Shriram Transport Fin Corp net up 14% on AUM growth

Jan 26 2013, 01:33 IST
Comments 0
SummaryShriram Transport Finance Corporation on Friday reported net profit of R346 crore for the quarter ended December 31, up 14.3% from the year-ago period, due to strong growth in assets under management.

Shriram Transport Finance Corporation (STFC) on Friday reported net profit of R346 crore for the quarter ended December 31, up 14.3% from the year-ago period, due to strong growth in assets under management (AUM). The Chennai-based non-banking finance company (NBFC) reported AUM at R46,554.60 crore for the three month period, up 18.56% from the previous year.

“Our growth has mainly come from agriculture and rural business,” said Umesh Revankar, the managing director, STFC. Revankar also said that the company's net interest margin (NIM) fell by 15 basis points (bps) sequentially, to 7.52% during the three month period.

On Friday, STFC stock ended at R761 per share on Bombay Stock Exchange (BSE), up 2.31% from the previous close.

Net interest income for the company rose by 11.3% year-on-year during the quarter to R894.70 crore, the company said in a filing to BSE. Total income for the quarter stood at R1,673.49 crore, up 13% from the previous year.

"Disbursals stood at around R6,900 crore in this quarter, up 40% from the corresponding quarter last year. I don't see any great opportunities or likely growth at least for the next two quarters. Only post October there could be some good growth," Revankar said.

While small and light commercial vehicles have shown impressive growth, heavy commercial vehicles business has neither grown nor slowed down significantly, Revankar said. This was primarily because the used vehicle business in heavy commercial vehicles has been good and steady.

“But if you ask me about new vehicle sales, I don't see any hopes for growth in this quarter either as none of the major industries or sectors have shown growth,” Revankar said.

Ads by Google

More from Money & Funds

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...