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Informist, Friday, Jul 26, 2024

--Shriram Finance Apr-Jun net profit 19.81 bln rupees 

--Shriram Finance Apr-Jun revenue 96.05 bln rupees 

--Shriram Finance Apr-Jun net profit 19.81 bln rupees vs 16.75 bln 

--Analysts saw Shriram Finance Apr-Jun net profit 20.29 bln rupees 

--Shriram Finance Apr-Jun revenue 96.05 bln rupees vs 80.03 bln 

--Shriram Finance gross NPA ratio 5.39% Jun 30 vs 5.45% qtr ago 

--Shriram Finance net NPA ratio 2.71% Jun 30 vs 2.70% qtr ago 

--Shriram Finance NPA provision coverage ratio 51.15% as on Jun 30 
--Shriram Finance AUM 2.33 trln rupees as on Jun 30, up 20.8% YoY 

--Shriram Finance Apr-Jun NII 53.54 bln rupees vs 44.39 bln year ago 

--Shriram Finance Apr-Jun NIM 8.79% vs 9.02% qtr ago 

By Kshipra Petkar

MUMBAI – Shriram Finance's net profit for the quarter ended June rose by 18.2% on year to 19.81 bln rupees, mainly due to a rise in interest income and assets under management. The bottomline marginally missed analyst's expectations of 20.29 bln rupees. 

The total income of the non-bank lender income increased 20% on year to 96.10 bln rupees for the reporting quarter. The net interest income was up 20.6% on year to 53.54 bln rupees. The net interest margin moderated to 8.79% in Apr-Jun from 9.02% reported a quarter ago, however increased from 8.33% reported a year ago.

The total revenue from operations increased by 20.02% on year to 96.05 bln rupees for the reporting quarter. The assets under management were up 20.8% on year to 2.33 trln rupees as of Jun 30.

The non-bank lender's asset quality saw improvement sequentially with the gross non-performing asset ratio falling to 5.39% as of Jun 30 from 5.45% reported a quarter ago. The net non-performing asset ratio increased to 2.71% as of Jun 30 from 2.70% seen a quarter ago.

The provision coverage ratio for gross stage-3 assets was at 51.15% as of Jun 30, lower compared with 51.79% a quarter ago and 52.55% a year ago.

The share of commercial vehicles, passenger vehicles and MSME segments form 46.98%, 19.70% and 12.34% of the total AUM, respectively, as per the non-bank lenders investor presentation. The gold segment contributes 3.82% to the total AUM.

The non-bank lender's branches increased to 3,095 as of Jun 30 from 2,930 branches a year ago.

STAKE SALE IN HOUSING ARM

In the investor presentation, the non-bank lender said that the deal with Valiant Partners LP to sell their stakes in Shriram Housing Finance to Warburg Pincus for 46.3 bln rupees, will get regulatory approval by the end of Oct-Dec. In May, the company had said they expect to complete the transaction by Feb 7.

Shriram Finance Ltd will receive 39 bln rupees from the sale of its investment in the subsidiary, resulting in an increase in the capital adequacy ratio by around 80 basis points. Currently, the non-bank lender's capital adequacy ratio is at 20.29% as of Jun 30. At 1418 IST, shares of Shriram Finance traded 10% higher at 2,946.90 rupees on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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