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Informist, Friday, Apr. 25, 2025

 

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--Shriram Finance Jan-Mar NIM 8.25% vs 8.48% qtr ago, 9.02% year ago 
--Shriram Finance AUM at INR 2.63 tln as on Mar 31, up 17.05% on year 
--Shriram Finance Jan-Mar NII INR 60.51 bln, up 13.4% on year 
--Shriram Finance NPA provision coverage ratio 43.28% as on Mar 31 
--Shriram Finance net NPA ratio 2.64% on Mar 31 vs 2.68% qtr ago 
--Shriram Finance gross NPA ratio 4.55% on Mar 31 vs 5.38% qtr ago 
--Shriram Finance capital adequacy ratio at 20.66% as on Mar 31 
--Shriram Finance FY25 total income INR 418.59 bln vs INR 349.98 bln year ago 
--Shriram Finance FY25 net profit INR 97.61 bln vs INR 71.90 bln year ago 
--Shriram Finance to pay INR 3 per share final dividend for FY25 
--Shriram Finance Jan-Mar total income INR 114.60 bln vs INR 94.98 bln yr ago 
--Shriram Finance Jan-Mar net profit INR 21.39 bln vs INR 19.46 bln year ago 
--Analysts saw Shriram Finance Jan-Mar net profit INR 21.70 bln 
--Shriram Finance Jan-Mar net profit INR 21.39 bln 

 

By Pratiksha

 

NEW DELHI – Shriram Finance Ltd.'s net profit for the March quarter rose 10.0% on a year-on-year basis due to a rise in assets under management and net interest income. The net profit was, however, lower than consensus estimates. The on-year rise in net profit was also the slowest in five quarters. 

 

The company posted a net profit of INR 21.39 billion for Jan-Mar, down 40.1% sequentially. An average of estimates from 11 brokerages had pegged net profit at INR 21.70 billion. On Friday, shares of Shriram Finance ended 6.0% lower at INR 655.20.

 

The Chennai-based non-banking finance company's total income rose 20.7% on year to INR 114.60 billion during the reporting quarter, primarily due to an 18.9% on-year jump in interest income to INR 107.90 billion, which boosted the bottom line. In Jan-Mar, the company's net interest income - the difference between interest earned and expended - rose 13.4% on year to INR 60.51 billion. Analysts had expected net interest income to rise 9.4% on year to INR 58.40 billion for the reporting quarter.

 

The company's assets under management rose 17.1% on year to INR 2.63 trillion as of Mar. 31.

 

Of the total AUM, the shares of the commercial vehicle, passenger vehicle, and micro, small, and medium enterprise segments were 45.1%, 20.6%, and 14.2%, respectively, in the March quarter. The gold loan and personal loan segments made up 1.8% and 3.6%, respectively, of the total AUM.

 

The commercial vehicle segment grew 10.9% on year to INR 1.19 trillion in Jan-Mar, while the MSME segment rose 42.7% on year to INR 374.14 billion, posting the biggest growth in the AUM pack in the reporting quarter. However, the gold loans declined 23.2% on year and 11.9% on quarter to INR 48.37 billion, the only sector to report a year-on-year fall in the March quarter.   

 

The company's asset quality saw an improvement both sequentially and annually, with the gross non-performing asset ratio falling to 4.55% as of Mar. 31, from 5.38% as of Dec. 31 and 5.45% a year ago. The net non-performing asset ratio was at 2.64% as of Mar. 31, down from 2.68% as of Dec. 31 and 2.70% a year ago. The non-performing asset provision coverage ratio fell to 43.28% as of Mar. 31, from 51.64% at the end of the previous quarter.

 

The company's net interest margin moderated to 8.25% in Jan-Mar from 8.48% reported a quarter ago, and 9.02% a year ago. The lender declared a final dividend of INR 3.00 per equity share of face value INR 2.00 each fully paid up for the financial year 2024-25 (Apr-Mar). 

 

Shriram Finance's capital adequacy ratio was 20.66% as of Mar. 31, down from 21.00% at the end of the previous quarter. In FY25, the company's net profit rose to INR 97.61 billion from INR 71.90 billion a year ago, while total income increased to INR 418.59 billion from INR 349.98 billion a year ago.

 

The company's banking and finance committee and allotment committee will meet between May 1 to Jul. 31 to consider raising funds by issuing redeemable non-convertible debt securities, including bonds in the onshore or offshore market on a private placement basis, the lender said. End

 

Edited by Saji George Titus

 

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