Shriram Finance gains as board to mull over stock split, dividend on Oct 25

Shriram Finance has fixed the record date for payment of its interim dividend on Thursday, November 7, 2024

Shriram Finance shares gained 2.6 per cent on the BSE to register an intraday high of Rs 3,341.5 per share on Friday. The non banking financial company's (NBFC) stock rose as the company informed that its board is scheduled to mull over an interim dividend issue and stock split, along with the company's Q2 results in a meeting on October 25. 

At around 1:48 PM, Shriram Finance shares were up 2.39 per cent at Rs 3,332.7 per share on the BSE. In comparison, the BSE Sensex was up 0.44 per cent at 81,361.45 around the same time. The market capitalisation of the company around the same time stood at Rs 1,25,305.94 crore. 

"We hereby inform you that a meeting of the board of directors of the company will be held on Friday, October 25, 2024, to consider.. approval of unaudited standalone and consolidated financial results for the second quarter and half year ended September 30, 2024," the company's exchange filing read. 

It added that the board will also consider the declaration of interim dividend for the financial year 2024-25 and a proposal of alteration in the share capital of the company by sub-division of existing equity shares having face value of Rs 10 each.

Shriram Finance has set Thursday, November 7, 2024, as the record date for the purpose of payment of the said interim dividend, after the board's approval.

In Q1FY25, Shriram Finance posted a net profit of Rs 2,030.64 crore, up 18.6 per cent as compared to Rs 1,712.19 crore during the same period in 2023-24.

The company's net interest income grew by 21 per cent to Rs 5,554.87 crore during the first quarter of this fiscal, in comparison with 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.

The 52-week high of the company is at Rs 3,652.15 per share and 52-week low is at Rs 1,760.90 per share.

Shriram Finance is a part of the Shriram Group, one of India's largest financial services conglomerates. It primarily focuses on providing a range of financial products, including loans, insurance, and investment services. The company is well-known for its vehicle financing, personal loans and small business loans, catering especially to the underserved segments of the market.

In the past one year, Shriram Finance shares have surged 74.3 per cent, compared to the BSE Sensex's rise of 23 per cent during the same period.