Used vehicle financier Shriram Transport Finance Corp. Ltd is optimistic that both growth and asset quality will improve in FY22, as originally anticipated, despite the ongoing second wave of the pandemic.
The company’s March quarter performance didn’t impress, though. Overall assets under management showed 6.85% growth. Operating profit hardly grew for the quarter. The company increased its provisions towards stressed loans, which meant that net profit, too, was largely flat.
Nevertheless, analysts believe the vehicle financier would show an increase in earnings in FY22 despite the pandemic.
The management remains optimistic about growth in the new financial year. Umesh Revankar, managing director of the company, said that movement of goods has not been affected in the current wave of the pandemic.
“There is no challenge in movement of vehicles. The only restriction is people movement. Goods movement is going on and even infra projects have not stopped. As of now I don’t see much challenge ahead,” he said.