The Hindu Business Line : Shriram Transport Finance profit doubles in Q2

Shriram Transport Finance Company Ltd (STFC), the largest asset financing NBFC in the country, reported a doubling of profits in the second quarter of the fiscal.

Profits were at Rs 96 crore on a revenue base of Rs 570 crore. Revenues jumped 70 per cent in this quarter. Total assets under management as on September 30, 2007 stood at Rs 14,826 crore compared with Rs 12,932 crore as on June 30, 2007.

Asked to comment on the performance of the company, even in the face of a slowdown in the commercial vehicles industry, Mr R. Sridhar, Managing Director, STFC, said the slowdown affected only new vehicle sales.

‘Niche presence’ helped

He said that his company had seen an incremental advances growth of Rs 1,000 crore to the commercial vehicles segment in this quarter. Of this, Rs 900 crore was for financing old/used vehicles, while only Rs 100 crore was for new vehicles.

He said the company’s niche presence in the small truck and second hand market helped tide over the market conditions.

To raise capital

The board also decided to raise further capital to meet its ambitious growth plans.

The company plans to issue further capital by way of shares/warrants, ADR/GDR and/or by way of QIP (Qualified Institutional Placements) or preferential allotment basis as per SEBI) Guidelines.

Mr Sridhar said that the board had passed an enabling resolution and details about the timing and amount would be decided in due course.

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