SHRIRAM FINANCE LIMITED - Quarterly Result Update Q4'425

Shriram Finance Q4 results: Healthy AUM growth and asset quality, margin declines, below street’s estimate Shriram Finance has posted 7% increase in the net profit to Rs 2143.77 crore on consolidated basis in the quarter ended March 2025 (Q4FY2025). The company has posted 5% growth in the PBT to Rs 2771.98 crore. The company has maintained stable asset quality in Q4FY2025. The NIM declined to 8.25% in Q4FY2025 from 8.48% in the previous quarter and 9.02% in the corresponding quarter last year. The net interest income (NII) of the company increased 13% yoy to Rs 6051.2 crore in Q4FY2025. The company has maintained healthy loan growth at 17% at end March 2025. The Asset under Management (AUM) increased 17% to Rs 263190 crore at end March 2025. Further, the company has exhibited improvement in the asset quality, with NNPA ratio declining to 2.64% in Q4FY2025. Shriram Finance reported 19% rise in Income from operations at Rs 10789.51 crore on a consolidated basis. Other income jumped 59% to Rs 670.74 crore compared with Rs 420.58 crore in Q4FY2024. The total income moved up 21% to Rs 11460.25 crore. Interest expense jumped 31% to Rs 5223.99 crore, while other expenses moved up 19% to Rs 1729.93 crore. Ensuing Gross profit increased 11% to Rs 4506.33 crore. Depreciation declined 11% to Rs 171.06 crore, while provision and write offs galloped 24% to Rs 1563.29 crore. PBT moved up 5% to Rs 2771.98 crore. Effective tax rate stood at 22.8% compared to 26.4% in the corresponding period last year. The share of profit of associate declined 48% to Rs 4.38 crore. The net profit of the company improved 11% to Rs 2143.77 crore in Q4FY2025. The final bottom line after profit from discontinued operations of nil in Q4FY25 compared with Rs 72.46 crore in Q4FY24, rose 7% to Rs 2143.77 crore in Q4FY2025. The company has final interim dividend of 150% i.e. Rs 3.0/- per equity share of face value Rs.2/- each and total dividend of Rs 9.9 for the Financial Year 2024-25.