Shriram Finance Q1 FY25 results: Net profit rises 18.6% Rs 2,030 crore

Shriram Finance, the largest retail non-banking financial company in India, has posted a net profit of Rs 2,030.64 crore during the first quarter of the financial year 2024-25, up 18.6 per cent compared to Rs 1,712.19 crore during the same period in 2023-24.

Its net interest income grew by 21 per cent to Rs 5,554.87 crore during Q1 this fiscal, versus Rs 4,580 crore during the same period in 2023-24. "There was a marginal improvement for us in the liability cost. That has helped in improving our net profit. In addition to that, there was an improvement in credit cost and Stage III assets from 5.45 per cent during the last quarter to 5.39 per cent during the current quarter,” said Umesh Revankar, executive vice-chairman, Shriram Finance.

By the end of the first quarter, the NBFC’s total assets under management (AUM) also increased by 21 per cent to Rs 2,33,443.63 crore compared to Rs 1,93,214.67 crore during the same period in 2023-24. Consolidated EPS (basic) increased by 18.21 per cent and stands at Rs 53.82 compared to Rs 45.53 recorded in the same period of the previous year.

During the period under review, the liquidity coverage ratio was at 225.19 per cent as against 202.84 per cent by the end of June 2023. The cost-to-income ratio reduced to 27.45 per cent during the first quarter versus 28.85 per cent reported in Q1 FY24.

The gross non-performing asset (NPA) for the quarter reduced to 5.39 per cent, compared to 5.45 per cent in Q4 and 6.01 per cent during Q1 of FY24. On the other hand, net NPA stood at 2.71 per cent, up from 2.70 per cent in the January to March quarter and 2.96 per cent during the April to June period of FY24. The company has a pan-India presence with a network of 3,095 branches and an employee strength of 75,813 servicing 8.71 million customers.