Shriram Transport Finance Q3 PBT up 20.6% to Rs 1,186 cr; stock ends flat

Shriram Transport Finance Company Ltd’s profit before tax (PBT) rose by 20.6 per cent at Rs 1,186.3 crore in third quarter ended December 2019 (Q3FY20) on rise in other income and fall in loan losses and provisions.

It had posted a PBT of Rs 983.9 crore in quarter ended December 2018 (Q3FY19). Its stock closed flat at Rs 986.7 per share on BSE.

The Net Interest Income (NII) in reporting quarter rose by just 1.36 per cent at Rs 2,055.42 crore as against Rs. 2,027.87 crore in Q3FY19. The Net interest Margin on asset under management (AUM) declined by 30 basis points to 7.14 per cent in Q3FY20 from 7.44 percent in Q3FY18.

The other income rose by about 250.5 per cent to Rs 64.4 crore in Q3FY20 from Rs 18.4 crore in same quarter of last fiscal.

Its total assets under management rose by 4.93 per cent to Rs 1,08,931 crore at the end of December 2019 as against Rs 1,03,817 crore in the same quarter previous year.

Its loan losses and provisions fell by 30.15 per cent to Rs 444.3 crore in Q3FY20 from Rs 636.2 crore a year ago.

The capital adequacy ratio (CAR) improved to 20.6 per cent in December 2019 from 19.72 per cent in December 2018.