Shriram City Union Finance Ltd. declares June 2020 results
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, it 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 in 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.”