Shriram Transport Finance Q1 profit rises 17% to Rs374 crore
STFC says it will also raise up to Rs25,000 crore via NCDs and buy back bonds worth Rs500 crore
New Delhi: Shriram Transport Finance Co. Ltd (STFC) has reported an increase of 16.5% in its net profit at Rs.374.10 crore for the quarter ended June 2016.
Net profit was at Rs.321.11 crore in the same quarter of 2015-16. “Total income is Rs.2,685.99 crore for the quarter ended June 30, 2016, whereas the same was at Rs.2,353.34 crore for the quarter ended June 30, 2015,” the company said in a regulatory filing.
STFC said its March quarter numbers include those of Shriram Equipment Finance Co. Ltd, which has been amalgamated with the firm with effect from 1 April 2015 and are therefore not comparable with other quarters.
STFC’s net interest income for the June quarter stood at Rs.1,346.10 crore as against Rs.1,135.61 crore a year ago. The asset under management as on 30 June stood at Rs.74,808.46 crore compared with Rs.60,531.72 crore a year earlier.
STFC, a non-banking financial company, is the flagship of the Shriram Group, which has significant presence in consumer finance, life insurance, general insurance, stock broking and distribution businesses.
STFC to raise Rs25,000 crore
STFC on Wednesday said it will raise up to Rs.25,000 crore and buy back bonds worth Rs.500 crore.
Both the decisions were taken at the annual general meeting of the company held on Wednesday. The board of directors at its meeting has “approved issuance of redeemable non-convertible debentures on private placement basis up to Rs.25,000 crore in the annual general meeting held today”, it said in a BSE filing.
STFC said the decision is an outcome of a special resolution passed by shareholders. Besides, the board has also authorised the banking and finance committee to buy back redeemable non-convertible debentures up to Rs.500 crore from time to time.
Further, the company said a special resolution was passed for enhancement of limit up to Rs.93,750 crore for creation of security on assets in respect of borrowings of the company.