Shriram City Union Finance's (SCUF) 3QFY18 PAT grew 34% YoY (adj. for one-time gain on sale) to INR2.11b, 4% ahead of our estimate of INR2.0b.However, PAT belies the modest core operating performance. PPoP (excl.one-time gain) was up only 14% YoY, missing estimate by 6%. While disbursements in most segments were in line with past trends, we note of a strong pick-up in 2W disbursements (36% YoY, 55% QoQ). We believe this is a conscious strategy by management to focus more on this segment to maintain its leadership position. Disbursements in MSME financing were INR24b, in line with the trend of INR23-25b in the past four quarters. The sluggish trend reflects the lingering impact of demonetization and GST on SCUF's traditional customer segment.Disbursements in gold finance were also modestly below the quarterly trend of the past few quarters.