Shriram City Union rises 4% as June quarter profit shows sequential growth

Shares of Shriram City Union Finance rose as much as 4.43 per cent to Rs 692 on the BSE on Wednesday after the announcement of its results for the June quarter of FY21 (Q1FY21). The company's net profit declined 24 per cent on a year-on-year (YoY) basis to Rs 192.27 crore. However, the same was up 26 per cent from Rs 153.08 crore on a sequential basis.

Total income on a standalone basis for the quarter ending June 30, 2020 stood at Rs 1,414.57 crore against Rs 1,487.27 crore registered in the same period last fiscal.

For the year ending March 31, 2020 standalone total revenue from operations was Rs 5,887. 29 crore and standalone profits were Rs 1,000.52 crore, the company said in a BSE filing.

Meanwhile, in a statement, the company said during the quarter under review, assets under management was lower by six per cent annually and two per cent sequentially due to the impact of COVID-19 outbreak.

It said that during the quarter, two wheeler loanbook grew 10 per cent higher year on year, while the operating expenses were lower by 18 per cent 'annually' and 20 per cent 'sequentially'.

Commenting on the financial results, company Managing Director Y S Chakravarti said "we are glad to report that we are gradually returning to business as usual mode, with all our offices currently being operational..Disbursements began in June and we hope to increase business traction in a calibrated manner in the rest of the year."

The company's subsidiary Shriram Housing Finance during the quarter registered a growth of 23 per cent in assets under management over last year, it said.

At 9:40 AM, the stock was trading 2.93 per cent higher at Rs 682 as compared to 0.35 per cent decline in the S&P BSE Sensex. A combined 2.85 lakh shares have changed hands on the NSE and BSE so far. The stock hit its 52-week high level of Rs 617 on the BSE on May 29.