Shriram Transport Finance Company Ltd will report its fourth-quarter earnings on Wednesday and analysts expect the asset financing firm will report its slowest net interest income (NII) and profit after tax growth in the last eight quarters.
- Disbursements are expected to decline year on year (YoY) and could be 70-80 percent off the normalcy levels due to slowdown in the NBFC sector coupled with slowdown seen in the commercial vehicle (CV) and passenger vehicle segments.
- Net interest margin (NIM) above 7.4 percent will be seen as positive. The company has accessed international markets to raise money and analysts will keenly watch how NIMs pan out.
- Asset under management (AUM) growth is expected to be lower on account of slowdown seen in the CV cycle. The gross non-performing assets (NPA) are expected to be steady at around 9 percent.
- Estimates suggest an NII growth of 11 percent compared to 20 percent usually seen for the company, while net profit is expected to increase by 17 percent compared to the 24 percent plus kind of growth it usually clocks.