Shriram Finance Q1 earnings: Net profit rises 60% to ₹3,445 crore, NII advances 34%

Shriram Finance, the country's leading non-banking finance company, on Friday, July 24, reported a net profit of ₹3,445 crore in the first quarter of current financial year, marking an increase of 60% from ₹2,154 crore in the same period last year.

The company's net interest income during the quarter rose 34% to ₹8,056 crore from ₹6,026 crore in the year-ago period. Its revenue from operations advanced 16% annually to ₹13,394 crore from ₹11,536 crore.

Shriram Finance said that earning per share (EPS) increased by 29.41% and was ₹14.83 as against ₹11.46 recorded in the same period of the previous year.

The company's gross stage 3 assets, the credit-impaired loans that are overdue for more than 90 days, rose 19% and net stage three assets advanced 4.46%.

The Mumbai-based company's assets under management (AUM) rose by 16% in April-June period to ₹3.13 lakh crore compared with ₹2.72 lakh crore in the corresponding period of previous financial year.

Shriram Finance in an investor presentation said that its AUM for commercial vehicles rose 47% to ₹1.47 lakh shares, AUM for passenger vehicles advanced 22% to ₹68,650 crore, AUM for construction equipment jumped 4% to ₹12,373 crore, farm equipment advanced 2% to ₹7,030 crore and personal loan AUM jumped 4% to ₹11,420 crore.

MSME AUM advanced 13% to ₹41,962 crore, two-wheeler AUM gained 6% to ₹17,813 crore and gold loan AUM rose 2.39% to ₹7,513.7 crore, Shriram Finance noted.

During the quarter, Shriram Finance acquired 100% stake Shriram Overseas Investments Private Limited.

Shriram Finance shares succumbed to profit booking after hitting an intraday high of ₹1,051. The stock fell as much as 3.21% to hit an intraday low of ₹992.90.

As of 2:44 pm, Shriram Finance shares traded 2.22% lower at ₹1,002.65, underperforming the NIFTY50 index, which was down 0.41%.