Shriram City Union hits a brake!

Shriram City Union posted a very disappointing set of numbers for Q4FY17, much below expectations. In fact analysts were predicting an overall increase in numbers but the company recorded a decline, with fall in asset quality too.

The company posted a sharp 78% drop in net profit at Rs.12 crore (YoY) from Rs.55 crore though NII was up 15% at Rs.713 crore. The drop in bottomline was mainly on account of the increase in provisions and write-offs at Rs.412 crore v/s Rs.256 crore in previous Q4 and Rs.224 crore in Q3.

The company’s Gross NPA deteriorated to 5.15% from 4.49% (QoQ) while Net NPA too rose from 0.57% to 1.56%. Auto loans and personal loans showed the highest slippages.

Obviously the market was disturbed with this performance and the stock is amongst the top five losers since morning. Currently down almost 2.5% at Rs.2131, it went down to an intra day low at Rs.2070.