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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

A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)
A cashier counts Indian one hundred-rupee banknotes at an Oriental Bank of Commerce branch in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

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.

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).

Click on the attachment to read the full report:

Motilal Oswal Shriram Transport Q2FY21 Result Update.pdf

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