Leading Small Business financier Shriram City Union Finance Limited (Shriram City) has declared its results for the fourth quarter and Financial Year 2020.
Standalone disbursements in FY20 were lower by 5.6% and Assets under Management by 1.7%. However, disbursements in the flagship product of MSME loans grew 24.9% on a sequential basis. Standalone Net Profit, although lower by 39.1% in Q4 versus the previous year on account of enhanced Covid-19 related provisioning was up 1.2% for the year. Asset quality continued to improve, with Gross Stage 3 levels at 7.90% (compared to 8.91% a year ago and 8.51% last quarter). Subsidiary Shriram Housing Finance Ltd. registered a healthy performance, growing its Assets under Management by 24.7% over last year and 9.7% over the last quarter. Disbursements grew 48.5% annually and 3.6% sequentially. Disbursements for the quarter at Rs. 400 Crore were the highest ever for the Company. Net Profit for the year was higher by 179%. The subsidiary also registered, at 2.4% GS3, it best asset quality in the last five years.
Mr. Y.S. Chakravarti, MD & CEO, Shriram City Union Finance, said, “This was yet another rollercoaster of a year, with Covid-19 dampening business sentiments at the very end of the fiscal. However, Shriram City is adequately geared to deal with the challenges that will emerge in FY21. Together with our subsidiary we are strong on liquidity and recovery, and these are major determinants of success in the NBFC and Housing Finance industries.”