Money & Banking

Shriram Housing Finance Q1 net profit up 82%

Our Bureau Mumbai | Updated on July 30, 2021

Shriram Housing Finance reported an 81.8 per cent rise in its net profit to ₹10.87 crore for the first quarter of the fiscal as against ₹5.98 crore a year ago.

Its total revenue from operations shot up by 62.4 per cent to ₹115.39 crore in the quarter ended June 30, 2021from ₹71.06 crore a year ago.

Assets Under Management (AUM) grew by 65 per cent to ₹3,910 crore on a year-on-year basis. However, disbursements for the first quarter of the fiscal were subdued at ₹221 crore, impacted by state level lockdowns.

Asset quality improved marginally with gross stage 3 assets declining to 2.32 per cent as on June 30, 2021 compared to 2.34 per cent for same period last year.

“Restructuring has been contained at 1.8 per cent of the book during the second wave of Covid, while in the first wave restructured book was 1.5 per cent,”it said in a statement.

Impairment on financial instruments rose to ₹1.33 crore in the first quarter of the fiscal.

“As the fear of Covid recedes, we will embark on our growth plans and expand our branch network. We also intend to expand ‘Griha Poorti’, our cross sell program through the Shriram City branch network and aim to cover over 170 distribution points of Shriram City by March 2022. This program will strengthen our AUM growth over the next four to six quarters,” said Ravi Subramanian, Managing Director and CEO, Shriram Housing Finance.

Published on July 30, 2021

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