Shriram City Union net up 9%

Posts Rs 127 cr net profit, total income grows to Rs 846 cr

Non-banking finance company Shriram City Union has reported a 8.8 per cent increase in net profit at Rs 127 crore for the first quarter ended June 30.

The city-based company had reported net profit of Rs 117 crore during the corresponding period of the previous year, Shriram City Union said in a statement.

Total income from operations for the first quarter ended June 30, 2014, grew to Rs 846 crore from Rs 792 crore during the year-ago period.

"In the first quarter, Shriram City expanded its small enterprise lending business as well as two-wheeler financing business due to positive sentiments following a stable government formation," Shriram City Union Finance Managing Director G S Sundararajan said.

A major highlight of the quarter's performance is that sanctions have more than doubled whereas disbursements have almost tripled compared to the first quarter of 2013-14, he said.

"In the second quarter of FY2015, we are expecting a stronger growth as the Union government unveiled a slew of measures to revitalise the Small and Medium Enterprises sector," he said.

Return on average net worth was at 15.27 per cent in the first quarter of FY'2015 as against 20.44 per cent in the corresponding quarter of the previous year. Gross NPAs as on June 30, 2014 stood at 2.87 per cent as against 2.29 per cent registered over the same period of the previous year.

Small enterprise finance business grew 12.4 per cent and the two-wheeler loan book grew by 30.7 per cent. The loan against gold, personal loans registered a decrease of 38 per cent, 20 per cent and 13 per cent respectively.