Shriram Transport Finance Q1 Review – Green Shoots In Disbursements; Strong Liquidity Buffers: Systematix

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Systematix Research Report

Shriram Transport Finance Company Ltd. reported a profit of Rs 1.7 billion in Q1 FY22 due to higher provisions.

With a good harvest and normalising Covid-19 situation, provision write-backs are likely in H2 FY22E.

Shriram Transport Finance’s stage-III provision is at 44.2%, which seems prudent.

Its liquidity buffer is at 13% of total assets, which can cater for next five to six months repayments.

Disbursements and collections are bouncing back to pre-Covid-19 levels.

We remain sanguine about a disbursement run-rate of Rs 120 billion in FY22E and normalisation of credit costs in FY23E.

Click on the attachment to read the full report:

Systematix Shriram Transport Q1 FY22 Result Update.pdf


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