Shriram Finance Reports 16.62% Growth in AUM for Q1
By ScanX News Team
Shriram Finance Limited (SFL) announced robust Q1 financial results. Assets Under Management (AUM) increased by 16.62% year-over-year to Rs. 2,72,249.01 crores. Net profit grew by 8.84% to Rs. 2,155.73 crores, while total income rose by 20.11% to Rs. 11,541.76 crores. Net Interest Income increased by 12.55% to Rs. 6,026.43 crores. The company maintained stable asset quality with improved Gross Stage 3 and Net Stage 3 asset ratios. SFL showed growth across various segments, with notable increases in Farm Equipment, MSME, and Passenger Vehicles. The company serves 97.19 lakh customers through 3,225 branches and 79,186 employees.
*this image is generated using AI for illustrative purposes only.
Shriram Finance Limited (SFL), one of India's largest retail asset financing NBFCs, has announced its financial results for the first quarter, showcasing robust growth across key metrics.
Assets Under Management Surge
The company reported a significant 16.62% year-over-year increase in Assets Under Management (AUM), reaching Rs. 2,72,249.01 crores. This marks a substantial rise from Rs. 2,33,443.66 crores recorded in the same period last year and Rs. 2,63,190.27 crores at the end of the previous fiscal year.
Profit and Revenue Growth
SFL's net profit after tax grew by 8.84% to Rs. 2,155.73 crores, compared to Rs. 1,980.59 crores in the same quarter of the previous year. The company's total income saw a notable increase of 20.11%, rising from Rs. 9,609.71 crores to Rs. 11,541.76 crores.
Net Interest Income and EPS
The Net Interest Income stood at Rs. 6,026.43 crores, marking a 12.55% increase from Rs. 5,354.47 crores in the corresponding quarter of the previous year. Earnings per share (EPS) also improved, with basic EPS rising by 8.73% to Rs. 11.46, up from Rs. 10.54.
Asset Quality
The company maintained a stable asset quality profile:
- Gross Stage 3 assets ratio improved to 4.53% from 5.39% year-over-year
- Net Stage 3 assets ratio decreased to 2.57% from 2.71% year-over-year
- The provision coverage ratio for Stage 3 assets stood at 44.31%
Segment-wise Performance
SFL's diverse portfolio showed growth across various segments:
| Segment | AUM (Rs. crores) | YoY Growth |
|---|---|---|
| Commercial Vehicles | 123,131.89 | 12.27% |
| Passenger Vehicles | 56,634.76 | 23.17% |
| MSME | 38,824.26 | 34.80% |
| Two Wheelers | 15,856.30 | 22.83% |
| Construction Equipment | 16,535.36 | -2.97% |
| Farm Equipment | 5,827.48 | 46.34% |
| Personal Loans | 10,284.91 | 15.24% |
| Gold Loans | 5,154.05 | -15.82% |
Expanded Network and Customer Base
Shriram Finance boasts a pan-India presence with 3,225 branches and an employee strength of 79,186, serving 97.19 lakh customers.
Management Commentary
Y.S. Chakravarti, Managing Director & CEO, commented on the results: "Our performance demonstrates Shriram Finance's resilience and growth potential. The significant increase in AUM and improved profitability reflect our strong market position and effective business strategies. We remain committed to serving our diverse customer base and driving sustainable growth across all our business segments."
Looking Ahead
With its strong financial performance and expanding presence, Shriram Finance Limited is well-positioned to capitalize on the growing demand for retail asset financing in India. The company's focus on diversified product offerings and pan-India reach continues to be key drivers for its sustained growth in the competitive NBFC sector.
Historical Stock Returns for Shriram Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.79% | -4.59% | -8.78% | +20.37% | +14.94% | +351.04% |
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