City Union Finance’ Consolidated Disbursements Doubled to INR 7,056 Cr,
AUM Rose to INR 34,680 Cr up 14.4% YoY in Q2FY22
Shriram City Union Finance Ltd. (Shriram City), India’s largest
two-wheeler financer (number of 2W financed) and part of the Shriram
Group announced the financial results for Q2FY22 today. The consolidated
results include Shriram City and Shriram Housing Finance Limited. On a
Consolidated basis, disbursements nearly doubled to INR 7,056 Cr, up
97.2% YoY and grew by a strong 47.6% sequentially. Assets Under
Management (AUM) of INR 34,680 Cr is higher by 14.4% YoY. Posted
consolidated Net Profit of INR 301 Cr, higher by 36.8% QoQ and 9.4% YoY.
Shriram City’ Standalone
disbursements more than doubled to INR 6,423 Cr, up 110% YoY, up 40.8%
sequentially. AUM rose by 10.5% YoY to INR 30,425 Cr. Profit After Tax
rose by 9.9% YoY to INR 282 Cr in Q2FY22 compared to INR 257 Cr last
Efficiency stood at 100% in July-August, and improved further to 102%
in September. Asset quality continued to show improvement sequentially,
with Gross Stage 3 levels at 6.86% (6.91%: Q1FY21 and 6.67%: Q2FY21).
Credit cost too improved to 2.70%. Restructured book stood at INR 162
Cr, representing 0.53% of AUM. The company has liquidity back up of INR
4,178 Cr as of end Q2FY22.
loans, contributes 47% of the total AUM and witnessed the highest
disbursement of INR 1,825 Cr. The company is the largest Two-Wheeler(2W)
financer, with 2W loan disbursements for the quarter at INR 1,449 Cr,
up 44.9% YoY. Gold loans disbursements stood at INR 1,482 Cr in Q2FY22.
Personal Loans and Pre-owned 2W Loans showed a strong rise, with
disbursements of INR 959 Cr & INR 405 Cr respectively.
Shriram Housing Finance Ltd,
a Subsidiary of Shriram City providing affordable home loans had a
strong Q2FY22, with AUM growth of 53% YoY to INR 4,255 Cr compared to
INR 2,779 Cr in Q2FY21. Disbursals were better than the pre-covid
levels, at INR 633 Cr compared to INR 221 Cr in Q1FY22 and INR 517 Cr in
Q2FY21. Profit After Tax grew by 73% YoY to INR 18.8 Cr compared to INR
10.9 Cr last year. Asset quality improved with Gross Stage 3 assets at
1.72%, declining 36bps sequentially.