction.
On the collection side, the company still has to recover around Rs 80-90 crore, he added. He also said impact of demonetisation seemed to be over as the company’s business picked up quite nicely in March.
The company’s earnings during the fourth quarter of 2016- 17 rose to Rs 1,107.12 crore from Rs 975.70 crore in the same quarter a year ago. For full fiscal 2016-17, the company’s standalone net profit was up by 5 per cent from year ago to Rs 556 crore, a company statement said today. “Income from operations (full fiscal) stood at Rs 4,432 crore, higher by 15.6 per cent.”
The company, which is engaged in retail loans, particularly into SME and two-wheeler financing, saw full year net interest income going up by 18.2 per cent to Rs 2,897 crore. The assets under management (AUM) as on March 31, 2017 stood at Rs 23,132 crore, up 18.2 per cent, it said. Stock of Shriram City Union Finance closed 0.93 per cent down at Rs 2,161.85 a piece on BSE.