Shriram Transport Finance reported a drop in consolidated net profit by 3% at Rs 342 crore against Rs 353 crore, year-on-year, YoY. Its consolidated income from operations was up 5% at Rs 1,598 crore versus Rs 1,523.4 crore, YoY.
In an interview with CNBC-TV18, Umesh Revankar, Managing Director of Shriram Transport Finance Company said their performance has been steady, taking into consideration the weak economic environment. The company has increased disbursements by 9% QoQ and have also acquired 12,000 new customers in the rural market with an aim to add 200 rural units soon, informed the MD.
Revankar further added, Shriram Transport’s asset quality remained stable in Q1 and its NIMs grew at 7.42%. Besides, the comapny also reported a 9% YoY growth in the used vehicle segment. When compared the used vehicle margin is more than the new vehicle margins and it is up by 180 bps, said Revankar.
Going forward, the company expects demand to grow significantly in the second half of FY13. It also has several securitisation deals lined up for Q2.
Here is the edited transcript of the interview on CNBC-TV18.
Q: Can you take us through the numbers? It’s a flat performance as far as the topline is concerned?
A: I should say our performance has been steady in this kind of economic environment. Our disbursements have increased, especially in used vehicle. We have increased 9% quarter on quarter (QoQ) with Rs 4370 crore disbursement for this quarter.
On the new vehicle side, it has been flat and I should say the used vehicle growth is mainly because of our entry into rural market. We had started around 200 rural centers and we have acquired 12,000 new customers in the rural market. That is really very encouraging for us.
I feel that should give us very good yield in the long term because we are on the verge of starting another 200 rural units. On the used vehicle front, which is our niche segment, we are strengthening ourselves and getting penetrated in the rural market.
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