Tag: stfc

STFC reports 13% y-o-y increase in Q2 standalone net

Banking & Finance

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Shriram Transport Finance Company (STFC) reported a 13 per cent year-on-year increase in second quarter standalone net profit at ₹771.24 crores against ₹684.56 crores in the year-ago period.

The Board declared an interim dividend of ₹8 (80 per cent) per share of face value of ₹10 each fully paid up for FY22.

Net interest income was up about 8 per cent y-o-y at ₹2,193 crore (against ₹2,025 crore).

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Assets under management of STFC, a leading player in the pre-owned commercial vehicle financing segment, increased by about 7 per cent to ₹1,21,647 crore by September-end, mainly on the back of growth in used vehicles financing portfolio.

However, there was a de-growth in the new vehicles, business loans and working capital loans portfolio.

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Gross stage 3 (credit impaired) assets position improved to 7.82 per cent of gross advances by September-end against 8.18 per cent at June-end 2021. However, gross stage 3 assets in the reporting quarter were higher vis-a-vis 6.50 per cent a year ago.

Net stage 3 assets position too improved to 4.18 per cent of net advances by the end of Q2FY22 against 4.74 per cent in the previous quarter but up from 3.69 per cent a year ago.

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Shriram Transport Finance reports 17% decline in Q3 profit

Banking & Finance

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Shriram Transport Finance Company (STFC) reported a 17 per cent decline in third-quarter net profit at ₹728 crore against ₹879 crore in the year-ago period.

The bottom line was weighed down by a 52 per cent year-on-year (YoY) jump in provision towards impairment on financial instruments, including towards accounts impacted by Covid-19 pandemic, and 9 per cent increase in finance costs.

Net Interest Income in the reporting quarter edged up about 2 per cent to ₹2,148 crore (₹2,114 crores in the same period of the previous year).

Provision towards impairment on financial instruments rose 52 per cent YoY to ₹675 crore. Finance costs were up 9 per cent YoY at ₹2,236 crore.

“The prolonged lockdown imposed by the government due to Covid-19 pandemic has affected the Company’s business operations. The company has considered an additional Expected Credit Loss (ECL) provision on Loans of ₹224.82 crore…during the quarter,” the company said in a statement.

STFC said it has invoked a resolution plan to relieve Covid-19 pandemic related stress for eligible borrowers worth ₹2267 crore., out of which as on December 31, 2020 the company had restructured loans worth ₹309.60 crore. The balance is likely to be restructured in the next couple of quarters, it added.

Gross Non-Performing Assets (NPAs) and Net NPAs as of 31st December 2020 stood at 5.33 per cent and 3.22 per cent respectively, as against 8.71 per cent and 6.09 per cent as of 31st December 2019, the statement said.

With proforma slippages (adjusted for the Supreme Court’s interim order), Gross NPA and Net NPA ratio would have been 7.11 per cent and 4.31 per cent, respectively.

The company’s assets under management were up 5.51 per cent YoY to stand at ₹1,14,932 crore as at December-end 2020.

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