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Business Standard
25-04-2025
- Business
- Business Standard
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.
Time of India
25-04-2025
- Business
- Time of India
Shriram Finance Q4 Results: Standalone profit rises 10% YoY to Rs 2,139 crore; Co declares Rs 3 dividend
Shriram Finance on Friday reported a 10% year-on-year (YoY) growth in standalone net profit to Rs 2,139 crore for the fourth quarter ended March 2025, aided by strong disbursements and healthy net interest income. The net interest income for the fourth quarter increased 13% to Rs 6,051 crore as against Rs 5,336 crore in the same period of the previous year. Total income in Q4 stood at Rs 11,460 crore, up from Rs 9,498 crore a year earlier. Revenue from operations rose 21% YoY to Rs 11,454 crore. Fee and commission income of Rs 331 crore more than doubled from the year-ago period. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. For the full year FY25, net profit surged 36% YoY to Rs 9,761 crore, compared with Rs 7,190 crore in FY24. Total income in the same period rose to Rs 41,859 crore, up from Rs 34,998 crore last year. Despite rising costs, profit before tax rose to Rs 12,606 crore, partly boosted by a one-time gain of Rs 1,657 crore from the sale of its stake in subsidiary Shriram Housing Finance (now Truhome Finance). Live Events The board declared a final dividend of Rs 3 per share, taking the total pay out for FY25 to Rs 9.9 per share, adjusted for stock split. "Our strong performance this year reflects the strength of our lending model and disciplined risk management. We are focused on digital expansion and improving customer experience while maintaining our leadership in rural and semi-urban lending," said Arul Chakravarthi, MD & CEO, Shriram Finance The company's loan book expanded to Rs 2.45 lakh crore, up from Rs 2.08 lakh crore in FY24. Asset quality remained stable, with the gross NPA ratio at 4.55% and net NPA at 2.64%. The capital adequacy ratio stood at 20.66%, well above regulatory requirements. The company said it plans to raise funds via NCDs, foreign borrowings, and other instruments in FY26, subject to shareholder approval.
