Shriram Transport Finance Company reported 7% decline, on consolidated basis, in the net profit to Rs 686.02 crore for the quarter ended December 2021 (Q3FY2022). The company has improved the net interest margin to 6.65% in Q3FY2022 from 6.44% in the previous quarter, while margin remained lower compared with 6.88% in the corresponding quarter last year. The net interest income (NII) of the company moved up 11% to Rs 2387.97 crore in Q3FY2022. The company has also exhibited acceleration in loans growth to 8% at end December 2021. The Asset Under Management (AUM) increased 8% to Rs 124601.77 crore at end December 2021. The company has exhibited improvement in asset quality, while reducing NPA ratios in Q3FY2022.
Income from operations of the company increased 6% to Rs 4660.68 crore in the quarter ended December 2021. Interest expense moved up 7% to Rs 2397.25 crore, while other expenses (including staff cost of Rs 242.87 crore and other expenses of Rs 249.99 crore) declined 3% to Rs 492.86 crore. Ensuing Gross profit improved 14% to Rs 1942.22 crore.
Depreciation declined 6% to Rs 34.66 crore, while provision and write offs increased 46% to Rs 984.27 crore. PBT as a result fell 7% to Rs 923.29 crore. Effective tax rate was flat at 26.3% in Q3FY2022 from 26.4% in Q3FY2021.
The final bottomline of the company declined 7% to Rs 686.02 crore in the quarter ended December 2021.
Business performance and Asset quality
AUM of the company increased 8% to Rs 124601.77 crore, driven by used vehicles loan book rising 14% to Rs 115003.68 crore at end December 2021. New vehicles loan book dipped 28% to Rs 6131.58 crore, while other loans also slipped 36% to Rs 3466.51 crore end December 2021.
The segment wise AUM consists of HCV 47.94%, M&LCVs 26.45%, PV 20.37%, Tractors 2.46%, others 0.05% end December 2021.
The branch network of the company stood at 1834 branches with 2.10 million customers at end December 2021 against 1799 branches with 2.10 million customers at end December 2020. The employee count of the company stood at 25328 employees at end December 2021.
The gross stage 3 assets ratio declined to 7.62% at end December 2021 and Net NPA ratio fell to 4.08% at end December 2021. The company has improved the NPA coverage ratio at 48.4% at end December 2021 from 48.6% a quarter ago.
Book value of the company on a standalone basis stood at Rs 943.8 per share at end December 2021. The adjusted book value increased to Rs 764.3 per share at end December 2021.
Financial Performance 9MFY2022:
For the nine months ended December 2021 (9MFY2022), Shriram Transport Finance Company reported 8% rise in Income from operations at Rs 13718.10 crore on a standalone basis. Other income jumped 119% to Rs 468.54 crore compared with Rs 213.65 crore in 9MFY2021. The total income moved up 10% to Rs 14186.64 crore. Interest expense increased 8% to Rs 7330.59 crore, while other expenses rose 9% to Rs 1456.58 crore. Ensuing Gross profit increased 12% to Rs 5399.47 crore. Depreciation declined 4% to Rs 100.77 crore, while provision and write offs galloped 29% to Rs 3100.07 crore. PBT declined 6% to Rs 2198.63 crore. Effective tax rate stood at 26.2% compared to 26.0% in the corresponding period last year. The share of profit of associate declined 18% to Rs 8.07 crore. The final bottomline of the company fell 6% to Rs 1629.87 crore in 9MFY2022.
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Shriram Transport Finance: Consolidated Results |
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Particulars |
2112 (3) |
2012 (3) |
Var % |
2112 (9) |
2012 (9) |
Var % |
2103 (12) |
2003 (12) |
Var % |
| Income from operations | 4660.68 | 4381.45 | 6 | 13718.10 | 12724.89 | 8 | 17128.14 | 16267.46 | 5 |
| Other Income | 171.65 | 61.67 | 178 | 468.54 | 213.65 | 119 | 308.26 | 315.17 | -2 |
| Total Income | 4832.33 | 4443.12 | 9 | 14186.64 | 12938.54 | 10 | 17436.40 | 16582.63 | 5 |
| Interest Expenses | 2397.25 | 2236.26 | 7 | 7330.59 | 6766.41 | 8 | 9054.26 | 8270.26 | 9 |
| Other expenses | 492.86 | 506.31 | -3 | 1456.58 | 1332.49 | 9 | 1848.37 | 1937.77 | -5 |
| Gross profit | 1942.22 | 1700.55 | 14 | 5399.47 | 4839.64 | 12 | 6533.77 | 6374.60 | 2 |
| Depreciation | 34.66 | 36.84 | -6 | 100.77 | 104.88 | -4 | 137.36 | 141.05 | -3 |
| Profit before tax and Provisions | 1907.56 | 1663.71 | 15 | 5298.70 | 4734.76 | 12 | 6396.41 | 6233.55 | 3 |
| Provisions and write off | 984.27 | 674.71 | 46 | 3100.07 | 2394.76 | 29 | 3118.40 | 2794.88 | 12 |
| Profit before tax | 923.29 | 989.00 | -7 | 2198.63 | 2340.00 | -6 | 3278.01 | 3438.67 | -5 |
| Provision for tax | 242.67 | 261.28 | -7 | 576.83 | 607.66 | -5 | 790.75 | 936.83 | -16 |
| Net profit | 680.62 | 727.72 | -6 | 1621.80 | 1732.34 | -6 | 2487.26 | 2501.84 | -1 |
| Share of profit/loss of associate | 5.40 | 6.25 | -14 | 8.07 | 9.80 | -18 | 11.57 | 10.43 | 11 |
| PAT | 686.02 | 733.97 | -7 | 1629.87 | 1742.14 | -6 | 2498.83 | 2512.27 | -1 |
| EPS*(Rs) | 101.4 | 108.5 | 80.3 | 85.9 | 92.4 | 92.9 | |||
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* Annualized on current equity of Rs 270.52 crore. Face Value: Rs 10, Figures in Rs Crore |
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Source: Capitaline Corporate Database |
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