Shriram Finance Limited has released its financial results for the second quarter (Q2) and the first half of FY2025, showcasing impressive growth across various key performance indicators. As one of India’s largest retail asset financing non-banking finance companies (NBFCs), Shriram Finance continues to solidify its position in the financial sector.
Financial Highlights
1. Standalone Performance:
- Profit After Tax: Shriram Finance reported a standalone profit after tax of ₹2,071.26 crore, marking an 18.30% increase compared to ₹1,750.84 crore in Q2 FY24. This growth highlights the company’s robust operational strategies and effective financial management.
- Earnings Per Share (EPS): The basic standalone EPS improved by 18.04% to ₹55.09 from ₹46.67 in the same quarter last year. A rising EPS indicates strong profitability and is a positive signal for investors.
2. Standalone Net Interest Income:
- The standalone net interest income for Q2 FY25 reached ₹5,606.74 crore, a significant rise of 16.37% from ₹4,818.18 crore in Q2 FY24. This growth reflects the company’s successful lending strategies and its ability to manage interest income effectively.
3. Consolidated Performance:
- The consolidated profit after tax climbed by 20.17% to ₹2,153.27 crore, up from ₹1,791.83 crore during the same period last year. This increase showcases the strength of Shriram Finance’s diversified operations.
- The consolidated basic EPS rose 19.58% to ₹56.93 compared to ₹47.61 a year earlier, further underlining the company’s financial health.
4. Total Assets Under Management (AUM):
- As of September 30, 2024, the total AUM stood at ₹243,042.55 crore, reflecting a remarkable 19.94% growth from ₹202,640.96 crore a year ago. The growth in AUM indicates Shriram Finance’s ability to attract and manage a larger pool of assets effectively.
Dividend Declaration and Stock Split
In a move that reflects Shriram Finance’s commitment to enhancing shareholder value, the Board of Directors has declared an interim dividend of ₹22 per equity share, amounting to 220% of the face value. The dividend is set to be paid to eligible shareholders on or before November 24, 2024.
Additionally, the company approved a 5-for-1 stock split, reducing the face value of shares from ₹10 to ₹2 each. This strategic decision aims to increase liquidity in the market and make shares more accessible to retail investors. However, this split is subject to approval by the company’s shareholders through a postal ballot.
Strategic Positioning
Shriram Finance is part of the Shriram Group, which is well-established in consumer finance, stock broking, distribution, life and general insurance, and housing finance. With assets under management exceeding ₹2.43 trillion, Shriram Finance has positioned itself as a formidable player in the Indian financial landscape.
The positive financial results, combined with the declared dividend and stock split, underscore the company’s solid growth trajectory and commitment to delivering value to its shareholders. As the financial sector continues to evolve, Shriram Finance is poised to leverage its strengths and expand its market presence further.
Conclusion
The recent financial results from Shriram Finance illustrate a company on the rise, demonstrating robust growth in profits, income, and asset management. The strategic initiatives undertaken by the Board of Directors, including generous dividends and stock splits, reflect a forward-thinking approach that prioritizes shareholder value.
As investors and stakeholders closely monitor Shriram Finance’s progress, it is clear that the company is not only adapting to market demands but is also setting itself up for sustained success in the future. For those interested in the NBFC sector, Shriram Finance remains a key player worth watching.
Disclaimer
The information provided in this blog is for informational purposes only and should not be considered financial advice. While efforts have been made to ensure the accuracy of the content, Shriram Finance’s financial results and market conditions can change rapidly. Readers are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions. The author and publisher do not accept any liability for losses or damages resulting from the use of this information.
Leave a Reply