Shriram Transport June quarter net profit up 6% to Rs341 crore
Moneylife Digital Team 23 July 2013
The flagship company of the Shriram group has reported benign first quarter results, with profit just rising by 5.96% due to challenging automotive market and a sluggish trucking market
 
Net interest income of Shriram Transport Finance Company, for the quarter ended 30th June increased 12.43%, year-on-year (y-o-y), to Rs902.24 crore, as against Rs802.49 crore in the same period last year. Its net profit increased by 5.96% to Rs341.04 crore as against Rs321.85 crore recorded in the same period last year. The earning per share for the first quarter ended 30 June increased by 5.7% to Rs15.03 as against Rs14.22 for the corresponding period last year. A sluggish automotive sector and poor demand from truck unions were reasons for subdued performance. A sluggish economy and high interest rates meant truckers took out fewer risk to finance trucks. 
 
Income from operations for the quarter ended 30th June, stood at Rs1,865 crore as against Rs1,508.30 crore for the corresponding period last year, up 23%. However, profit before exceptional items stood at Rs484.51, up barely 1.7%.
 
During the June quarter, the company has sold off its entire 40% equity stake held in associate company Shriram Asset Management Company (SAMC), and ceased to be the promoter as well as sponsor of the SAMC, effective from 20th June. 
 
The company announced the final dividend of Rs4 per share, or 40% for the first quarter. The company has a live customer base of approximately 10 lakh. 
Shriram Transport closed Tuesday 2.35% up at Rs677.85 on BSE, the 30-shareSensex closed 143 points up to end at 20,302.
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