Shriram Transport Finance logs 70% drop in Mar qtr profit

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Shriram Transport Finance Company on Wednesday reported a 70 per cent dip in its consolidated net profit at Rs 223.38 crore for the quarter to March 2020.
70 per cent dip in its consolidated net profit at Rs 223.38 crore

New Delhi, Jun 10 (PTI) Shriram Transport Finance Company on Wednesday reported a 70 per cent dip in its consolidated net profit at Rs 223.38 crore for the quarter to March 2020.

The non-banking financial company had reported a net profit of Rs 746.04 crore during the corresponding January-March quarter a year ago.

Income during the quarter under review grew by 7.5 per cent to Rs 4,173.04 crore as against Rs 3,883.38 crore in the same period of the preceding fiscal, Shriram Transport Finance said in a regulatory filing.

“The company has used relevant indicators of moratorium, considering various measures taken by government and other authorities along with an estimation of potential stress on probability of defaults and loss given defaults due to COVID-19 situation,” it said.

Based on such assessment, the company has made additional expected credit loss provision of Rs 909.64 crore on account of COVID-19 impact in the financial statement, the NBFC said.

For the full fiscal year, net profit was nearly flat at Rs 2,501.84 crore as against Rs 2,563.99 crore in the preceding fiscal.

Income in FY20 rose to Rs 16,582.63 crore from Rs 15,556.66 crore.

Further, the company also declared that the interim dividend of Rs 5 per equity share paid in November 2019 shall be the final dividend for 2019-20 in order to conserve cash resources to face the challenges and the contingencies created by COVID-19.

Its shares closed 2.57 per cent up at Rs 635.45 apiece on the BSE.

Source:PTI

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