Shriram Transport Finance Company Ltd. posted a slightly better-than-anticipated quarterly profit backed by an improvement in asset quality.
Net profit grew 23.6 percent year-on-year to Rs 479 crore for the three-month period ending September, the company said in an exchange filing today. This was slightly higher than the Rs 454 crore consensus estimate of analysts tracked by Bloomberg. Revenue fell 9.8 percent year-on-year to Rs 2,978.9 crore.
Net interest income rose 24.1 percent year-on-year to Rs 1,678.9 crore. This also beat the estimates of Rs 1,488 crore. Its assets under management improved 13.5 percent year-on-year to Rs 85,463 crore.
Total bad loans fell 4 basis points to 8.06 during the quarter, sequentially. Net non-performing assets too dropped 4 basis points to 2.45 percent compared to previous quarter. Provision coverage ratio expanded 84 basis points during the quarter to 71.33 percent from the same period last year.
The company announced an interim dividend of Rs 5 per share. This will be paid up to members of the company as on Nov. 13, the non-banking finance company said in a separate press release.
Shares of rose as much as 3.77 percent to Rs 1,212 apiece post the earnings announcement, before ending the day at Rs 1,197.30.
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