Financial Daily from THE HINDU group of publications
Saturday, Jul 02, 2005
Financial Daily from THE HINDU group of publications Saturday, Jul 02, 2005 |
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Corporate Results
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NBFCs Money & Banking - Financial Performance Shriram group cos see jump in profits Our Bureau
Chennai , July 1 FOUR companies of the Chennai-based Shriram group have reported over 30 per cent increase in net profits for the last year over the previous year. All the four are non-banking finance companies, but Shriram Investments Ltd and Shriram Transport Finance Co Ltd are predominantly into truck financing. They specialise in lending for used truck purchases. Shriram City Union Finance Ltd, a joint venture with the City Union Bank, used to do vehicle financing, but is now moving out of it so as to focus on consumer financing. Shriram Overseas Ltd is also into truck and consumer loans. The group has decided to first merge Shriram Investment and Shriram Transport by December, and Shriram Overseas with the merged entity next year. Shriram City will remain a separate entity. The Managing Director of Shriram Transport Finance Co, Mr R. Sridhar, told Business Line today that availability of funds from banks and institutions, "not only from our strategic partners", for lending to used truck purchases, was chiefly responsible for the good performance of the companies. Mr Sridhar expects the current year's performance also to be good and projects a 10-15 per cent growth in lending. In February, ChrysCapital, a private equity firm, picked up 20.6 per cent stake in the three companies other than Shriram City Union, for Rs 100 crore. The infusion of capital will help the group leverage better in the current year, Mr Sridhar said.
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