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Shriram City Union Finance Ltd. declares June 2020 results
Posted on: 12/Aug/2020 12:47:20 PM
Leading Small Business financier Shriram City Union Finance Limited (Shriram City) has declared its results for the first quarter of Financial Year 2021.
In a quarter affected by the Covid-19 pandemic, there was only a relatively slower decline in Assets under Management (lower by 6% annually and 2% sequentially). The Two Wheeler loan book grew 10% higher year-on-year. Standalone Net Profit, although lower by 24% year-on-year was up 26% sequentially. Operating Expenses were substantially reduced (lower by 18% annually and 20% sequentially), and accordingly, Operating Profit was higher 10% Q-o-Q. Asset quality continued to improve, with Gross Stage 3 levels at 7.28% (161 bps lower than a year ago and 62 bps over the last quarter). Loan impairments and write-offs were steady at last quarter’s levels. Subsidiary Shriram Housing Finance Ltd., despite considerably lower disbursements in the quarter, registered a growth of 23% in Assets under Management over last year. Shriram Housing also registered, at 2.3% GS3, its best asset quality in the last five years.
Mr. Y.S. Chakravarti, MD & CEO, Shriram City commented “We are glad to report that we are gradually returning to Business-as-Usual mode, with all our offices currently being operational. Disbursements began in some strength in June, and we hope to increase business traction in a calibrated manner for the rest of the year. We made excellent progress in cost control in the quarter, and hope to sustain the practices leading to this development.”
