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SHRIRAM TRANSPORT FINANCE COMPANY LTD.

NSE : SRTRANSFINBSE : 511218ISIN CODE : INE721A01013Industry : Finance - NBFCHouse : Shriram Transport
BSE1279.65-59.6 (-4.45 %)
PREV CLOSE ( ) 1339.25
OPEN PRICE ( ) 1329.90
BID PRICE (QTY) 1279.55 (91)
OFFER PRICE (QTY) 1280.70 (39)
VOLUME 78340
TODAY'S LOW / HIGH ( )1272.75 1335.10
52 WK LOW / HIGH ( )428.7 1534.9
NSE1275.00-64.35 (-4.8 %)
PREV CLOSE( ) 1339.35
OPEN PRICE ( ) 1329.00
BID PRICE (QTY) 1274.95 (20)
OFFER PRICE (QTY) 1275.00 (314)
VOLUME 1977951
TODAY'S LOW / HIGH( ) 1272.00 1335.70
52 WK LOW / HIGH ( )428.72 1534.95
AnalystEmailIdaayushi.goyal@narnolia.com
AnalystNameAayushi Goyal
BSECode511218
CP1DesignationMD
CP1NameMr Umesh Revankar
CP2DesignationNA
CP2NameNA
CP3DesignationNA
CP3NameNA
CallDate30 Oct 2020
DescriptionCV sells fell by 20% YoY to 133524 units in 2QFY21 as against fall of 88% in last quarter. The only segment which is not operational till now is passenger tourism which forms very less composition to the company’s book. 4.5% of the customers have not paid a single EMI in 6 months moratorium period and this number is 1% of the overall book. Out of this 4.5% around 3% is likely to go for restructuring. The main segment under this is taxi aggregators etc. The company added 26 new branches in 2QFY21 and has plans to add 100 more in next 2 quarters with a need for 1000 people to be added. This branch expansion has been reason for increase in other expenses and employee cost went up on the account of incentives given in 2QFY21. 12% of the branches are urban one and rest all are either semi urban or rural which has strong connect with agriculture segment. GNPA and NNPA as of 30th September, 2020 stood at 6.42% and 3.64% respectively, as against 8.80% and 6.15% as of 30 September 2019 due to non-recognition of NPA as per Supreme Court order. However such accounts have been classified as stage 3 and provisioned accordingly. If the Company had classified borrower accounts as NPA after 31 August 2020, the Company's Gross NPA and Net NPA ratio would have been 7.26 % and 4.51% respectively. In total the company mobilized Rs 7500 Cr of funds in 2QFY21.Rs 1500 Cr through Term loans, Rs 4000 Cr through securitization and rest from capital market and retail deposits. The company targets 20% of liabilities to come from retail deposits going ahead. The company had Rs 68 Cr in upfront income on one assignment transaction in 2QFY21 causing the interest income to be high. The company had Rs 401 Cr of provisions in 2QFY21, Rs 300 Cr for accounts which would have been NPA if Supreme Court order was not there and rest is additional cautious provisioning for COVID-19. The management expects disbursements to be Rs 12-13K Cr per quarter going ahead and AUM growth is likely to be 5-6% for FY21. The company is likely to continue to have high liquidity till March 2021. The collection efficiency stood at 95% for the month of September. The incremental cost of borrowings stands at 8.75% for securitization, 8.5-9% for term loan and less than 8% for retail borrowings. The management expects credit cost to improve going ahead. C/I ratio is likely to be 22-23% going ahead. The company had Rs 2800 Cr of sanctions along with Rs 570 Cr of disbursements under ECLGA scheme. The company targets RS 250 Cr of deposits to be accredited per month going ahead
SubjectQ2FY21 EARNING CONFERENCE CALL

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