Shriram City Union Q1 Review - No Major Deterioration In Asset Quality; Restructuring Minimal: Motilal Oswal
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 City Union Finance Ltd. posted profit after tax of Rs 2.1 billion (up 8% YoY; 14% miss) in Q1 FY22.
Pre provision operating profit was largely in-line at Rs 5.7 billion (flat YoY).
While net interest income stood at Rs 8.8 billion (in-line), credit costs stood at Rs 2.9 billion (~16% above estimate), leading to the profit after tax miss.
Q1 FY22 was characterised by a sequentially muted performance in disbursements (due to lockdowns) and ~55 basis point deterioration in gross state III.
Shriram City Union Finance should deliver return on equity/return on asset of ~14%/4% in FY23E.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.