Shriram Transport Q1 PAT Jumps 468% YoY

Shriram Transport Finance Company's standalone net profit jumped 468% to Rs 965.27 crore on 10.7% increase in total income to Rs 5,149.26 crore in Q1 FY23 over Q1 FY22.

Profit before tax surged 456.8% year on year to Rs 1,306.88 crore in the quarter ended 30 June 2022. Operating profit rose 26.15% YoY to Rs 2,112.04 crore during the period under review.

Total expenses slipped 13% to Rs 3,842.38 crore while employee benefits expenses rose 15% to Rs 278.31 crore in Q1 FY23 over Q1 FY22.

The Net Interest Income for the first quarter ended 30 June 2022 increased by 25.35% to Rs 2,641.74 crore as against Rs 2,107.45 crore in the same period of the previous year.

Total assets under management as on 30 June 2022 stood at Rs. 130,688.86 crore as compared to Rs 119,301.37 crore as on 30 June 2021.

The collections for Q1 FY23, Q4 FY22 and Q1 FY22 were 101.45%, 104.28%, and 91.04% of the demand respectively. Liquidity Coverage Ratio was 191.99% as on 30 June 2022. The liquidity buffer and SLR investments was Rs 18020 crore and Rs 3248 crore, respectively. Cost to income ratio stood at 19.46% in Q1 FY23 compared with 19.11% in Q1 FY22.

The significant increase in economic activities post easing of lockdown by the state governments due to COVID -19 had resulted in improvement in business operations of the company. During the quarter, the company has written off loans outstanding amounting to Rs 216.18 crore by utilising the ECL provision created as management overlay on account of COVID-19. The ECL provision of Rs 1,836.39 crore is retained by the company as at 30 June 2022 towards management overlay on account of COVID19.

Shriram Transport Finance Company, the flagship company of the Shriram group, is the largest asset financing NBFC in the country. It is a holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets. It has PAN India presence with 1,854 branch offices. Based at Mumbai, it has a live customer base of approx. 21.1 lacs.

The scrip ended 0.91% higher at Rs 1,462.45 on the BSE.

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