Shriram Transport Finance Company (STFC) on Friday reported a 14 per cent decline in its June quarter net profit at Rs 312.90 crore due to a jump in provisioning for bad assets.
The company had posted post tax net of Rs 366.27 crore in the corresponding period last fiscal.
Total income grew to Rs 2,015.87 crore for the first quarter ended June 30 from the year-ago’s Rs 1,891.27 crore.
Net interest income expanded to Rs 1,015.66 crore, from Rs 961.95 crore in the same period a year-ago.
STFC Managing Director and Chief Executive Umesh Revankar said a surge in gross non-performing assets ratio to 3.74 per cent from the year-ago’s 3.09 per cent, coupled with a jump in the provisioning, hurt the bottomline.
Provisions shot up to Rs 287 crore during the quarter, up from the year-ago period’s Rs 239 crore, he said.
The NBFC’s net interest margin narrowed to 6.54 per cent from 7.01 per cent in the year-ago period.
Mr. Revankar expressed optimism over prospects improving in coming months, saying there might be a revival in the infrastructure and mining sectors, which will help the company’s business from the second-half of 2014-15.
