Shriram Transport Finance: Q1FY15 Result Analysis

The net profit of Shriram Transport Finance was down on a YoY basis to Rs 312.90 crore in June’14 from Rs 366.27 crore in June’13. However, it was down marginally from Rs 314.89 crore in Mar’14. The earnings per share (EPS) was also down from Rs 16.15 per share in June’13 to Rs 13.79 per share in June’14 (YoY).
 
The decrease in net profit can be attributed to increase in total expenses which rose to Rs 644.47 crore in June’14, up from Rs 568.50 crore in June’13, a rise of 13%. The expenses increased mainly on back of increase in provisions and write-offs which increased from Rs 285 crore in June’13 to Rs 351.47 crore in June’14 and on a sequential basis, it was up from Rs 317.61 crore in Mar’14.Other expenses were also up on a YoY basis to Rs 164.14 crore, up from Rs 135.07 crore.
 
The financing costs for the company were up by 12.26% to Rs 1052.76 crore in June’14 from Rs 937.76 crore in June’13. The company has already paid a dividend of Rs 4 per share on a face value of Rs 10 on July 11th, 2014. It issued non-convertible debentures (NCD) worth Rs 500 crore.
 
The income from operations stood at Rs 2149.59 crore in June’14 as against Rs 2029.28 crore in June’13.The net interest income (NII) was up and stood at Rs 1015.66 crore in June’14 as against Rs 916.95 crore in June’13 (YoY).
 
The Assets under Management (AUM) stood at Rs 57756.46 crore in June’14 as compared to Rs 55649.49 crore in June’13.
Shriram Transport Finance is a flagship company of Shriram group. It has a significant presence in consumer finance, general insurance and distribution businesses and has a customer base of approximately 11 lacs.