Shriram Transport Finance Share price soars 14% after strong Q3: Asset quality performance healthy says Motilal Oswal
Motilal Oswal Highlights Shriram Transport Finance Q3 FY21 PAT declined 17% YoY to Rs 7.3 bn (8% miss). Operating profit beat our estimate by 3%; however, higher-than expected provisions on the back of Covid-related provisioning of Rs 2.25 bn led to the PAT miss. In 9M FY21, Shriram Transport Finance NII and PPOP were largely flat on a YoY basis, while PAT declined 24% YoY due to elevated credit costs.
The share of used vehicle financing in total AUM has increased 500bp to 88% over the past two years. Spreads (Cal) increased 35bp YoY to 7.4%, driven by higher yield: Image courtesy aninews.in