Motilal Oswal: Shriram Transport - Collections Improving; Beat On NII, Provisions Drive Healthy PAT Beat
Motilal Oswal: Shriram Transport - Collections Improving; Beat On NII, Provisions Drive Healthy PAT Beat
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Motilal Oswal Report
Shriram Transport Finance Company Ltd. reported Q2 FY21 profit after tax of Rs 6.85 billion (59% beat), largely driven by strong beat on net interest income and lower-than-estimated provisioning.
Margins improved 25 basis point QoQ to 6.66%. Pre-provision operating profit grew 5% QoQ (flat YoY) to Rs 15.8 billion (6% beat).
During the quarter, the company made Covid-19 related provisions of Rs 4.2 billion, taking the total to Rs 22.2 billion (2% of loans).
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