Shriram Finance Profit Up, Asset Quality Slips

Mumbai, Jan 25 (PTI) Largest auto financier Shriram Finance on Thursday reported a 2.3 per cent rise in profit to Rs 1,818.34 crore for the December quarter compared to the year-ago period due to worsening asset quality which whittled down the healthy growth in net interest income.

The net interest income of the company grew 15.04 per cent to Rs 5,094 crore from Rs 4,427.88 crore in the same period of the previous year.

The company said its asset quality slipped during the quarter with stage 3 gross assets rising to 8.08 per cent to Rs 11,952.3 crore from Rs 11,058.6 crore in the year-ago period, while net stage 3 assets rose to 2.25 per cent at Rs 5,573 crore from Rs 5,450.55 crore on-year.

Total assets under management rose 20.70 per cent to Rs 2,14,233.47 crore, the company said in a statement.

Consolidated net interest income for the quarter increased by 17 per cent to Rs 5,275 crore as against Rs 4,511.35 crore and consolidated net income increased by 3.99 per cent to Rs 1,873.59 crore as against Rs 1,801.66 crore.

As much as 48 per cent of its assets are in the commercial vehicles segment at Rs 1,02,465.12 crore, which is in fact down from a little over 51 per cent in the year-ago period.

Passenger vehicles book stood at 19.4 per cent or Rs 41,534.21 crore, which increased from 18.78 per cent and construction equipment book constituted 7.6 per cent or Rs 16,222.8 crore and farm equipment constituted just 1.6 per cent or Rs 3,356.36 crore.

Shriram Finance is the flagship company of the Chennai-based Shriram Group which has a presence in consumer finance, life and general insurance, housing finance, stock broking and distribution businesses.