STFL Q2FY23 PAT up 38.2% at Rs1,070 crore on higher interest yields and lower financial asset impairment

25 Oct 2022 , 07:43 PM

Shriram Transport Finance reported 13.79% growth in total revenues for the September 2022 quarter on consolidated basis at Rs5,351cr.

Revenue growth was 3.92% in sequential terms. There was a sharp surge in interest income in the quarter largely helped by higher interest yields on the loans given amidst rising rates.

At the same time, the finance costs was only marginally higher, leading to sharp spike in the net interest margins, which boosted the profit growth in the quarter. Impairment costs were also flat in the quarter.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 38.16% at Rs1,070cr and it was 10.66% higher on sequential basis.

The net worth of the company stands at an impressive Rs27,994 crore while the debt equity ratio has been constant at around the 4.48X mark.

Debts constituted about 80% of the total assets which is normal in the asset financing business.

The company saw a sharp recovery in the lending business in Q2FY23. PAT margins at 19.99% in Q2FY23 were better than 16.46% in Q2FY22 and 18.77% in Q1FY23.

Financial highlights for Sep-22 compared yoy and sequentially

	Shriram Transport Finance
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 5,351.28	₹ 4,702.81	13.79%	₹ 5,149.26	3.92%
Net Profit (Rs cr)	₹ 1,069.52	₹ 774.10	38.16%	₹ 966.52	10.66%
Diluted EPS (Rs)	₹ 39.54	₹ 28.81		₹ 35.73
Net Margins	19.99%	16.46%		18.77%