Shriram Transport Finance betting big on mining sector

STFC, largest asset financing NBFC in country, had registered a drop of 7% in its net profit at Rs 1,357.94 cr in 2013-14

Used commercial vehicle financier Shriram Transport Finance Company (STFC) is betting big on the mining sector to boost the growth prospects of the industry, according to a top official.

"We all expect second-half (of FY2014-15) to be good as there will be lot of mining action in coal sector. It will boost overall demand for commercial vehicles," STFC Managing Director and Chief Executive Officer Umesh Revankar said.

He said the mining sector is expecting decisive actions from the new government. "...This government can always go on a bolder path and have a proper plan," Revankar said.

STFC, the largest asset financing Non-Banking Finance Company (NBFC) in the country, had registered a drop of 7% in its net profit at Rs 1,357.94 crore in 2013-14.

However, he said the demand for commercial vehicles is expected to remain muted in the first half (April-September) of the fiscal.

Revankar said the demand for commercial vehicles will be boosted mainly in the second half. Mining and infrastructure are the main sectors that will boost demand, he said, adding the demand from agriculture sector is already met.

"Further increase in demand should come from infrastructure, mining and industrial development. Rail fare hike will translate into more demand for transport vehicles," Revankar said.