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Informist, Friday, Jan. 24, 2025

 

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--Shriram Finance Oct-Dec net profit INR 35.70 bln vs INR 18.18 bln year ago
--Analysts saw Shriram Finance Oct-Dec net profit INR 23.99 bln
--Shriram Finance Oct-Dec total income INR 107.05 bln vs INR 89.27 bln yr ago
--Shriram Finance to pay INR 2.50/share interim dividend
--Shriram Finance Apr-Dec net profit INR 76.22 bln vs INR 52.45 bln year ago
--Shriram Fin Apr-Dec total income INR 303.99 bln vs INR 255.00 bln year ago
--Shriram Finance capital adequacy ratio at 21.00% as on Dec 31
--Shriram Finance gross NPA 5.38% on Dec 31 vs 5.32% qtr ago, 5.66% yr ago
--Shriram Finance net NPA 2.68% on Dec 31 vs 2.64% qtr ago, 2.72% year ago
--Shriram Finance NPA Provision Coverage Ratio 51.64% as on Dec 31
--Shriram Finance Oct-Dec NII INR 58.23 bln, up 14.3% YoY 
--Shriram Finance AUM at INR 2.54 tln as on Dec 31, up 18.8% YoY 
--Shriram Finance Oct-Dec NIM 8.48% vs 8.74% qtr ago, 8.99% year ago
--Shriram Finance: Record date for interim dividend Jan. 31
 

 

By Pratiksha

 

NEW DELHI – Shriram Finance Ltd.'s net profit for the December quarter nearly doubled on year to INR 35.70 billion. This growth, the highest in two years, came mainly on the back of robust growth in assets under management and net interest income, the company's quarterly results released Friday showed. The Chennai-based non-banking finance company's net profit for Oct-Dec exceeded analysts' expectations. Shriram Finance's net profit was seen rising 31.9% on year to INR 23.99 billion, according to an average of estimates from nine brokerages.

 

During the reporting quarter, the company's total income rose 19.9% on year to INR 107.05 billion, primarily due to a 20% on-year jump in interest income to INR 103.41 billion. In Oct-Dec, the company's net interest income rose 14.31% on year to INR 58.23 billion. Analysts had expected net interest income to rise 11.9% on year to INR 57.02 billion for the reporting quarter.

 

The company's assets under management rose 18.8% on year to INR 2.54 trillion as of Dec. 31. Of the total assets under management, the shares of the commercial vehicle, passenger vehicle, and micro, small, and medium enterprise segments were 45.5%, 20.4%, and 13.6%, respectively, in the December quarter. The gold loan and personal loan segments contributed growth of 2.2% and 3.4%, respectively, to the lender's total assets under management.

 

The company's asset quality saw a slight deterioration sequentially, with the gross non-performing asset ratio rising to 5.38% as of Dec. 31, from 5.32% reported as of Sept. 30. However, it was better than the 5.66% reported as of Dec. 31, 2023. The net non-performing asset ratio was at 2.68% as of Dec. 31, up from 2.64% as of Sept. 30, but lower than 2.72% at the end of December 2023. The non-performing asset provision coverage ratio fell to 51.64% as of Dec. 31, from 51.70% at the end of the previous quarter.

 

The company's net interest margin moderated to 8.48% in Oct-Dec from 8.74% reported a quarter ago, and 8.99% reported a year ago. The lender declared a second interim dividend of INR 2.50 per fully paid up equity share of face value INR 2 for the financial year 2024-25 (Apr-Mar). The record date for payment of the second interim dividend is Jan. 31.

 

Shriram Finance's capital adequacy ratio was 21.00% as of Dec. 31, up from 20.16% at the end of the previous quarter. During Apr-Dec, the company's net profit rose to INR 76.22 billion from INR 52.45 billion a year ago, while total revenue increased to INR 303.99 billion from INR 255.00 billion a year ago. On Friday, shares of the company ended 0.4% lower at INR 527.45 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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