Shriram Transport Finance Q2 results: Net profit down 11% to Rs 685 cr

NEW DELHI: Shriram Transport Finance Co Ltd (STFC) on Thursday reported a ten.5 per cent decline in net profit at Rs 684.56 crore in July-September quarter of 2020-21.

The non-banking finance firm had posted a web profit of Rs 765.05 crore in the identical quarter of 2019-20.

Total revenue rose 4.68 per cent to Rs 4,351.26 crore throughout the quarter beneath overview from Rs 4,156.92 crore in the identical interval a 12 months in the past, STFC mentioned in a regulatory submitting.

However, net interest income fell 1.67 per cent to Rs 2,021.86 crore from Rs 2,056.11 crore within the year-ago quarter.

The firm’s property beneath administration (AUM) stood at Rs 1,13,345.93 crore on the finish of September 2020, up 4.83 per cent from Rs 1,08,120.24 crore a 12 months in the past.

STFC mentioned the extended lockdown due to COVID-19 pandemic has affected its enterprise operations and it has thought of an extra anticipated credit score loss (ECL) provision on loans of Rs 416.65 crore and Rs 1,372.80 crore on account of pandemic throughout the quarter and half 12 months ended September 30, 2020, respectively.

“As at September 30, 2020, additional ECL provision on loan assets as management overlay on account of COVID-19 stood at Rs 2,282.44 crore,” it mentioned.

The non-banking lender added that the precise influence on ECL provisions might fluctuate due to prevailing uncertainty brought on by the pandemic.

The firm’s administration is repeatedly monitoring the scenario and the financial elements affecting the operations of the corporate, it added.

STFC mentioned its board of administrators have declared an interim dividend of Rs 6 (60 per cent) per share and the document date for entitlement has been fastened as November 10, 2020.

The firm is principally engaged within the enterprise of finance for business car trade.

Shares of the corporate on Thursday closed 1.84 per cent decrease at Rs 698.75 apiece on the BSE.

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