Shriram Transport Q4 PAT tumbles 70% to Rs 223 cr

Shriram Transport Finance Company reported 70.1% slump in consolidated net profit to Rs 223.38 crore on 7.5% increase in total income to Rs 4,173.04 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax (PBT) tanked 64.6% to Rs 343.90 crore in Q4 March 2020 as against Rs 972.24 crore in Q4 March 2019. Current tax expenses declined 26.6% to Rs 164.98 crore in Q4 March 2020 as compared to Rs 224.71 crore in Q4 March 2019. The Q4 result was declared after market hours yesterday, 10 June 2020.

On a standalone basis, the net interest income in Q4 March 2020 was Rs 1,917.92 crore, up 0.80% over Rs 1,902.76 crore in the same period of the previous year. The profit after tax stood at Rs 223.38 crore (including COVID-19 provision of Rs 909.64 crore), down 70.06% over Rs 746.04 crore recorded in the same period of the previous year.

Total assets under management (AUM) as on 31 March 2020 stands at Rs 109,749.24 crore as compared to Rs 104,482.28 crore as on 31 March 2019.

The company said business has picked up in the rural market due to harvest season and subsequent activities of Kharif sowing has started. In spite of the moratorium, the company has been able to collect from 84% , 23% and 52% borrowers n the month of March, April and May 2020 respectively.

The company had liquidity buffer of Rs 10,422 crore and SLR investments of Rs 1,824 crore as on 31 March 2020. The liquidity buffer and SLR investments as on 31 May 2020 was Rs 5,724 crore and Rs 1,801 crore respectively.

The company's board approved the resource mobilization plan for financial year 2020-21 including issuance of redeemable non-convertible debentures/subordinated debentures (NCDs) on private placement basis in tranches.

Shriram Transport Finance Company, the flagship company of the Shriram group, has significant presence in consumer finance, life insurance, general insurance, stock broking and distribution businesses.

Shares of Shriram Transport Finance Company advanced 4.04% to Rs 661.10 on BSE. The stock hovered in the range of Rs 605 to Rs 666.95 so far.

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