Shriram Transport Finance's net profit falls 70% to Rs 223 cr for Q4FY20
New Delhi: Shriram Transport Finance Co Ltd’s (STFC) standalone net profit fell by a whopping 70 percent to Rs 223.38 crore in the fourth quarter of 2019-20 fiscal as compared to same quarter of the previous fiscal.
The huge loss was mainly on account of provisions of Rs 909.64 crore that the company set aside for covid-19.
STFC’s total income went up 7 percent at Rs 4,173 crore in the fourth quarter of 2019-20 fiscal as compared to Rs 3883 crore in the same quarter of the previous fiscal.
STFC’s finance costs were at Rs 2,158.85 crore as against Rs 1,888.47 crore in the corresponding period last year.
STFC said that extension of the moratorium benefit to the borrowers of the company according to Covid19 regulatory package of the Reserve Bank of India itself is not considered to result in significant increase in credit risk us per Ind AS 109 for staging of accounts.