Shriram Transport Finance posted good Q1 result

Shriram Transport Finance is the largest asset financing NBFC in India. It is a part of the "SHRIRAM" conglomerate which has significant presence in financial services viz., commercial vehicle financing business, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance products and units of mutual funds. Apart from these financial services, the group is also present in non-financial services business such as property development, engineering projects and information technology.

Recently, Shriram Transport Finance announced its Q1FY16 results, the total income from operations rose by 1.77 per cent, and stood at Rs 2352 crore compared to Rs 2311 crore on sequential basis. The total expenses of company rose by 4.75 per cent to Rs 681 crore. EBITDA rose by 0.6 per cent to Rs 1680 crore compared to Rs 1670, EBITDA margin contracted by 83 basis points to 71.43 per cent. The finance cost slightly increased by 0.7 per cent. The net profit of the company increased by 1.38 per cent to Rs 311 crore against Rs 316 crore Q-o-Q basis.

The net revenue of the company rose by 16.66 per cent to Rs 2352 crore against Rs 2016 crore year on year basis. The Net Interest Income increased by 19 per cent in the First Quarter ended 30th June 2015, stands at Rs 1150.67 crores as against Rs 967.59 crores in the same period of previous year. The profit after tax rose by 4.8 per cent and stands at Rs 321.11 crores as against Rs 306.42 crores, recorded in the same period of the previous year.

"Although growth in profits was on account of higher loan disbursements but our non-performing loans increased, which had put pressure on profitability," Umesh Revankar, Managing Director and CEO of Shriram Transport Finance said.

Today after the result announcement, Shriram Transport Finance is trading around 0.5 per cent higher at Rs 892.