Shriram Finance Q3 PAT surges 96% YoY to Rs 3,570 cr on one-time gain

The NBFC's standalone net profit jumped 96.32% to Rs 3,569.76 crore on a 19.92% increase in total income to Rs 10,705.47 crore in Q3 FY25 over Q3 FY24.

The profit after tax (PAT) for Q3 FY25 includes a one-time gain of Rs 1,489.39 crore for the sale of a stake in a subsidiary, Shriram Housing Finance (SHFL) (now renamed as Truhome Finance). Excluding this, PAT has increased by 14.41% and stands at Rs 2,080.37 crore as against Rs 1,818.33 crore in the same period of the previous year.

Profit before exceptional items and tax in Q3 FY25 was at Rs 2,759.15 crore, up 13.1% from Rs 2,439.62 crore recorded in Q3 FY24. Exceptional profit before tax stood at Rs 1,656.77 crore in Q3 FY25 due to stake sale in SHFL.

Net interest income grew 14.31% to Rs 5,822.69 crore in the third quarter of FY25 as against Rs 5,093.93 crore recorded in the same period a year ago.

As on 31 December 2024, total assets under management climbed 18.78% to Rs 2,54,469.69 crore as compared to Rs 2,14,233.47 crore as on 31 December 2023.

The liquidity coverage ratio was at 265.24% as of 31 December 2024, as against 256.25% as of 31 December 2023. Cost-to-income ratio improved to 28.59% in Q3 FY25 from 27.04% reported in Q3 FY24.

The firm's return on assets (ROA) (including exceptional items) and return on equity (ROE) (including exceptional items) stood at 4.94% and 26.44%, respectively, in the quarter ended 31 December 2024.

Operating profit improved by 10.72% to Rs 40,849.80 crore in Q3 FY25 from Rs 36,893.20 crore in Q3 FY24.

On a nine-month basis, the company's net profit jumped 45.32% to Rs 7,621.61 on a 19.21% increase in total income to Rs 30,399.22 crore in 9M FY25 over 9M FY24.

Meanwhile, the companys board declared an interim dividend of Rs 2.50 per share for financial year 2024-25; the record date for the entitlement thereof has been fixed as 31 January 2025. The dividend payout will be made to eligible shareholders by 22 February 2025.

Shriram Finance is India's largest retail asset financing non-banking finance company (NBFC). It is the flagship company of the Shriram Group, which has a significant presence in consumer finance, life insurance, general insurance, housing finance, stock broking, and distribution businesses.

Shares of Shriram Finance shed 0.53% to close at Rs 527.35 on the BSE.

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