Shriram Transport Finance Q2 net profit up by 25.5% at INR 765.05 crore

Shriram Transport Finance Q2 report

Net Interest Income for the Second quarter ended 30th September, 2019 was at Rs. 2,036.76 crore as against Rs. 2,050.91 crore in the same period of the previous year.

The Board Meeting of Shriram Transport Finance Company Limited (STFC), was held today to consider the unaudited financial results for the Second quarter ended 30th September, 2019.

Financials (Standalone) :

Second quarter ended 30th September, 2019 :

The Net Interest Income for the Second quarter ended 30th September, 2019 was at Rs. 2,036.76 crore as against Rs. 2,050.91 crore in the same period of the previous year.

The profit after tax increased by 25.50% at Rs. 765.05 crore as against Rs. 609.58 crore recorded in the same period of the previous year.

The earning per share (basic) for the second quarter ended 30th September, 2019 increased by 25.54% at Rs. 33.72 as against Rs. 26.86 recorded in the same period of the previous year.

Assets under Management:

Total Assets under Management as on 30th September, 2019 stands at Rs. 1,08,120.24 crore as compared to Rs. 1,04,379.83 crore as on 30th September, 2018.

Tax Note:

The Company has exercised the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized Provision for Income Tax for the six months ended September 30, 2019 and re-measured its Deferred Tax Assets based on the rate prescribed in the said section. Accordingly, a net gain of Rs. 167.68 crore has been recognized in the statement of Profit and Loss for the quarter ended September 30, 2019. This gain was on account of reduction in income tax rate amounting to Rs. 179.77 crore offset by a charge on account of re-measurement of deferred tax assets amounting to Rs. 12.09 crore.

Interim Dividend:

The Board declared an Interim Dividend of Rs. 5/- (50%) per share, the Record Date for the entitlement thereof has been fixed as November 8, 2019. The dividend payout would absorb a sum of Rs.136.76 crore (including dividend tax).