Shriram Finance Ltd. Q4FY24 Result First Cut – Healthy numbers; Growth path looking strong
- Net interest income (NII) stood at Rs. 5,336 crores in Q4FY24, up 4.8% QoQ / 20.0% YoY and came in above street expectations.
- Operating profit for the quarter stood at Rs. 3,095 crores against Rs. 3,689 crores in Q3FY24 and Rs. 3,081 crores in the same quarter previous year.
- Standalone Profit after Tax increased to Rs. 1,946 crores in Q4FY24, up 7.0% QoQ / 48.7% YoY, largely in line with market estimates.
- Assets under management (AUM) grew to Rs. 2,25,862 crores as of 31 March 2024 from Rs. 2,14,233 crores as of 31 December 2023 and Rs. 2,02,641 crores as of 31 March 2023.
- NIM stood at 9.02% in Q4FY24, as against 8.99% in Q3FY24 and 8.55% in Q4FY23.
- RoA in the quarter stood at 3.19% as against 3.11% in Q3FY24 and 2.47% in Q4FY24.
- Cost-to-income ratio stood at 26.68% during the quarter, down 40bps QoQ / 347bps YoY, showcasing decent improvement.
- Capital adequacy ratio stood at 20.3% in Q4FY24, down from 21.0% in Q3FY24 and 22.6% from the same quarter in the previous year.
- Gross NPA decreased in Q4FY24 to 5.45% compared to 5.66% in Q3FY24 and 6.21% in Q4FY23.
- Net NPA stood at 2.72% in the quarter, down 2bps QoQ / down 49 bps YoY.
- The company’s subsidiary, Shriram Housing Finance, reported a net profit of Rs. 62 crores for the quarter, which was flat QoQ but grew significantly from Rs. 37 crores in Q4FY23.
- The board of directors recommended a final dividend of Rs. 15 per equity share. This is in addition to the two interim dividends of Rs. 20 and Rs. 10 per equity share announced earlier.