Shriram Finance consolidated net rises 18% to Rs 1,288 crore in Q4

Shriram Finance Ltd, the largest retail NBFC in India, has posted an 18 per cent rise in consolidated net profit to Rs 1,288.18 crore during the fourth quarter of 2022-23, as compared to Rs 1091.23 crore during the same time during the previous financial year, mainly owing to improved growth in net interest income.

The company’s net interest income for the fourth quarter ended March 31 this year stood at Rs 4,533.63 crore as against Rs 2,627.82 crore in the same period last year. Its stock closed marginally down by 0.13 per cent at Rs 1,404.8 per share on the BSE.

Its net interest margin (NIM) on the assets under management (AUM) stood at 8.55 per cent during the fourth quarter of the year under review as against 6.96 per cent during the Q4 of 2021-22. In its presentation, the company indicated that during the fourth quarter of 2021-22, the figures include the effect of the merger of transferor companies Shriram City Union Finance and are therefore not comparable.

The non-banking finance company’s total assets under management stood at Rs 1.86 trillion by the end of March 31, compared to Rs 1.6 trillion during the same period last financial year.  During the fourth quarter, its gross non-performing assets (NPAs) dipped to 6.21 per cent from 7.07 per cent a year ago. Its net NPA also declined to 3.19 per cent from 3.67 per cent at the end of March 2022. Shriram Finance’s capital adequacy stood at 22.61 per cent during the quarter as against 22.97 per cent in Q4 2021-22.

Interestingly, for the financial year 2022-23, the company’s consolidated net profit saw a 121 per cent increase to Rs 6,020.03 crore from Rs 2,721.1 crore in 2021-22. Similarly, its net interest income also saw an 85 per cent increase from Rs 9,316.06 crore in 2021-22 to Rs 17,272.45 crore in 2022-23.