New Delhi: NBFC firm Shriram Transport Finance on Thursday reported a 4% rise in net profit to Rs 149.63 crore for the fourth quarter ended 31 March.
The company’s net profit stood at Rs 143.92 crore in the January-March quarter of FY 2015-16. Shriram Transport Finance CEO and MD Umesh Revankar said only a marginal increase in net profit was mainly due to revision in asset recognition norms for bad loans that has been decreased to 120 days from 150 days earlier.
Total income during the quarter fell by 7.4% to Rs 2,712.31 crore from Rs 2,930.20 crore a year ago, while the net interest income fell by 3.2% to Rs 1,408.69 crore from Rs 1,455.96 crore year ago, the company said in a regulatory filing. For the fiscal 2016-17, total income was up 5.2% at Rs 10,830.61 crore compared Rs 10,293.48 crore in 2015-16.
Net profit during 2016-17 rose by 6.7% to Rs 1,257.34 crore, as against Rs 1,178.20 crore.
Revanakar said the change in NPA recognition method as per RBI norms, also led to rise in bad loans as gross NPAs rose to Rs 5,408.44 crore at the end of March 2017 compared to 3,870.24 crore as on March 31, 2016.
Net non-performing assets (NPAs) increased to Rs 1,659 crore by the end of 2016-17, from Rs 1,143.70 crore a year ago.
In terms of ratio, gross NPAs rose to 8.16% of gross advances as on March 2017, as against 6.18% a year earlier.
Net NPAs stood at 2.65% compared to 1.91% in 2015-16. The company has also declared a dividend of Rs 6 per share, in addition to an interim dividend of Rs 4 per share, making the total dividend of Rs 10 for year 2016-17.
Its asset under management as on March 31, 2017 were at Rs 78,760.93 crore as compared to Rs 72,760.60 crore at the end of March 2016.
The company provides finance to commercial vehicle industry and specifically helps truck owners to buy vehicles, including second hand trucks. Shares of the company closed 1.15% down at Rs 1,041.25 on BSE.