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Informist, Friday, Oct. 25, 2024

 

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--Shriram Finance Jul-Sept net profit INR 20.71 bln vs INR 17.51 bln 
--Analysts saw Shriram Finance Jul-Sept net profit INR 20.83 bln 
--Shriram Finance Jul-Sept net profit INR 20.71 bln 
--Shriram Finance Jul-Sept revenue INR 100.90 bln vs INR 85.55 bln year ago 
--Shriram Finance capital adequacy ratio at 20.16% as on Sept 30 
--Shriram Finance NPA provision coverage ratio 51.70% as on Sept 30 
--Shriram Finance OKs 5-for-1 stock split 
--Shriram Finance net NPA ratio 2.64% Sept 30 vs 2.71% qtr ago 
--Shriram Finance gross NPA ratio 5.32% Sept 30 vs 5.39% qtr ago 
--Shriram Finance to pay INR 22 per share interim dividend 
--Shriram Finance AUM INR 2.43 tln as on Sept 30, up 19.9% YoY 
--Shriram Finance Apr-Sept revenue INR 196.82 bln vs INR 165.58 bln year ago 
--Shriram Finance Apr-Sept net profit INR 40.52 bln vs INR 34.26 bln yr ago 
--Shriram Finance Jul-Sept NIM 8.74% vs 8.79% qtr ago 
--Shriram Finance Jul-Sept NII INR 56.1 bln vs INR 48.2 bln yr ago 
--Shriram Finance AUM INR 2.43 tln as on Sept 30, up 19.9% YoY

 

By Pratiksha

 

NEW DELHI – Shriram Finance Ltd's net profit for the quarter ended September rose 18.3% on year to INR 20.71 billion, on the back of a steady rise in interest income and assets under management, the company's quarterly results released Friday showed. The Chennai-based non-banking finance company's net profit for Jul-Sept was slightly lower than analysts' expectations.

 

Shriram Finance's net profit was seen rising 19.0% on year to INR 20.83 billion, according to an average of estimates from eight brokerages. On Friday, shares of the company ended 4.7% lower at INR 3092.65 on the National Stock Exchange. The company announced its earnings after the market hours.

 

The company's total income for the reported quarters rose 17.9% on year to INR 100.90 billion, primarily due to a 19.5% on year jump in interest income to INR 98.15 billion. In Jul-Sept, the company's net interest income rose 16.4% on year to INR 56.1 billion. Net interest income was expected to rise 21.0% on year to INR 55.58 billion for the reporting quarter, according to an average of estimates from the eight brokerages.

 

The non-bank lender's assets under management rose 19.9% on year to INR 2.43 trillion as of Sept. 30.

 

Of the total assets under management, the share of commercial vehicles, passenger vehicles, and Micro, Small and Medium Enterprises segments formed 46.16%, 20.16% and 13.29%, respectively, in the quarter ended September. The gold and personal loans segment contributed growth of 2.50% and 3.40%, respectively, of the non-bank lender's total assets under management.

 

The non-banking finance company's asset quality saw a slight improvement sequentially, with the gross non-performing asset ratio falling to 5.32% as of Sept. 30 from 5.39% reported a quarter ago. The net non-performing asset ratio dropped to 2.64% as of Sept. 30 from 2.71% a quarter ago. The non-performing asset provision coverage ratio rose to 51.70% as of Sept. 30, from 51.15% a quarter ago. 

 

The company's net interest margin moderated to 8.74% in Jul-Sept from 8.79% reported a quarter ago, and 8.93% reported a year ago. 

 

The board of directors of the company approved the split of one fully paid equity share of face value of INR 10 each held by members of the company into five fully paid equity shares of face value of INR 2 each. The company also declared an interim dividend of INR 22 per equity share of face value INR 10 each fully paid up for 2024-25 (Apr-Mar). 

 

Shriram Finance's capital adequacy ratio was 20.16% as of Sept. 30, down from 20.29% at the end of the previous quarter. During Apr-Sept, the company's net profit rose to INR 40.52 billion from INR 34.26 billion a year ago, while revenue from operations increased to INR 196.82 billion from INR 165.58 billion a year ago.  End

 

Edited by Vidhi Verma

 

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