Shriram Finance Q3 Results: Standalone net profit climbs 96% to ₹3,570 crore on one-time gain; interim dividend declared

Shriram Finance Ltd on Friday reported a stellar 96% rise in its standalone net profit to ₹3,570 crore for the third quarter of the current financial year (Q3 FY25) on the back of a one-time post-tax gain of ₹1,489 crore from the sale of its stake in its housing finance subsidiary. The said subsidiary is now known as Truhome Finance Ltd.

When excluding the profits of this sale, profit after tax increased to ₹2,080 crore, up 14.4% as against ₹1,818 crore in the year-ago period.

Shares of Shriram Finance ended lower on January 24 despite trading in green for almost the entire session. The stock closed 0.97% down at ₹524.65 apiece on the NSE, while its market capitalisation stood at ₹98,649.62 crore.

The company also declared an interim dividend of ₹2.50 per equity share of face value of ₹2 each fully paid up for the Financial Year 2024-25. The record date has been fixed as Friday, January 31 and the eligible shareholders will receive the payout by February 22, 2025.

“In furtherance of our intimations dated December 30, 2024 and January 17, 2025, we inform you that the Board of Directors of the Company at their meeting held today i.e. January 24, 2025 has inter-alia……Declared a second interim dividend of 125% i.e. ₹2.50 per equity share of face value ₹2 each fully paid up for the Financial Year 2024-25, subject to deduction of tax at source, if any, to be paid to those Members whose names appear in the Register of Members of the Company as on Friday, January 31, 2025 being the Record Date, for the purpose of payment of the said dividend. The second interim dividend payout will be made to eligible shareholders on or before Saturday, February 22, 2025,” the company said in a regulatory filing.

Net Interest Income (NII) income of the company for the reporting quarter grew to ₹5,823 crore, up 14.3% from ₹5,094 crore in the previous year.

The company’s Assets Under Management (AUM) saw substantial growth, increasing 18.8% year-on-year (YoY) for the quarter that ended December 31, 2024, to ₹2.54 lakh crore as compared to ₹2.14 lakh crore in the year-ago period.

Consolidated net profit of the company saw an increase of 73.4% YoY to ₹3,249 crore as against ₹1,874 crore in the previous year. Adjusted for the one-time gain, the profit fell by 9.5% YoY. Moreover, the consolidated Net Interest Income (NII) of Shriram Finance surged 13.8% to ₹5,590 crore in Q3 FY25 as compared to ₹4,911 crore in Q3 FY24.