Shriram Transport Finance Q4 Review - Strong Disbursement Growth; Stable Asset Quality: Motilal Oswal
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Motilal Oswal Report
Shriram Transport Finance Company Ltd.’s Q4 FY21 profit after tax grew 4% QoQ (up 3.6 times YoY on a low base) to Rs 7.5 billion (6% miss).
Reported net interest margins at 6.8% were impacted by excess liquidity on the balance sheet and interest reversals.
The company continues to carry Covid-19 related provisions of Rs 26 billion (versus Rs 9 billion a year ago) – 2.2% of loans.
In FY21, the company’s net interest income/pre-provision operating profit/profit after tax came in largely flat on a YoY basis.
The company reported return on asset of 2% and return on equity of 12% plus.
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