Auto NBFCs Q4 Earnings Review -  Growth Decelerates, Stress Pool Remains Elevated: Nirmal Bang

A sales person, center, sits talking with customers inside the Prabhadevi Concorde Motors India Ltd. dealership in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg).

Auto NBFCs Q4 Earnings Review - Growth Decelerates, Stress Pool Remains Elevated: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

In Q4 FY21, we witnessed a wide disparity in growth, asset quality and valuations of auto non banking financial companies.

However, capital raise in the last one year, abundant liquidity and adequate provision buffers aided in strengthening the balance sheets.

Benefit from low cost of funds continued to accrue, but the net interest margins were lower QoQ due to interest reversals.

Shriram Transport Finance Company Ltd. was a clear outperformer due to an improvement in its end market demand, stable asset quality and high provision buffer compared to stress on its balance sheet.

Click on the attachment to read the full report:

Nirmal Bang Auto NBFCs- Q4FY21 Result Review-8 June 2021.pdf

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