Mumbai, Jan 21 (PTI) Non-bank lender Shriram Finance on Friday reported a 22 per cent decline in its net profit for the December quarter to Rs 2,530 crore on a consolidated level.
The company had reported
a net profit of Rs 3,249 crore in the year-ago period and Rs 2,314 crore in the quarter-ago period.
On a standalone level, its Q3 net declined to Rs 2,522 crore from Rs 3,570 crore in the year-ago period.
The company had benefited from the sale of its housing finance arm in the year-ago period.
For the reporting quarter, its core net interest income grew 16 per cent to Rs 6,765 crore on the back of a 14.63 per cent jump in assets under management and a 0.10 per cent expansion in the net interest margin at 8.58 per cent.
The other income grew by nearly 18 per cent at Rs 1,153 crore during the reporting quarter.
Its managing director Parag Sharma said the company is confident of maintaining the NIM at over 8.5 per cent going ahead as well.
In the future, the company, which has been focused on the used commercial vehicle segment, will be targeting to lend to operators upgrading to help them buy new CVs.
Sharma said this will exert pressure on the NIMs, but the company is confident of lowering its borrowing costs on the back of rating upgrades.
At present, new CV assets account for under 5 per cent of the overall CV AUM, he said, adding that it is targeting to raise the same to 10-15 per cent in the next two years.
The company is also looking to push the pedal on the gold loans business, and Sharma said it is looking to increase its contribution to the AUM to 5 per cent in 18 months from the present 2 per cent.
Even as it goes about getting the requisite regulatory clearances for the Rs 39,000 crore fund infusion from Japan’s MUFG, Sharma made it clear that the company is not looking at any acquisitions.
The Shriram scrip closed 0.29 per cent down at Rs 1,003.45 apiece on the BSE on Friday against a 0.94 per cent correction on the benchmark. PTI AA BAL BAL
