Shriram Transport Finance Q1 PAT tumbles 49% to Rs 320 cr

On a standalone basis, Shriram Transport Finance's net profit tanked 49.5% to Rs 320.06 crore on 2.8% increase in total income to Rs 4,144.70 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) slumped 56.1% to Rs 430.58 crore in Q1 June 2020 as against Rs 981.58 crore in Q1 June 2019. Tax expense for the quarter tanked 68.18% to Rs 110.52 crore as against Rs 347.33 crore in Q1 June 2019. The Q1 earnings were declared after market hours yesterday, 13 August 2020.

Net interest income (NII) for the first quarter ended 30 June 2020 declined 6.51% to Rs 1,820.35 crore as against Rs 1,947.02 crore in the same period of the previous year. Total Asset under Management as on 30 June 2020 stands at Rs 1,11,756.37 crore as compared to Rs 1,06,343.48 crore as on 30 June 2019 and Rs 1,09,749.24 crore for the year ended 31 March 2020.

The company has considered an additional Expected Credit Loss (ECL) provision on account of COVID-19 of Rs 956.15 crore during the quarter ended 30 June 2020 and the company's overall provision of ECL on account of COVID-19 as on 30 June 2020 stands at Rs 1,865.79 crore. The above additional ECL provision is based on the company's historical experience and other emerging forward looking factors on account of the pandemic. However, the actual impact may vary due to prevailing ucertainty caused by the pandemic. The company's management is continuously monitoring the situation and the economic factors affecting the operations of the company.

Shares of Shriram Transport Finance rose 2.83% to Rs 722.45 on BSE. Shriram Transport Finance Company, the flagship company of the Shriram group, has significant presence in consumer finance, life insurance, general insurance, stock broking and distribution businesses.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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