Shriram Finance Q4 profit zooms 57% to Rs 2,021 crore
The company had registered a consolidated net profit of Rs 1,288 crore during the corresponding quarter of last year.
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MUMBAI: Shriram Finance on Friday reported a 57 per cent jump in consolidated net profit to Rs 2,021 crore for the March 2024 quarter on lower loan provisions and core income.
The company had registered a consolidated net profit of Rs 1,288 crore during the corresponding quarter of last year.
For the fiscal 2023-24, its profit after tax grew 22.9 per cent to Rs 7,399 crore. The consolidated net interest income for the fourth quarter increased 22 per cent to Rs 5,543 crore against Rs 4,534 crore in the year-ago period.
The loan loss provisions grew by only 6.72 per cent to Rs 1,265 crore, aiding the profit growth. Its total assets under management as of March increased 21 per cent to Rs 2,24,862 crore from Rs 1,85,682.86 crore at the end of the previous fiscal. Its executive vice chairman Umesh Revankar said it will be targeting a 15 per cent growth in AUM in FY25 on the back of higher demand for passenger vehicles and small business loans, and expects the first quarter to be slow because of the elections.
The net interest margin came at 9.02 per cent for the quarter, and the company is expecting to widen it by 0.05 per cent by the end of the fiscal, he said, pointing out that rate cuts expected in the second half of FY25 will help on this.
The gross non-performing assets ratio stood at 5.45 per cent as of March 31, 2024, and Revankar said that the company will be aiming to reduce the same to under 5 per cent over the next 12 months. The overall capital adequacy stands at a comfortable level of over 21 per cent right now, but it will take a call on a capital raising in a few months, wherein it may have to do fundraising towards the end of the fiscal as well.
The company recommended a final dividend of Rs 15 per equity share of the face value of Rs 10 each fully paid-up (150 per cent) for the financial year ended March 31, 2024, subject to the approval of shareholders at the ensuing AGM. This is in addition to the two interim dividends during 2023-24 declared by the company of Rs 20 on October 26, 2023, and the second of Rs 10 on January 25, 2024, it said.
With this, the total dividend will be Rs 45 per share (450 per cent), it added.