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Below are Quote on Shriram Transport Finance Company Limited Q4FY21 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd

Shriram Transport Finance reported a 12.2% YoY increase in net interest income (NII) to Rs. 2,151 crore for the quarter. Fees & other income for the quarter were down by 59.5% YoY to Rs. 29crore. Total net income for the quarter was up by 9.6% YoY to Rs. 2,180 crore while operating expenses for the quarter was up by 0.5% YoY to Rs. 518 crore. Pre provisioning profits for the quarter was up by 12.8% YoY to 1,662 crore while provisions were down by 36% YoY to Rs. 725 crore which led to an increase in PAT by 236% YoY to Rs. 755 crore. Loan book grew by 6.8% YoY to Rs. 1,17,243 crore. The company continues to remain adequately capitalized with a CAR of 22.5%. Asset quality continues to improve as GS3 has reduced YoY from 7.11% to 7.06% sequentially while NS3 also reduced to 4.22% from 4.31%. While operating numbers were good, sequential loan growth was lower than expected as disbursements for the quarter were impacted in March due to the second pandemic wave. This was reflected in sequential growth of 10.3% in borrowings though AUM growth was restricted to 2.0% QoQ. Post the Q4FY212 numbers we continue to maintain our positive outlook on STFC with a target price of Rs. 1,573.

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