Last night Shriram City Union Finance announced its quarterly results. Assets under management is up from 29,582 crores in March 2019 to 30,352 crores at the end of June 2019. RoA is marginally down to 3.41% in June from 3.44% in the prior quarter. RoE is down to 15.44% from 16.48% at the end of March. Disbursements are marginally down 5% QoQ. EPS was INR 38.4, Book value at INR 1005, CRAR at 22.5%. Asset quality only very marginally declined with net stage 3 assets holding almost flat at 5.03% with provisions just marginally up. Looking at the ALM statement, looks like their short term liquidity is fine.
And this was supposed to be a bad quarter. Results have help up well and the business model seems more steady than what the news will lead you to believe. It does look like this blood bath will eventually open up interesting opportunities for the patient investor.
Disclosure: Long Shriram City. Also read disclosure here
Beowulf Capital 