Shriram Finance Limited Q4 Results: PAT jumps 48.73%

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Synopsis:

Shriram Finance reported its Q’FY earnings, most of which are in line with the street expectations. The company's profit after tax (PAT) surged by 48.73%, accompanied by a 20% increase in net interest income (NII). With total revenue up by 6.49% QoQ, SFL demonstrates stability and growth potential. The management emphasised their commitment to high-yielding assets and anticipates slower growth in Q1 of FY25 due to decreased capital expenditure during the elections. The company is determined to accelerate bottom-line growth faster than its top-line expansion.

DATA Points:

  1. Total Revenue: 9,904.30; Up by 6.49% QoQ
  2. Total Operating Expense: 7,175.45; Up by 5.63% QoQ
  3. Net Income Before Taxes: 2,742; Up by 9.16% QoQ
  4. Dividend: ₹15/- per equity share

Introduction

On Friday, 26th April 26th, 2024, one of India’s largest retail NBFCs,  Shriram Finance Limited (SFL) (erstwhile known as Shriram Transport Finance Company Limited STFC) convened its Board Meeting in Mumbai to review and announce the audited financial results for Q4 and the financial year ending March 31st, 2024.

In the fourth quarter, that ended on 31 March 2024, the Consolidated Net Interest Income surged  reaching ₹5,543.47 crores. This is a jump of 22.27%, as compared to ₹4,533.63 crores in Q4 of the previous year. Concurrently, Consolidated Net Profit saw a substantial increase of 56.91%, totaling ₹2,021.28 crores. In the same quarter in FY’23, the Consolidated Net Profit was recoredd at ₹1,288.18 crores. Moreover, Consolidated EPS (basic) rose by 57.22% to ₹53.47, contrasting with ₹34.01 recorded in the same period of the previous year.

As of March 31st, 2024, the Total Assets under Management experienced a notable surge of 21.10%, reaching ₹224,861.98 crores, in contrast to ₹185,682.86 crores on March 31st, 2023, and ₹214,233.47 crores on December 31st, 2023.

Explore: Shriram Finance Limited Share Price

Shriram Finance Limited  Q4 Results: 5 Key Financial Highlights

  1. Shriram Finance Limited Q4 Results show a 22.27% jump in the Consolidated Net Interest Income for the fourth quarter.  It stood at ₹5,543.47 crores against ₹4,533.63 crores in Q3’FY23.
     
  2. The Consolidated profit after tax rose ₹7,398.89 crores. This is by 22.90% higher as compared to ₹6,020.03 crores in the last financial year.
  3. The Consolidated EPS (basic) surged by 57.22%, reaching ₹53.47, compared to ₹34.01 reported in the corresponding period of the previous year.
  4. Total Assets under Management stood at ₹224,861.98 crores. This is a 21.10% increase as compared to ₹185,682.86 crores as on 31 March, 2023 and ₹214,233.47 crores as on 31 December, 2023.
  5. The Board has approved a dividend of ₹15/- per equity share of nominal face value of ₹10/- for the FY 2023-24.

Additional Read129 Indian Companies to Release Q4 Results

Shriram Finance Limited  Q4 Results: Profitability Analysis

The  Shriram Finance Limited Q4 results are largely in line with the street estimates. Let us take a look at the standalone financial performance. The Net Interest Income (NII) surged by 20.02% to reach ₹5,336.06 crores, compared to ₹4,445.89 crores in Q4 of the preceding financial year. Similarly, the Profit After Tax witnessed a substantial increase of 48.73%, totalling ₹1,945.87 crores, compared to ₹1,308.31 crores reported in the Q4 of the previous financial year. Moreover, the earnings per share (basic) rose by 48.23% to ₹51.79, compared to ₹34.94 last year.

The standalone Net Interest Income (NII) for the FY 2024, saw a notable rise of 16.06%, reaching ₹19,686.85 crores, compared to ₹16,963.07 crores for the year ending on 31 March, 2023. Likewise, the profit after tax exhibited a significant increase of 20.26%, totaling ₹7,190.48 crores, as opposed to ₹5,979.34 crores in the preceding year. Furthermore, the earnings per share (basic) grew by 20.00% to ₹191.63, contrasting with ₹159.69 in the previous year.

Additional ReadQuarterly Results

Shriram Finance Limited  Q4 Results: Major Financial Metrics - (₹ in crores)

Metrics

Q4 FY 24

Q4 FY 23

FY24

FY23

Total Revenue from operations

9,904.30

7,966.45 

36,379.52 

30,476.78 

Total Income

9,918.30

7,979.75 

36,412.99

30,508.39

Finance Costs

4,197.46

3,361.23 

15,521.76 

12,931.27

Profit Before Tax 

2,742.85 

1,850.74

9,960.17

8,213.72

Net Profit After Taxes and Share of Profit/ (Loss) 

2,021.28 

1,288.18 

7,398.89 

6,020.03 

What the Future Holds for Shriram Finance Limited?

Shriram Finance Limited stands as one of India’s foremost retail asset financing Non-Banking Finance Companies (NBFCs), boasting Assets under Management (AUM) exceeding ₹2.24 trillion. A holistic finance provider, SFL operates with a vertically integrated business model, providing financing for a diverse array of products, ranging from loans tailored for micro, small, and medium enterprises (MSMEs), tractors and farm equipment, gold, personal loans, as well as working capital loans.

A stellar financial track record, characterized by rapid growth in Assets under Management (AUMs), along with their robust financial management practices, put Shriram Finance Limited in a promising position. Leveraging its strong distribution network network of 3,082 branches, work force of 74,645 that services over 83.97 lakhs of customers, the company seeks sustained growth and innovation. 

While the is confident of maintaining NIMS at 9%, they are expecting a slightly slower growth in Q1’FY 25 on the back of a slowdown in capex activities due to the elections going on. Adapting to evolving market dynamics, Shriram Finance anticipates continued success and aims to create enduring value for its stakeholders in the years ahead. 

Additional ReadAnnual Results

Conclusion

Shriram stands as a trailblazer in the NBFC Industry, boasting a robust rural footprint. Shriram Finance Limited emerges as a frontrunner among India's NBFCs, serving a vast clientele of 8.22 million (as of December 31, 2023), encompassing both private individuals and corporate entities nationwide.

​​Shriram Finance, as a proud member of the 49-year-old Shriram Group, has positioned itself as one of the most prominent retail NBFCs in the country. Providing credit solutions for a diverse range of needs, including commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, and personal, and small business loans, a reliable and respected financial conglomerate, ​​Shriram Finance strives to leave lasting impressions in the lives of their customers.

Results for the Fourth Quarter and Full Year Ended March 31, 2024

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

What were the key highlights of Shriram Finance Limited Q4 results?

Answer Field

Shriram Finance Limited's Q4 results showcased significant growth. The Consolidated Net Interest Income surged to ₹5,543.47 crores which is a jump of 22.27% from last year’s Q4.

As per the Shriram Finance Limited Q4 results, does the revenue show any change?

Answer Field

The total revenue increased by 6.49% quarter-over-quarter, reaching 9,904.30.

How much did the Total Assets under Management increase by compared to the previous year?

Answer Field

According to Shriram Finance Limited Q4 results, the Total Assets under Management witnessed a notable surge of 21.10%, reflecting substantial growth in the company's asset base.

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