DRIVING THE SMART WAY
Article Abstract:
Shriram Transport Finance Company (STFC) of Chennai, involved in hire purchase and lease financing of small road transport operators, is recording high operating profit margin. It offers funds for both old and new trucks. It has been able to record higher operating profit margin as it has been offering funds at a lower rate than others. It has around 100 branches and covers entire India, except Jammu and Kashmir and Assam. STFC has around 800 professionals. It has been able to post a high recovery rate due to its ability to analyse the ability of its borrowers. According to the audit conducted by Price Waterhouse & Associates, STFC's recovery rate is around 98.6 percent of the amount advanced. The fixed deposit schemes of STFC have been successful in southern India as the company has been able to repay on time. It has been offering on an average 25 percent dividend for the past 6 years. (ag) --------------------------------------------------------- Financial performance of Shriram Transport Finance Company --------------------------------------------------------- Particulars Year ended June (Rs in crore) 1997 1996 --------------------------------------------------------- Operating income 112.68 89.58 --------------------------------------------------------- Fund-based means 94.84 77.14 --------------------------------------------------------- Fee-based income 17.81 10.69 --------------------------------------------------------- Interest cost 75.16 54.99 --------------------------------------------------------- Depreciation 16.20 14.56 --------------------------------------------------------- Net profit 3.25 7.67 --------------------------------------------------------- Cash profit 19.54 22.31 ---------------------------------------------------------
Comment:
Hire purchase & lease financing co is recording high operating profit margin with net profit of Rs3.25 crore in 1997
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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PROMOTERS PUT GLFL ON THE BLOCK, IFCI LIKELY SUITOR
Article Abstract:
The promoters of Gujarat Lease Financing Ltd (GLFL), a joint venture of Gujarat Industrial Investment Corporation (GIIC) and the Torrent group, are searching for a buyer to acquire the non- banking financial services firm. The Torrent group holds 25 percent stake and GIIC about 26 percent of the Rs22 crore equity of GLFL. IFCI may acquire a controlling stake in GLFL but a decision will be taken only after IFCI has a new chief executive. Mr KD Agarwal, the present chief of IFCI, will retire in 6 months. GLFL, with assets of more than Rs400 crore, made a net profit of over Rs30 crore in 1997-98. Its net profit in 1998-99 may decline due to the sluggish economy and reduced margins. (khr)
Comment:
Searches w/ Gujarat Industrial Investment for a buyer to acquire non-banking financial services firm Gujarat Lease Financing
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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IL&FS INTRODUCES CALL RATE-LINKED FLOATING RATE DEBT INSTRUMENT
Article Abstract:
Infrastructure Leasing & Financial Services Ltd (IL&FS) has introduced a call rate-linked floating rate debt instrument which mat offer returns between comparable fixed rate instruments and the ruling call money rates. The instrument will be a floating rate redeemable secured non-convertible debentures issue, schedule to open this week. IL&FS plans to mobilise Rs25 crore through the private placement route. Interest will be compounded daily at the prevailing Reuters Mumbai interbank overnight average plus 2.25 percent per annum. (khr)
Comment:
Introduces floating rate debt instrument which may offer returns between comparable instruments & call money rates
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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