SSPL WEALTH PVT LTD

Shriram Transport Finance Company

24-Jan-22 21:19 Hrs IST

ShriramTransport Finance Company reported 7% decline, on consolidated basis, in thenet profit to Rs 686.02 crore for the quarter ended December 2021 (Q3FY2022). Thecompany has improved the net interest margin to 6.65% in Q3FY2022 from 6.44% inthe previous quarter, while margin remained lower compared with 6.88% in thecorresponding quarter last year. The netinterest income (NII) of the company moved up 11% to Rs 2387.97 crore inQ3FY2022. The company has also exhibited acceleration in loans growth to 8% atend December 2021. The Asset Under Management (AUM) increased 8% to Rs 124601.77crore at end December 2021. The company has exhibited improvement in assetquality, while reducing NPA ratios in Q3FY2022.

Incomefrom operations of the company increased 6% to Rs 4660.68 crore in the quarterended December 2021. Interest expense moved up 7% to Rs 2397.25 crore, whileother expenses (including staff cost of Rs 242.87 crore and other expenses ofRs 249.99 crore) declined 3% to Rs 492.86 crore. Ensuing Gross profit improved 14%to Rs 1942.22 crore.

Depreciationdeclined 6% to Rs 34.66 crore, while provision and write offs increased 46% toRs 984.27 crore. PBT as a result fell 7% to Rs 923.29 crore. Effective tax ratewas flat at 26.3% in Q3FY2022 from 26.4% in Q3FY2021.

Thefinal bottomline of the company declined 7% to Rs 686.02 crore in the quarterended December 2021.

Business performance and Asset quality

AUM ofthe company increased 8% to Rs 124601.77 crore, driven by used vehicles loanbook rising 14% to Rs 115003.68 crore at end December 2021. New vehicles loanbook dipped 28% to Rs 6131.58 crore, while other loans also slipped 36% to Rs 3466.51crore end December 2021.

The segmentwise AUM consists of HCV 47.94%, M&LCVs 26.45%, PV 20.37%, Tractors 2.46%, others0.05% end December 2021.

Thebranch network of the company stood at 1834 branches with 2.10 millioncustomers at end December 2021 against 1799 branches with 2.10 millioncustomers at end December 2020. The employee count of the company stood at 25328employees at end December 2021.

Thegross stage 3 assets ratio declined to 7.62% at end December 2021 and Net NPAratio fell to 4.08% at end December 2021. The company has improved the NPAcoverage ratio at 48.4% at end December 2021 from 48.6% a quarter ago.

Book value of the company on a standalone basisstood at Rs 943.8 per share at end December 2021. The adjusted book valueincreased to Rs 764.3 per share at end December 2021.

Financial Performance 9MFY2022:

For thenine months ended December 2021 (9MFY2022), Shriram Transport Finance Companyreported 8% rise in Income from operations at Rs 13718.10 crore on a standalonebasis. Other income jumped 119% to Rs 468.54 crore compared with Rs 213.65 crorein 9MFY2021. The total income moved up 10% to Rs 14186.64 crore. Interestexpense increased 8% to Rs 7330.59 crore, while other expenses rose 9% to Rs 1456.58crore. Ensuing Gross profit increased 12% to Rs 5399.47 crore. Depreciationdeclined 4% to Rs 100.77 crore, while provision and write offs galloped 29% toRs 3100.07 crore. PBT declined 6% to Rs 2198.63 crore. Effective tax rate stoodat 26.2% compared to 26.0% in the corresponding period last year. The share ofprofit of associate declined 18% to Rs 8.07 crore. The final bottomline of thecompany fell 6% to Rs 1629.87 crore in 9MFY2022.

Shriram Transport Finance: Consolidated Results
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
* Annualized on current equity of Rs 270.52 crore. Face Value: Rs 10, Figures in Rs Crore
Source: Capitaline Corporate Database