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Shriram City PAT up 5% to Rs 293 crore; Q3 witnesses best ever disbursements

Collection efficiency stood at 103% in the quarter. Asset quality continued to show improvement

Total income stood at Rs 1,702 crore as against Rs 1,439 crore in the year-ago period, logging an increase of 18%.
Total income stood at Rs 1,702 crore as against Rs 1,439 crore in the year-ago period, logging an increase of 18%.

Shriram City Union Finance, part of the Shriram Group, on Friday reported standalone profit after tax (PAT) of Rs 293 crore in Q3FY22, close to 5% higher than Rs 280 crore in the same quarter last year. Total income stood at Rs 1,702 crore as against Rs 1,439 crore in the year-ago period, logging an increase of 18%.

Shriram City reported its best-ever disbursements at Rs 7,630 crore, up 23% y-o-y and 19% sequentially, while AUM rose 13% y-o-y to Rs 32,247 crore. Collection efficiency stood at 103% in the quarter. Asset quality continued to show improvement sequentially, with gross stage 3 levels at 6.61% (6.86% in Q2FY22), while restructured book stood at Rs 315 crore, representing less than 1% of AUM. The company has liquidity back-up of Rs 5,027 crore as of the end of Q3FY22.

YS Chakravarti, MD & CEO, Shriram City, said: “The last two quarters we have witnessed a strong revival in pent-up demand from the ‘Aam Aadmi’, who has been the hardest hit by the pandemic. MSMEs had faced stress in the last two years, but things are slowly turning around and businesses are on the road to recovery. The Union Budget 2022 is also likely to lay emphasis on rural and MSMEs schemes along with environment-friendly policies and that benefit will trickle in, in FY23.”

He said the company has partnered with EV manufacturers and has a focused strategy to grow that segment.

The company’s subsidiary, Shriram Housing Finance, had a stellar quarter, with AUM growing 47% driven by the widening distribution network in south India, and with affordable housing taking centre stage in the housing finance landscape. Shriram Housing Finance is well placed to capture the underpenetrated small ticket housing loan segment to grow its AUM to Rs 10,000 crore by FY24, he said.

The merger with Shriram Transport Finance Company is expected to be completed in 2022.

SME loans contributed 45% of the total AUM and 26% of the disbursement at Shriram City in Q3FY22. The company saw strong loan disbursements sequentially in two-wheeler loans, which contributed 29% of total disbursals. It has expanded its gold loans business in north India. Gold disbursals contributed 22%, while personal loans, showing a strong rise year-on-year, contributed 15% of the disbursements, said a company release.

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