Shriram Transport Finance net up 15%

For the full year company reported net profit of Rs 1361 crore rising 8% year on year

Shriram Transport Finance Company (STFC) has reported a 15 per cent rise in net profit to Rs 355 crore for the March quarter on a standalone basis.

For the full year, it reported a net profit of Rs 1,361 crore rising eight per cent year on year. It has attributed lower growth in profits to higher non performing assets (NPA) and lower net interest margins sequentially. The gross NPA was 3.20 per cent rising 31 basis points and net NPA rising at 0.77 per cent from 0.63 per cent sequentially. “Freight rates came down in March after rising in December which had a impact on paying capacity of the borrower,” said Umesh Revankar, managing director, STFC.

The company is hopeful of 12-15 per cent growth in profits and assets under management (AUM) for 2013-14. AUM rose 23.5 per cent to Rs 49,676 crore. It has also decided to raise Rs 2,000 crore by the way of non convertible debentures this year in one or more tranches.