Non banking finance company Shriram City Union Finance Ltd (Shriram City) today registered a decline of 9.3 per cent in net profit to Rs 157.74 crore for third quarter ended December 31, as payments were delayed by borrowers due to demonetisation.
The company had reported a net profit of Rs 174 crore in the December quarter last fiscal.
“As we largely cater to the self-employed segments, which transact primarily in cash, we have experienced near term delays in payment due to the difficulties faces by these customers in converting their holdings within the stipulated time.
“Collections for the quarter ended December 2016 is down by 9.9 per cent compared to the collections for the September quarter,” the company said in a statement.
However, Shriram City Union said two wheeler disbursements in October has been record high with festive season and the first week of November also had a significant portion of spill over business of previous month, which resulted in muted impact of demonetisation when seen on a quarter as a whole.
Income of the company was at Rs 1,555.73 crore for the quarter, up 15.5 per cent year on year.
The company’s asset under management (AUM) grew by 18.6 per cent to Rs 22,544 crore.
“Subsidiary Shriram Housing Finance logged a growth of 69.4 per cent in AUM at Rs 1,833.40 crore and reported net profit of Rs 23.70 crore,” the company said further.
“We have been able to manage to overcome the challenges imposed on account of demonetisation and are confident that in the coming quarters we would be able to get back the business rhythm that prevailed up to October, 2016,” said Y S Chakravarti, COO, Shriram City Union Finance.
A part of over Rs 95,000 crore Chennai-based Shriram Group, Shriram City offers multiples loan products to small business owners, purchase of two wheelers, commercial, passenger vehicles and homes.
It also offers loan against gold ornaments and for personal consumption as well.
Shriram City stock closed 0.44 per cent up at Rs 2020.20 on BSE.
(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)