Shriram Finance (SHRIRAMFIN) Q3 24/25 earnings summary

Executive summary

• Disbursement grew 15.82% year-over-year to INR 43,766 crores in Q3 FY25, with AUM up 18.78% to INR 2,54,470 crores.

• Net interest income rose 14.31% year-over-year to INR 5,823 crores, and total income increased 19.92% year-over-year.

• PAT surged 96.32% year-over-year to INR 3,570 crores, including a one-time gain from the SHFL stake sale.

• Excluding the one-time gain, PAT increased 14.41% year-over-year to INR 2,080 crores.

• Interim dividend of 125% (INR 2.5 per share) declared, with record date set for January 31, 2025.

Financial highlights

• NIM declined to 8.48% from 8.99% year-over-year, mainly due to negative carry from excess liquidity.

• Gross Stage 3 assets at 5.38% and Net Stage 3 at 2.68%, both slightly improved year-over-year.

• Cost-to-income ratio increased to 28.59% from 27.04% year-over-year.

• Net profit margin for the quarter at 25.62%, up from 20.38% year-over-year.

• EPS (incl. exceptional) for Q3 FY25: Rs. 18.99 (+96.18% YoY); book value per share: Rs. 292.47 (+16.73% YoY).

Outlook and guidance

• Liquidity expected to normalize over the next two quarters, with NIM likely to improve as excess liquidity is deployed.

• Cost-to-income ratio guided to moderate around 28% going forward, with cost growth expected to be slightly lower than asset growth.

• Management remains optimistic about leveraging digital platforms and pan-India network for future expansion.