Motilal Oswal: Shriram City Union Finance Shows Healthy Improvement In Collection Efficiency   
An employee counts Indian one hundred rupee banknotes in a branch in New New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

Motilal Oswal: Shriram City Union Finance Shows Healthy Improvement In Collection Efficiency   

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

Motilal Oswal Report

Shriram City Union Finance Ltd. posted Q1 FY21 profit after tax of Rs 1.9 billion (19% beat).

While net interest income stood at Rs 8.5 billion (in-line), lower-than-expected operational expenses (Rs 3.1 billion versus estimate Rs 3.6 billion) due to rationalisation of branch expansion and employee recruitment, led to the beat.

Total Q1 FY21 credit costs at Rs 3.1 billion include approximately Rs 1.8 billion worth Covid-19 provisions (total Covid-19 outstanding provisions stand at approximately Rs 6.1 billion).

Collection efficiency improved month on month basis (April/May/June/July 2020 at 30% /52%/71%/80%). 26% of the book is under moratorium.

Approximately 22%/41% of the overall/housing finance company customers are under moratorium (approximately 50% for housing finance company in April 2020).

Click on the attachment to read the full report:

Motilal Oswal Shriram City Union Finance Q1FY21 Result Update.pdf

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