Shriram Transport Finance Company Ltd (SRTR.NS) on Thursday reported a stronger-than-expected quarterly profit, with more people buying small trucks and as the company's interest income climbed.
Commercial vehicle sales and financing have seen a resurgence following a pandemic-stirred slump, with improving loan repayments also leading to better asset quality for both bank and non-bank lenders.
The commercial vehicle financier reported a profit of 10.67 billion rupees ($128.93 million) for the second quarter ended Sept. 30, compared with a profit of 7.71 billion rupees last year. Analysts on average had expected a profit of 9.87 billion rupees, according to IBES Refinitiv data.
Interest income in the reported period rose to 51.12 billion rupees from 45.78 billion rupees a year ago, Mumbai-based Shriram Transport said in an exchange filing.
Net non-performing assets of the company as a percentage stood at 3.48% vs 3.52% a quarter ago.
The non-banking finance company is set for an all-stock merger with Shriram City Union Finance, which was announced last December.
