Shriram Transport Finance stock rises 7% post Q4 earnings

Shares of Shriram Transport Finance zoomed 7 per cent today after the non-banking financial company (NBFC) reported a 43.87 per cent rise in March quarter profit.

Shriram Transport Finance gained 7.38 per cent to Rs 1,228 against the previous close of Rs 1143.60 on BSE. Earlier, the stock opened with a gain of 4.58% at Rs 1,196 today. Total 0.78 lakh shares changed hands amounting to a turnover of Rs 9.42 crore.

Market cap of the NBFC rose to Rs 32,692 crore. The large cap share trades higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

The stock has gained 0.22 percent in 2022 and lost 13.83 per cent in a year.

The firm reported a profit after tax at Rs 1,086.13 crore in the quarter ended March 2022, on the back of improvement in the net interest margin and asset quality. The company had posted a standalone profit after tax of Rs 754.93 crore in the corresponding period of FY21.

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"The growth in profit was due to better NIM (Net Interest Margin) driven by lower cost of funds, and also as asset quality improved," said Umesh Revankar, Vice Chairman and Managing Director of Shriram Transport Finance.

The company in a release said the significant rise in economic activities after easing of COVID-19-related restrictions resulted in improvement in its business operations.

NIMs rose to 6.96 per cent during the quarter under review from 6.80 per cent in the fourth quarter of FY21.

On an annual basis, the firm reported 8.89 per cent rise in net profit at Rs 2721 crore in the last fiscal against Rs 2,498 crore profit for the fiscal ended March 2021.

Sales zoomed 10.53 per cent at Rs 19,255 crore in March 2022 fiscal against Rs 17,420 crore in the fiscal ended March 2021.

Operating profit excluding other income surged 7.60 per cent to Rs 13,399 crore in the last fiscal against Rs 12,453 crore in the fiscal ended March 2021.

Shriram Transport Finance Company Limited is an asset financing non-banking finance company. The company is primarily engaged in the business of financing commercial vehicles. It also provides loans for equipment and other business purposes. The company is primarily engaged in the business of financing segment.