Shriram Finance’s net profit nearly tripled year-on-year (y-o-y) in the December quarter due to a growth in its assets under management (AUM). This is the financier’s first earnings disclosure after Shriram City Union Finance’s merger with Shriram Transport Finance in November.
The company posted a bottom line of nearly Rs 1,802 crore in the October-December period. Its AUM rose to Rs 1.8 trillion from Rs 1.2 trillion a year ago. Among overall assets, the commercial vehicles portfolio witnessed the highest growth of 51.1% y-o-y. Passenger vehicles portfolio rose nearly 18% y-o-y.
The bottom line was also aided by a rise in Shriram Finance’s net interest income. The non-bank lender’s consolidated net interest income for the third quarter rose to Rs 4,511.42 crore from around Rs 2,388 crore. Net interest margin rose to 8.52% during October-December from 6.65% a year ago.
The company’s gross stage 3 ratio fell to 6.29% as on December 31 from 8.40% a year ago. Net stage 3 ratio fell to 3.2% as on December 31 from 4.36% a year ago. Its stage 3 provision coverage ratio rose to 50.71% as on December 31 from 50.25% a year ago.
The company’s collection ratio fell to 99.3% in the December quarter from 99.86% a quarter ago. Its Covid-19 provision was Rs 1,651.4 crore as on December 31, while liquidity coverage ratio stood at 242.93%.
