Shriram Transport Fin Q3 net doubles

Shriram Transport Finance has reported a net profit of Rs 107.10 crore for the third quarter ended December 31, 2007, as against Rs 54.98 crore in the same period of the previous year, a rise of 94.8 per cent.

Total income during the quarter shot up by 78.98 per cent to Rs 660.8 crore as against Rs 369.21 crore in the year-ago period. Total expenditure increased by 39 per cent to Rs 130.91 crore compared with Rs 94.28 in the corresponding period a year ago.

Total disbursement stood at Rs 3,500 crore during the period. After the preferential allotment of Rs 384 crore last month, the company's capital adequacy has improved to 20 per cent.

"The demand for used commercial vehicles has remained intact, which constitutes 70 per cent of our business. However, in the new medium and heavy vehicles, there was a degrowth by 10 per cent for the sector, which is likely to improve this quarter. We have been able to maintain our cost of funds at 11 per cent for the quarter," said Managing Director R Shridhar.

Revenue for the nine months ended December 31, 2007, surged by 75.11 per cent to Rs 1713.29 crore compared with Rs 978.38 crore on a y-o-y basis. The profit after tax also rose by 93.18 per cent to Rs 274.37 crore as against Rs 142.03 crore recorded in the same period a year earlier.

Shriram Transport Finance is the largest asset financing NBFC in the country with assets under management at Rs 16,700 crore as on December 31, 2007.