Our borrowing cost has come down to 10.09 per cent from 10.8 during the same quarter last year,” Ms Sriram added. Meanwhile, domestic brokerage Religare in a note said Shriram City Union Finance’s first quarter net profit of Rs 182 crore was higher than their estimates on the back of better margins and asset quality.
It added that Shriram City Union Finance’s gross non-performing assets (NPA) remained stable at 5.11 per cent with NPA coverage remaining healthy at more than 70 per cent.
Religare expects its asset quality to improve going ahead and has a “buy” call on the stock for target price of Rs 1,950.
Shriram City Union Finance shares closed 3.42 per cent higher at Rs 1,970 compared to 0.56 per cent decline in Sensex.