Shriram Transport reports 11.9 % drop in profit

Shriram Transport Finance Company Ltd has reported 11.9 per cent drop in profit during the quarter ended September 30, 2014 at Rs 310 crore as compared to Rs 351.9 crore for the quarter ended September 30, 2013. Total Income has increased from Rs 2103.6 crore for the quarter ended September 30, 2013 to Rs 2261.2 crore for the quarter ended September 30, 2014.

Shriram Transport Finance Managing Director Umesh Revankar commented that the quarter has been difficult not only for the company but also for the country.

Narrating quarter as a tight one, Revankar said, old payments were not getting released, credit rates were going up, interest expenses was going up and not much of actions was there from the new Government.

In such an environment, the company's performance is good, he said.

Revankar hopes that with the diesel prices coming down and the developments in the coal sector will help the company as the infrastructure projects will speed up now. "We hope that by the end of the current fiscal our AUM will increase by around 8-10 per cent " Company's Assets Under Management (AUM) was over Rs 53,000 crore end of September.

Speaking about the Shriram Equipment Finance, subsidary of STFC, he said performance of the company was also impacted due to the same reasons, stated for STFC. PAT dropped to Rs 7.3 crore in the second quarter from Rs 23.2 crore, a year ago.

Assets under Finance by the company stood at Rs 3,392 crore up from Rs 3,211.2 crore, a year ago.

Asked whether the company would look at any fund raising for STFC and SEF, he said, at present no plans in this regard as both the companies have got enough capital and enough room to borrow, if it is required.

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