BENGALURU, Oct 20 (Reuters) – Shriram Transport Finance Company Ltd ( SRTR.NS ) reported a stronger-than-expected quarterly profit on Thursday, as more people bought small trucks and as interest income from the company increased.
Commercial vehicle sales and financing have seen a resurgence after a downturn caused by the pandemic, with improved 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 ended September 30, compared with a profit of 7.71 billion rupees last year.
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Analysts on average had expected a profit of 9.87 billion rupees, according to data from IBES Refinitiv.
Interest income for the reported period rose to 51.12 billion rupees from 45.78 billion rupees a year ago, Mumbai-based Shriram Transport said in an exchange filing.
The company’s net nonperforming assets as a percentage stood at 3.48% versus 3.52% a quarter ago.
The non-banking finance company is all 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 2 August.
($1 = 82.7580 INR)
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Reporting by Atreya Raghavan in Bangalore; Editing by Sherry Jacob-Phillips
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