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business | IST

Shriram Transport Finance bets on festive demand; says Q2 disbursals higher than Q1

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Vehicle financier are in focus. Passenger vehicle (PV) sales are weak, impacted by chip shortage but commercial vehicle (CV) makers have seen year-on-year (YoY) growth led by higher freight costs. Umesh Revankar, managing director at Shriram Transport Finance Company, discussed the outlook. According to Revankar, festive demand is looking good and Q2 disbursals were higher than Q1. Also, monthly collections in the last quarter were at 98-99 percent.

Vehicle financiers are in focus after the September auto sales figures, passenger vehicle (PV) sales are weak, impacted by chip shortage but commercial vehicle (CV) makers have seen year-on-year (YoY) growth led by higher freight costs. Umesh Revankar, managing director at Shriram Transport Finance Company, discussed the outlook.
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He sees good festive demand.
“We see the festive demand looking good, the second half of the year should be very good. Our Q2 numbers are also good, the disbursements were higher than Q1, and Q3 and Q4 should be very good because the pipeline looks quite long and there is demand for different kind of vehicles altogether. There is a big demand coming in for CNG vehicles even in the LCVs,” he said.
The collections have been very good and it will continue to remain very robust, he noted.
“Collections have been very good especially during the last quarter, every month we have been collecting around 98-99 percent, so almost 99 percent collection for the last three months. I think the collections will continue to remain very robust because the vehicle movements are good and the freight rates have also improved,” he explained.
For the full interview, watch the accompanying video.
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