We are targeting a blended AUM growth of 15 per cent in FY23

Shriram Transport Finance Company Ltd

Umesh Revankar Vice Chairman and Managing Director Shriram Transport Finance Company Ltd

Shriram Transport Finance’s net interest income and profit after tax for Q4FY22 witnessed healthy YoY growth of 22.16 per cent and 43.87 per cent, respectively. Can you throw some light on the factors that have led to this improvement in financial performance and business operations?

Business sentiment and operations picked up in 2HFY22 with the pandemic ebbing out. With both disbursements and collections improving simultaneously, margins have improved, thus leading to better NII and PAT in Q4FY22. Our yield spreads continue to remain steady, aided by controlled operating expenses and surplus liquidity. As a result, pick-up in demand in the used vehicle segment—where loan spreads are higher—has also boosted growth and profitability. In addition, collections have been steadily getting better and stood at around 104 per cent across January to March 2022. We also witnessed write-backs in our interest income and provisions due to the improvement in asset quality, which has supported profits.