REPEAT
Earnings Outlook
This story was originally published at 09:18 IST on 26 July 2024
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By Kshipra Petkar
MUMBAI – The net profit of Shriram Finance Ltd for Apr-Jun is seen rising 21.1% on year to 20.29 bln rupees, as per the average of estimates by eight brokerages. On a sequential basis, the company's bottom line is seen rising 4.3%. The non-bank lender will announce its results on Friday.
Shriram Finance's net interest income is expected to rise 26.2% on year to 53 bln rupees for the reporting quarter. Sequentially, it is seen rising 4.2%. "NIM (net interest margin) is expected to remain stable on account of yield improvement, led by new disbursement at higher rates negating the impact of the increasing cost of borrowings," Emkay Global said in a pre-earnings report. In Jan-Mar, the net interest margin was 9.02%.
The non-bank lender's commentary on growth in assets under management will be a key parameter to monitor, brokerages said. IDBI Capital expects growth in assets under management at 19.9% on year. As of Mar 31, the company's total assets under management were at 2.24 trln rupees, with the commercial vehicles segment contributing the most, close to 48%, followed by passenger vehicles at 19%, and the micro, small and medium enterprises segment at nearly 12%, according to an investor presentation by Shriram Finance.
Emkay Global expects the credit cost to remain broadly stable at nearly 2.3% on account of stable asset quality with gross stage-3 and net stage-3 assets at 5.5% and 2.8%, respectively. Further, the non-bank lender's commentary on loan growth in the commercial vehicles segment and on asset quality in the two-wheeler and personal loan segments will be in focus.
On the National Stock Exchange on Tuesday, shares of Shriram Finance closed over 3% lower at 2,739.20 rupees.
Following are the Apr-Jun earnings estimates of Shriram Finance, in mln rupees, based on reports from eight brokerages:
| Brokerage | Net Interest Income | Net Profit |
| Elara Securities (India) Pvt Ltd | 55,305.00 | 20,234.00 |
| Emkay Global Financial Services Ltd | 53,263.00 | 20,065.00 |
| IDBI Capital Market Services Ltd | 52,487.00 | 20,144.00 |
| Kotak Institutional Equities | 52,245.00 | 20,477.00 |
| Motilal Oswal Financial Services Ltd | 52,420.00 | 20,108.00 |
| Nirmal Bang Equities Pvt Ltd | 51,076.00 | 20,663.00 |
| Nomura Equity Research | 54,500.00 | 20,500.00 |
| Nuvama Wealth Management Ltd | 52,700.00 | 20,100.00 |
| Average | 52,999.50 | 20,286.38 |
End
Edited by Rajeev Pai
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