Shriram City Union Q4 profit slips 39 pc to Rs 153 cr

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Shriram City Union Finance has reported 39 per cent fall in standalone net profit at Rs 153 crore for March quarter, 2019-20 due to higher provisioning.
Shriram City Union Finance

New Delhi, Jun 12 (PTI) Shriram City Union Finance has reported 39 per cent fall in standalone net profit at Rs 153 crore for March quarter, 2019-20 due to higher provisioning in relation to COVID-19.

The company posted a profit of Rs 251 crore during January-March period of the previous financial year.

Company’s income from interest during the quarter under review rose to Rs 1,450 crore as against Rs 1,438 crore in the year-ago period.

“Standalone net profit, although lower by 39.1 per cent in Q4 versus the previous year on account of enhanced COVID-19 related provisioning, was up 1.2 per cent for the year, ” Shriram City Union said in a release on Friday.

COVID-19 related provisioning of Rs 426 crore was made in March quarter 2019-20. This led to a decrease of Rs 31 crore in topline due to income reversals, the company said in an investor presentation.

In 2019-20, the company’s net profit however increased marginally by 1.2 per cent to Rs 1,001 crore as against Rs 989 crore in the preceding financial year.

Interest income was up 1.8 per cent to Rs 5,887 crore from Rs 5,781 crore.

The company said its gross non performing assets (GNPA) of 2.4 per cent was the lowest in the last five years due to strong performance of new book and collection efficiency.

COVID-19 has dampened business sentiments at the very end of the fiscal, however, Shriram City is adequately geared to deal with the challenges that will emerge in 2020-21, MD&CEO Y S Chakravarti said.

The company’s stock closed 2.66 per cent down at Rs 666 on BSE.

Source:PTI

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