Shriram Transport Finance Company Ltd. expects the upcoming festival season to strengthen demand for new and used commercial vehicles, bolstering its lending for vehicle purchases.
The company also expects pre-buying demand for BS-IV vehicles and monsoon showers to aid in the next quarter, the non-bank financier's Managing Director and Chief Executive Officer Umesh Revankar told BloombergQuint in an interaction. That would also help us achieve 15 percent growth in assets under management, he said.
Revankar said demand is higher for intermediate and light commercial vehicles than heavy vehicles.
Other Highlights
- Maintains credit cost guidance of 2 percent for year ending March 2020.
- Slowdown in disbursements is a function of liquidity and demand.
- Higher cash in balance sheet to drag down margins.
Q1 Earnings Highlights (YoY)
- Net interest income rises 5.2 percent to Rs 1,943.7 crore.
- Net profit jumps 10.7 percent to Rs 634.3 crore.
Watch the full interaction here:
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