Shriram Transport Finance Q4 net profit rises 16.6%

Net profit of the company had stood at Rs 328.77 crore during the same period in FY12.

Non-banking finance company Shriram Transport Finance today reported a 16.63 per cent rise in consolidated net profit at Rs 383.46 crore for the fourth quarter ended March 31,2013,driven by a sound rise in loan growth.

Net profit of the company had stood at Rs 328.77 crore during the same period in FY12.

Income from operations rose 21 per cent to Rs 1,907 crore in the March quarter of FY13 compared to Rs 1,575.62 crore in the corresponding period last year.

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“Despite weak market environment,our net profit has risen due to robust growth in the loan book,” Managing Director Umesh Revankar said here.

According to the non-bank finance company,total assets under management increased 25.11 per cent to Rs 52,717.18 crore in FY13 compared to Rs 42,137.27 reported in FY12.

“We had witnessed sound demand from rural areas in the last fiscal and we hope to build on this growth in the current fiscal too,” Revankar said.

During the fourth quarter,while net interest income increased 12.76 per cent to Rs 952.10 crore,net interest margin (NIM) fell marginally to 7.23 per cent from 7.5 per cent a year earlier.

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“NIM will be in the range of 7.2-7.5 per cent in the current financial year,” he said.

Talking about the commercial vehicle finance,which had seen subdued growth,he said despite the slowdown,the company is expecting things to improve in the second half of this fiscal.

Revankar also said the NBFC has pulled out of the mining sector since the past 18-24 months and has very little exposure to these zones now.

For the whole fiscal,the NBFC has reported an 11.81 per cent rise in net profit to Rs 1,463.42 crore compared to Rs 1,308.81 crore in FY12.