Small business financier Shriram City Union Finance (Shriram City), part of over Rs 1 lakh-crore Shriram Group, has posted a net profit of Rs 226 crore for the third quarter.
Small business financier Shriram City Union Finance (Shriram City), part of over Rs 1 lakh-crore Shriram Group, has posted a net profit of Rs 226 crore for the third quarter, a growth of 43% over Rs 158 crore reported in the same quarter of the previous financial year. The company’s total revenue for the quarter stood at Rs 1,353 crore, against Rs 1,156 crore in the corresponding period last year, an increase of 17%. The company said in a statement that during Q3, the net interest income grew 20.1% to Rs 916 crore, while disbursements stood at Rs 6353 crore, higher by 23.5%. Shriram City’s assets under management (AUMs) stood at Rs 26,077 crore, up 15.7%. R Duruvasan, MD & CEO, said: “This has been a reasonably strong quarter for us in which we saw growth with reduced credit costs – something that we had guided for after our results in the previous quarter when we had mentioned that demonetisation-related problems have already been baked in. Our bottom line is also substantially higher, even without the one-time effect of the profit of Rs 15 crore owing to the sale of investments in the equity of a Bengaluru-based entity.” Shriram City, a key player in the retail financing space, offers multiple loan products to small business owners and for acquiring assets such as two-wheelers, commercial vehicles, passenger vehicles and homes. It also offers loans against gold ornaments and for personal consumption.