Shriram Transport climbs after Q4 PAT jumps 44% YoY

Shriram Transport Finance Company jumped 6.06% to Rs 1212.90 after the company's standalone net profit rose 43.87% to Rs 1,086.13 crore on 13.11% increase in total income to Rs 5,087.59 crore in Q4 March 2022 over Q4 March 2021.

The net interest income for the fourth quarter ended 31st March 2022 increased by 22.16% to Rs 2,627.82 crore as against Rs 2,151.12 crore in the same period of the previous year.

"The significant increase in economic activities post easing of lockdown by the state governments due to Covid-19 had resulted in improvement in business operations of the company," Shriram Transport Finance Company said in a statement.

The collections for Q1 FY22, Q2 FY22, Q3 FY22 and Q4 FY22 were 91.04%, 99.03%, 101.17% and 104.28% of the demand respectively. Liquidity Coverage Ratio was 148.70% as on 31 March 2022. The liquidity buffer and SLR investments was Rs 17709 crore and Rs 3154 crore, respectively. Cost to income ratio stood at 20% in Q4 FY22 compared with 21.96% in Q4 FY21.

As a matter of prudence, during the quarter, the company has written off Rs 799.92 crore by utilising the ECL provision created as management overlay on account of COVID-19. The ECL provision of Rs 2052.58 crore crore is retained by the company as at 31 March 2022 towards management overlay on account of COVID-19.

Total assets under management as on 31 March 2022 was Rs 127,040.86 crore compared with Rs 117,242.83 crore as on 31 March 2021.

The net interest income for the year ended 31 March 2022 increased by 14.07% to Rs 9,316.06 crore as against Rs 8,167.10 crore recorded in the previous year. The profit after tax increased by 8.87% to Rs 2,707.93 crore as against Rs 2,487.26 crore recorded in the previous year.

Shriram Transport Finance Company, the flagship company of the Shriram group, is the largest asset financing NBFC in the country. It is a holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets. It has PAN India presence with 1,854 branch offices. Based at Mumbai, it has a live customer base of approx. 21.1 lacs.

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