India's Shriram Transport Finance Profit Surges On Higher Interest Income

Shriram Transport Finance Company Ltd 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 that ended September 30, compared with a profit of Rs. 7.71 billion last year.

Analysts on average had expected a profit of Rs. 9.87 billion, according to IBES Refinitiv data.

Interest income in the reported period rose to Rs. 51.12 billion 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 per cent vs 3.52 per cent 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.

The merger received approval from the Indian competition regulator on Aug. 2.