Shriram Transport Finance fourth quarter net profit up 44%, NII rises

Shriram Transport Finance (STFC) has posted a 44 per cent increase in net profit in the fourth quarter of the financial year 2021-22 to Rs. 1,086.13 crore, compared to Rs. 754.93 crore in the same period the previous year.

The company’s Net Interest Income increased by 22.16 per cent to Rs. 2,627.82 crore as against Rs. 2,151.12 crore. The earning-per-share (basic) for the fourth quarter increased by 31 per cent and stood at Rs. 40.15 as against Rs. 30.65 recorded in the same period of the previous year. On March 31, STFC’s total assets under management was Rs  127,040.86 crore as compared to Rs. 117,242.83 crore as on March 31 last year.

For the financial year 2021-22, profit after tax increased by 8.87 per cent to Rs. 2,707.93 crore as compared to Rs. 2,487.26 crore recorded in the previous year. The Net Interest Income for the year also increased by 14.07 per cent to Rs. 9,316.06 crore as against Rs. 8,167.10 crore recorded in the previous year.

Following central bank norms, the company has revised its process of non-performing asset classification to flag borrower accounts as overdue as part of the day-end processes for the due date. “Had the Company followed the earlier method, the profit before tax for the year ended on March 31, 2022 would have been higher by Rs. 407.65 crore,” a statement said.