SSPL WEALTH PVT LTD

Shriram Finance

27-Jul-24 07:47 Hrs IST

Shriram Finance has posted storing 19% surge in the net profit to Rs 2022.80 crore on consolidated basis in the quarter ended June 2024 (Q1FY2025). The company has witnessed sequential decline in the net interest margin to 8.79% in Q1FY2025 from 9.02% in the previous quarter, while remained higher than 8.33% in the corresponding quarter last year. The net interest income (NII) of the company increased 21% yoy to Rs 5354.5 crore in Q1FY2025.

The company has also maintained strong and steady loan growth at 21% at end June 2024. The Asset under Management (AUM) increased 21% to Rs 233444 crore at end June 2024. Further, the company has exhibited an improvement in the asset quality, while reducing the NNPA ratio in Q1FY2025.

Shriram Finance Company reported 22% rise in Income from operations at Rs 9362.79 crore on a consolidated basis. Other income declined 15% to Rs 246.92 crore compared with Rs 290.06 crore in Q1FY2024. The total income moved up 20% to Rs 9609.71 crore.

Interest expense increased 18% to Rs 4128.91 crore, while other expenses rose 17% to Rs 1473.18 crore. Ensuing Gross profit increased 24% to Rs 4007.62 crore. Depreciation increased 16% to Rs 153.48 crore, while provision and write offs galloped 35% to Rs 1187.55 crore.

PBT moved up 20% to Rs 2666.59 crore. Effective tax rate stood at 25.7% compared to 25.8% in the corresponding period last year. The share of profit of associate rose 11% to Rs 1.17 crore.

The net profit of the company improved 20% to Rs 1973.92 crore in Q1FY2025. The profit from discontinued operation dipped 26% to Rs 48.88 crore. The final bottomline of the company increased 19% to Rs 2022.80 crore in Q1FY2025.

Business performance and Asset quality

AUM of the company increased 21% yoy to Rs 233444 crore end June 2024. The commercial vehicle loan book increased 14% yoy to Rs 109679 crore, passenger vehicle 27% to Rs 45982 crore, construction equipment 17% to Rs 17041 crore, farm equipment 16% to Rs 3982 crore, MSME 44% to Rs 28802 crore, two wheelers 29% to Rs 12909 crore, gold 23% to Rs 6123 crore and personal loans 13% to Rs 8925 crore end June 2024 over June 2023.

The borrowings of the company increased 18% to Rs 191750 crore end June 2024.

The branch network of the company stood at 3095 branches with 8.71 million customers at end June 2024. The employee count of the company stood at 75813 employees at end June 2024.

The gross stage 3 assets ratio declined to 5.395% at end June 2024 and Net NPA ratio notched up 2.71% at end June 2024. The company has maintained NPA coverage ratio at 51.15% at end June 2024.

Book value of the company on a consolidated basis stood at Rs 1342.2 per share at end June 2024. The adjusted book value increased to Rs 1181.0 per share at end June 2024.

Financial Performance FY2024

For the year ended March 2024 (FY2024), Shriram Finance reported 19% rise in Income from operations at Rs 34698.41 crore. Other income increased 32% to Rs 1714.58 crore compared with Rs 1302.52 crore in FY2023. The total income moved up 19% to Rs 36412.99 crore.

Interest expense increased 20% to Rs 15521.76 crore, while other expenses rose 26% to Rs 5791.13 crore. Ensuing Gross profit increased 16% to Rs 15100.10 crore.

Depreciation declined 2% to Rs 587.60 crore, while provision and write offs moved up 9% to Rs 4552.33 crore. PBT increased 21% to Rs 9960.17 crore.

Effective tax rate stood at 25.8% compared to 26.8% in the corresponding period last year. The share of profit of associate declined 9% to Rs 7.78 crore. The final bottomline of the company improved 23% to Rs 7366.38 crore in FY2024.

Shriram Finance: Consolidated Results
Particulars	2406 (3)	2306 (3)	Var %	2403 (12)	2303 (12)	Var %
Income from operations	9362.79	7687.95	22	33599.66	29205.87	15
Other Income	246.92	290.06	-15	1532.88	1302.52	18
Total Income	9609.71	7978.01	20	35132.54	30508.39	15
Interest Expenses	4128.91	3487.54	18	14806.12	12931.27	14
Other expenses	1473.18	1262.37	17	5420.68	4593.65	18
Gross profit	4007.62	3228.10	24	14905.74	12983.47	15
Depreciation	153.48	131.87	16	568.83	600.69	-5
Profit before tax and Provisions	3854.14	3096.23	24	14336.91	12382.78	16
Provisions and write off	1187.55	878.61	35	4518.34	4169.06	8
Profit before tax'	2666.59	2217.62	20	9818.57	8213.72	20
Provision for tax	686.00	572.18	20	2493.16	2202.25	13
Net profit	1980.59	1645.44	20	7325.41	6011.47	22
Share of profit/loss of associate	1.17	1.05	11	7.78	8.56	-9
Minority interst	7.84	6.95	13	32.51	8.99	262
PAT	1973.92	1639.54	20	7300.68	6011.04	21
P/(L) from discontinued operations net of tax	48.88	65.70	-26	65.70	0.00	-
Net profit after discontinued operations	2022.80	1705.24	19	7366.38	6011.04	23
EPS*(Rs)	210.1	174.5	'	194.3	160.0	'
Adj BV (Rs)	1181.0	1050.1	'	1134.7	1002.2	'
* Annualized on current equity of Rs 375.91 crore. Face Value: Rs 10, Figures in Rs Crore
Source: Capitaline Corporate Database