Thursday, July 9

Shriram City Q4 results: Net profit drops 43% to Rs 148 crore

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Mumbai: Chennai-based non-banking finance company Shriram City Union Finance on Friday said its net profit declined 43 per cent to Rs 148 crore in the quarter ended March 2020 as against Rs 258 crore a year ago mainly on a Rs 426 crore provision linked to the Covid 19 pandemic.

Revenues increased 2.47 per cent to Rs 1,543.21 crore in the quarter ended March 2020 as against Rs 1,506.06 crore during the previous quarter ended March 2019.

For the full year, net profit rose 2.09 per cent to Rs 1,023 crore from Rs 1,002 crore in the previous year.

Gross NPAs eased to 7.9 per cent against 8.5 per cent, though some part of it was attributable to the RBI’s standstill on asset classification since February 29, 2020.

Loans to small enterprises, which constitute a large chunk of the company’s portfolio, fell 6 per cent year-on-year (YoY), though disbursements in the segment increased 25 per cent.

Two-wheeler loans and gold finance book grew by 13 per cent and 15 per cent, respectively.

The company said its liquidity position in terms of cash & bank balances was Rs 2142 crore and undrawn bank lines were at Rs 250 crore.

The company did not say how many of its total customers had opted for the RBI moratorium.

Subsidiary Shriram Housing Finance’s assets under management increased 25 per cent over last year and 9.7 per cent over the last quarter. Disbursements grew 48.5 per cent annually and 3.6 per cent sequentially. Disbursements for the quarter at Rs. 400 crore were the highest ever for the company.

“This was yet another rollercoaster of a year, with Covid-19 dampening business sentiments at the very end of the fiscal. However, Shriram City is adequately geared to deal with the challenges that will emerge in FY21. Together with our subsidiary we are strong on liquidity and recovery, and these are major determinants of success in the NBFC and housing finance industries,” said YS Chakravarti, CEO at Shriram City Union.

The company’s shares ended at Rs 667 a piece on the BSE, down 2.46 per cent even as the 30 share Sensex gained 0.72 per cent.

Source: ET Markets

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