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Shriram Finance Q4 net profit up 6%, board clears foray into payments biz

Shriram Finance, one of the largest non-banking financial companies in India, on Friday reported a 6 per cent increase in its consolidated net profit to ₹2,143.77 crore in the fourth quarter of the financial year 2024-25 (FY25), compared to ₹2,021.28 crore in the year-ago period. The quarter saw a one-time exceptional gain of ₹1,553.66 crore on account of disinvestment of Shriram Housing Finance. During the period under review, the company's total income also zoomed 21 per cent to ₹11,460.25 crore as against ₹9,497.85 crore during Q4FY24. Shriram Finance also said that the board has approved the plan to foray into the payments business by offering mobile wallets and prepaid cards, as part of its diversification. 'Approved the proposal to offer payment services through mobile wallets, prepaid cards (Food Card, Gift Card), and FASTag, providing a secure, convenient, and efficient alternative to cash transactions for our customers,' the company said. This will be subject to receipt of necessary approval from the Reserve Bank of India and receipt of authorisation as a Payment System Operator. Through this, the company will be competing with One97 Communications' Paytm, Walmart's PhonePe, and the biggest non-bank lender, Bajaj Finance. 'We are not competing with anyone. This is like part of our existing business only to cater to the needs of around 10 million existing customers. Our super app already has 14 million downloads,' said the company's Executive Vice-Chairman Umesh Revankar. The flagship company of the diversified conglomerate Shriram Group is set to cross ₹3 trillion in assets during the current financial year with loan growth of 15 per cent, Revankar said. The company's board also recommended a final dividend of ₹3 per share for the financial year 2024-25, subject to approval of members at the ensuing 46th AGM. Total Assets Under Management as on March 2025 increased by 17.05 per cent and stood at ₹2.63 trillion as compared to ₹2.25 trillion as on March 2024 and ₹2.54 trillion as on December 2024. 'This fiscal, I am looking at 15 per cent growth. The rural market is good. Urban demand, led by infrastructure spend that had slowed down last year, may revive this year,' he added. The Board of Directors of the company, in its meeting held on May 13, 2024, had approved the disinvestment of the company's entire stake in SHFL for ₹3,929.03 crore. The Net Interest Income for the year ended March 2025 increased by 15.99 per cent and stood at ₹22,835.09 crore as against ₹19,686.85 crore for the year ended March 2024. For FY25, the company's net profit was seen at ₹9,576.32 crore, up 29 per cent from ₹7,398.89 crore previous year.