Mumbai: Non-banking finance firm Shriram Transport Finance on Friday reported a 46.90 per cent drop in standalone web revenue to Rs 169.94 crore for the quarter ended June on account of larger provisioning for unhealthy loans.
The lender had reported a web revenue of Rs 320.06 crore within the year-ago quarter.
Its Managing Director and CEO Umesh Revankar mentioned the Q1 FY22 numbers can’t be in contrast with the identical quarter of the earlier yr as there was a moratorium.
“As a result of second wave of COVID, gross Stage 3 belongings (NPAs) elevated. So we felt the necessity to make extra provisioning. We additionally really feel that passenger car section continues to be present process challenges and therefore, we supplied for it,” Revankar mentioned.
In the course of the interval, it made COVID provisioning of Rs 261.02 crore.
Internet curiosity earnings (NII) for the quarter rose 14.38 per cent to Rs 2,107.45 crore from Rs 1,842.54 crore in the identical interval of the earlier yr.
Gross Stage 3 belongings stood at 8.18 per cent from 7.98 per cent. Internet Stage 3 belongings had been at 4.74 per cent as in opposition to 5.06 per cent within the year-ago interval.
The collections for April, Might and June stood at 92 per cent, 87 per cent and 94 per cent.
“We really feel that July has been good to this point and we count on momentum to be a lot better in August and September. We should always be capable to cut back our Stage 3 and Stage 3 ranges and can present higher outcomes going ahead,” Revankar mentioned.
Below the RBI’s Decision Framework 2.0, the lender has invoked decision plans for eligible debtors price Rs 1,434.14 crore.
The lender restructured Rs 300 crore of loans within the quarter and expects an identical quantity of restructuring within the second quarter as nicely.
Complete belongings underneath administration (AUM) grew 6.75 per cent to Rs 119,301.37 crore as in comparison with Rs 111,756.37 crore.
The Q1 numbers embody the outcomes of STFC, the holding firm, and affiliate agency Shriram Automall India Ltd.
STFC mentioned its board of administrators additionally permitted periodical useful resource mobilisation by issuance of debt securities.
The corporate plans to problem such devices on a non-public placement foundation in tranches from August 1 to October 31, 2021, it added.
The flagship firm of the Shriram Group, STFC primarily supplies finance for industrial car trade.
Shriram Transport Finance inventory closed 1.38 per cent up at Rs 1,391.45 apiece on BSE.