Shriram Transport Finance Company (STFC) reported a 238 per cent year-on-year (yoy) jump in fourth quarter net profit at ₹755 crore against ₹223 crore in the year ago period.
The bottomline was supported by a 36 per cent y-o-y decline in loan losses and provisions at ₹724 crore (₹1,129 crore) and deferred tax credit of ₹534 crore (₹44 crore).
The Board of Directors recommended a final dividend of ₹6 per equity share of face value of ₹10 each fully paid up — 60 per cent, for FY21. With this the total dividend for FY2021 will be ₹18 per share (180 per cent).
The net interest income (difference between interest earned and interest expended) of the non-banking finance company, which predominantly finances used and new commercial vehicles (CVs), rose about 10 per cent y-o-y to ₹2,151 crore (₹1,962 crore).
As at March-end 2021, assets under management increased by 7 per cent y-o-y to ₹1,17,243 crore (₹1,09,749 crore).
In the reporting quarter, used CV was the only line of business that reported y-o-y growth of 11 per cent.
The remaining lines of business reported de-growth — new CV (-19.80 per cent), business loans (-20.54 per cent) and working capital loans (-19.51 per cent).