Shriram Transport Finance posts double digit profits on a (YoY) basis; Shares up by 12 Per cent

Shriram Transport Finance Company Ltd. has declared its Q4FY16 results. On a (QoQ) basis the Total Net Income from Operations has increased by 15 per cent and stands at Rs 2917.28 crores as compared to 2547.22 crores for the previous quarter. EBITDA margin has decreased by 7 per cent and stands at Rs 1668.003 crores. Provision and Contingencies for the quarter increased by 2 times and stands at Rs 856.73 crores as compared to 419.88 crores for the previous quarter. On a (QoQ) basis the Net Profit has been down by 62 per cent and stands at Rs 143.92 crore.

On a YoY basis the Consolidated Net Income from Operations has increased by 12 per cent and stands at Rs 10307.63 crores. EBITDA margin stands at Rs 6878.1 crores as compared 6364.73 crores for the previous year. EBITDA margin has seen an increase of 8 per cent. Net Profit has increased by 15 per cent and stands at Rs 1183.62 crores. Provision and Contingencies have increased by 28 per cent and stand at Rs 2058.58 crores, whereas the provisions for the previous year were just Rs 1612.22 crores.  On a CAGR basis, the EBITDA for the period of 5 years has seen a growth of 11 per cent. Total Consolidated Net Income has also seen a growth of 14 per cent over the period of 5 years.

The major reason for the decrease in Profit Margin on a quarterly basis has been provisions and contingencies. RBI policies on provisions and contingencies were fairly strict in the last quarter, which has resulted in lower profits. The shares on the bourses are fairly green, and are trading at Rs 1062.00, up by 12 per cent.

Shriram Transport Financing Company is an Indian asset financing and non-banking financial company. It is the flagship company of Shriram group. This company provides commercial vehicle finance to the customer. STFC has branches all across the country.