Shiram Transport Finance Q2 net up 24% at Rs 479 cr

Shriram Transport Finance Company Ltd (STFC) today reported a rise of 23.6 per cent in its net profit at Rs 479.11 crore for second quarter ended September 30, 2017.
Its net profit stood at Rs 387.65 crore in the corresponding July-September quarter of the previous fiscal.
Total revenue of the company increased by 9.8 per cent from a year ago to Rs 2,979.92 crore during the second quarter of 2017-18 from Rs 2,713.59 crore earned in the same period of the previous fiscal.
The net interest income rose by 20.6 per cent to Rs 1,632.37 crore from Rs 1,352.99 crore, it said in a regulatory filing.

There was an uptick in company's bad assets with gross non-performing assets (NPAs) rising to 8.06 per cent of the gross advances during the quarter, up from 6.58 per cent a year ago. Net NPAs rose to 2.45 per cent, as a proportion of net advances against 2.04 per cent year-ago quarter.
However, STFC said the year-on-year figures on NPAs are not comparable as it transitioned to 120 days NPA recognition from last quarter of 2016-17 and for the July-September period of previous fiscal it was based on 150 days.

Meanwhile, STFC said its board of directors at the meeting held today "approved issuance of redeemable non- convertible debentures on private placement basis as per the periodical mobilisation plan of the company within the overall limit of Rs 30,000 crore approved by the shareholders".

STFC, an asset financing non-banking finance company, provides financing to buyers for pre-owned trucks ageing 5-10 years old.
Besides, it is also engaged in new commercial vehicle financing, repair loans, tyre loans and working capital finance among others.
The board of directors of the company today also declared an interim dividend of 50 per cent of Rs 5 per equity share.
Stock of STFC closed closed 2.57 per cent higher at Rs 1,197.15 on BSE.