Shriram Transport Finance Company (STFC) on Thursday reported an over 38 per cent rise in its net profit at ₹1,066.87 crore in the quarter ended September 2022.

The non-banking finance company had witnessed a net profit of ₹771.24 crore in the year-ago quarter ended September 2021.

The company's total income during July-September period of 2022-23 increased by nearly 14 per cent to ₹5,351.28 crore as against ₹4,702.81 crore in the same period of financial year 2021-22, it said in a regulatory filing.

Net interest income of STFC was up by nearly 23 per cent at ₹2,694 crore during the quarter as against ₹2,193 crore. The earnings per share during the quarter stood at ₹39.44, up from ₹28.71 last year.

Cost to income ratio, however, spiked a tad at 21.12 per cent for the quarter as against 20.73 per cent in Q2FY22.

The Assets Under Management (AUM) rose by 11.18 per cent to ₹1,35,249.34 crore.

Asset quality improves

There was an improvement in the asset quality of the NBFC with the gross Non-Performing Assets (NPAs or bad loans) falling to 6.93 per cent of the gross advances at the end of September 2022 from 7.82 per cent in the previous year.

Net NPAs also came down to 3.48 per cent from 4.18 per cent.

STFC said its collections for the first and second quarter were more than 100 per cent of the demand.

On the merger of Shriram Capital and Shriram City Union Finance with the company, approved by its board in December last year, it said the petition filed before NCLT Chennai branch was listed for final hearing on October 19, 2022 which was heard and the order is awaited.

It has received approvals/no objection to the scheme from various statutory authorities.

With regard to categorisation of the company as upper layer NBFC as per the Reserve Bank guidelines, STFC said the company is in the process of framing board approved policy/ implementing plan for adhering to Scale Based Regulatory framework as per the prescribed timelines.