Capitaline

Results 25-Jan-25

Analysis

Shriram Finance

AUM growth healthy at 19%

Shriram Finance has posted 74% surge in the net profit to Rs 3246.85 crore on consolidated basis in the quarter ended December 2024 (Q3FY2025). The company has booked Rs 1553.66 crore as gains from sale of entire stake in subsidiary Shriram Housing Finance Company during the quarter. The company has posted 13% growth in the PBT before exception gains.

The company has maintained stable asset quality in Q3FY2025. The NIM declined to 8.48% in Q3FY2025 from 8.74% in the previous quarter and 8.99% in the corresponding quarter last year. The net interest income (NII) of the company increased 14% yoy to Rs 5822.7 crore in Q3FY2025.

The company has maintained strong and steady loan growth at 19% at end December 2024. The Asset under Management (AUM) increased 19% to Rs 254470 crore at end December 2024. Further, the company has maintained stable asset quality, with NNPA ratio at 2.68% in Q3FY2025.

Shriram Finance reported 16% increase in income from operations at Rs 10340.84 crore on a consolidated basis. Other income jumped to Rs 364.63 crore compared with Rs 18.46 crore in Q3FY2024. The total income moved up 20% to Rs 10705.47 crore.

Interest expenses increased 28% to Rs 4751.26 crore, while other expenses moved up 23% to Rs 1707.31 crore. Ensuing Gross profit increased 11% to Rs 4246.90 crore. Depreciation moved up 10% to Rs 161.92 crore, while provision and write offs rose 6% to Rs 1325.83 crore.

PBT moved up 13% to Rs 2759.15 crore. The company has booked Rs 1553.66 crore gains on stake sale subsidiary, thus the PBT after exceptional gains jumped 77% to Rs 4312.81 crore. Effective tax rate stood at 25.1% compared to 25.5% in the corresponding period last year. The share of profit of associate increased 177% to Rs 3.38 crore. The minority interest declined 76% to Rs 1.79 crore. The net profit of the company improved 78% to Rs 3233.66 crore in Q3FY2025. The profit from discontinued operation dipped 76% to Rs 13.19 crore. The final bottomline of the company increased 74% to Rs 3246.85 crore in Q3FY2025.

The company has declared second interim dividend of 125% i.e. Rs 2.50/- per equity share of face value Rs 2 each fully paid up for the Financial Year 2024-25

Business performance and Asset quality

AUM of the company increased 19% yoy to Rs 254470 crore end December 2024. The commercial vehicle loan book increased 13% yoy to Rs 115767 crore, passenger vehicle 25% to Rs 51884 crore, construction equipment 10% to Rs 17861 crore, farm equipment 42% to Rs 4776 crore, MSME 50% to Rs 34632 crore and two wheelers 27% to Rs 15411 crore. However, the gold loan AUM declined 7% to Rs 5488 crore and personal loans fell 9% to Rs 8651 crore end December 2024 over December 2023.

The borrowings of the company increased 26% to Rs 223460 crore end December 2024.

The branch network of the company increased to 3196 branches with 9.44 million customers at end December 2024. The employee count of the company stood at 79405 at end December 2024.

The gross stage 3 assets ratio rose slightly to 5.38% at end December 2024 and Net NPA ratio to 2.68% at end December 2024. The company has maintained NPA coverage ratio at 51.6% at end December 2024.

Book value of the company on a consolidated basis stood at Rs 292.7 per share at end December 2024. The adjusted book value increased to Rs 257.9 per share at end December 2024.

Financial Performance 9MFY2025:

For the nine months ended December 2024 (9MFY2025), Shriram Finance reported 20% rise in Income from operations at Rs 29518.13 crore. Other income declined 10% to Rs 881.09 crore compared with Rs 977.37 crore in 9MFY2024. The total income moved up 19% to Rs 30399.22 crore.

Interest expense increased 22% to Rs 13230.59 crore, while other expenses rose 20% to Rs 4768.73 crore. Ensuing Gross profit increased 16% to Rs 12399.90 crore. Depreciation increased 14% to Rs 474.26 crore, while provision and write offs moved up 15% to Rs 3748.37 crore.

PBT moved up 16% to Rs 8177.27 crore. The company has booked Rs 1553.66 crore gains on stake sale subsidiary, thus the PBT after exceptional gains jumped 38% to Rs 9730.93 crore. Effective tax rate stood at 29.9% compared to 25.5% in the corresponding period last year.

The share of profit of associate increased 64% to Rs 7.93 crore. The net profit of the company improved 39% to Rs 7269.35 crore in 9MFY2025. The profit from discontinued operation increased 10% to Rs 140.70 crore. The final bottomline of the company increased 38% to Rs 7410.05 crore in 9MFY2025.

Shriram Finance: Consolidated Results
Particulars	2412 (3)	2312 (3)	Var %	2412 (9)	2312 (9)	Var %	2403 (12)	2303 (12)	Var %
Income from operations	10340.84	8908.84	16	29518.13	24522.39	20	33599.66	29205.87	15
Other Income	364.63	18.46	1875	881.09	977.37	-10	1397.95	1302.52	7
Total Income	10705.47	8927.30	20	30399.22	25499.76	19	34997.61	30508.39	15
Interest Expenses	4751.26	3706.89	28	13230.59	10816.29	22	14806.12	12931.27	14
Other expenses	1707.31	1384.38	23	4768.73	3971.73	20	5420.68	4593.65	18
Gross profit	4246.90	3836.03	11	12399.90	10711.74	16	14770.81	12983.47	14
Depreciation	161.92	146.71	10	474.26	415.36	14	568.83	600.69	-5
Profit before tax and Provisions	4084.98	3689.32	11	11925.64	10296.38	16	14201.98	12382.78	15
Provisions and write off	1325.83	1249.70	6	3748.37	3256.86	15	4518.34	4169.06	8
Profit before tax	2759.15	2439.62	13	8177.27	7039.52	16	9683.64	8213.72	18
EO	1553.66	0.00	-	1553.66	0.00	-	0.00	0.00
PBT after EO	4312.81	2439.62	77	9730.93	7039.52	38	9683.64	8213.72
Provision for tax	1080.74	621.29	74	2447.01	1794.91	36	2493.16	2202.25	13
Net profit	3232.07	1818.33	78	7283.92	5244.61	39	7190.48	6011.47	20
Share of profit/loss of associate	3.38	1.22	177	7.93	4.83	64	7.78	8.56	-9
Minority interest	1.79	7.35	-76	22.50	20.03	12	32.51	8.99	-
PAT	3233.66	1812.20	78	7269.35	5229.41	39	7165.75	6011.04	19
P/(L) from discontinued operations net of tax	13.19	54.04	-76	140.70	128.17	10	200.63	0.00	-
Net profit after discontinued operations	3246.85	1866.24	74	7410.05	5357.58	38	7366.38	6011.04	23
EPS*(Rs)	44.0	38.6		43.8	38.0		38.1	32.0
Adj BV (Rs)	257.9	220.3		257.9	220.3		226.9	200.4
* Annualized on current equity of Rs 376.06 crore. Face Value: Rs 2, Figures in Rs Crore
Source: Capitaline Corporate Database

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