Shriram Transport Finance Co (Q4 FY14)

India Infoline News Service | Mumbai |

Shriram Transport’s (STFC) disbursements in Q4 FY14 de-grew by 10% yoy led by steep fall of 74% yoy in New CV loan disbursements.

CMP Rs733, Target Rs850, Upside 16.0% 
  • Disbursements decline by 10% yoy; growth moderaion in Used CV disbursements accentuates 

  • AUM growth decelerates sharply to 7% yoy on account of sustained weak trend in disbursements 

  • NIM was stable contrary to guidance of improvement; margin to gradually recover over FY14-16 

  • Some restraint seen in the pace of deterioration of asset quality 

  • Inexpensive valuation does not capture long-term cyclical recovery in profitability; Retain BUY

Result table
(Rs mn)
Q4 FY14
Q3 FY14
% qoq
Q4 FY13
% yoy
Total Operating Income
20,054
20,323
(1.3)
17,752
13.0
Interest Expenses
(10,078)
(10,529)
(4.3)
(8,175)
23.3
Net Interest Income
9,975
9,794
1.9
9,577
4.2
Other income
15
12
21.5
18
(17.4)
Total Income
9,990
9,806
1.9
9,594
4.1
Operating expenses
(2,511)
(2,517)
(0.2)
(2,115)
18.7
Provisions
(3,036)
(3,022)
0.5
(2,214)
37.2
PBT
4,442
4,268
4.1
5,266
(15.6)
Tax
(1,493)
(1,254)
19.1
(1,713)
(12.9)
Reported PAT
2,950
3,014
(2.1)
3,552
(17.0)
EPS
52.0
53.1
(2.1)
62.6
(17.0)

(Rs mn)
Q4 FY14
Q3 FY14
% qoq
Q4 FY13
% yoy
 AUM
531.0
533.8
(0.5)
496.8
6.9
 Pre-owned CVs
465.5
452.1
3.0
398.3
16.9
 New CVs
62.5
69.9
(10.5)
95.3
(34.4)
 Disbursement
69.5
64.0
8.6
77.0
(9.7)
 Pre-owned CVs
BSE 1,409.00 44.10 (3.23%)
NSE 1,406.80 40.85 (2.99%)

***Note: This is a NSE Chart

 

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