Shriram Transport Finance Co's Q3 net profit dips 6% to Rs 681 crore

Revenue from operations during the quarter under review was up 6% to Rs 4,661 crore

Shriram Transport Finance Company (STFC) has posted a six per cent decline in net profit for the October-December quarter of FY22 to Rs 681 crore, from Rs 728 crore during the same period of the preceding financial year.

The company's revenue from operations during the quarter under review was Rs 4,661 crore, up six per cent over Rs 4,381 crore during the Q3 of 2020-21.

The company said in a statement that it has revised the process of NPA classification to flagging of the borrower accounts as overdue as part of the day-end processes for the due date. STFC's gross stage 3 assets increased by 27 per cent to Rs 10,358 crore as against Rs 8,170 crore during the same quarter last fiscal.  

The company's net stage 3 assets also increased by 7 per cent during the period under review. Had the Company followed the earlier method, the profit before tax for the quarter and nine months ended December 31, 2021 would have been higher by Rs 355 crore, it said.

STFC's net interest income also saw an increase of 11 per cent to Rs 2,388 crore, as against Rs 2,148 crore during the same period last fiscal. STFC's total assets under management was also up by 8 per cent to Rs 1,24,602 crore as compared to Rs 1,14,932 crore by the end of December 2020.