Shriram Finance (SHRIRAMFIN) Q4 14/15 earnings summary

Executive summary

• FY15 standalone AUM rose 11.28% to ₹59,108.28 crore; net interest income increased 12.1% to ₹4,112.94 crore, while PAT fell to ₹1,237.81 crore on higher provisions and write-offs.

• Network expanded by 87 branches and 147 rural centres, reaching 741 branches and 776 rural centres; used-vehicle demand remained robust.

Financial highlights

• Standalone total income was ₹8,644.72 crore, up from ₹7,888.26 crore; PAT was ₹1,237.81 crore versus ₹1,264.21 crore in FY14.

• Standalone PBT was ₹1,842.39 crore versus ₹1,828.04 crore; EPS was ₹54.56 versus ₹55.72.

• Consolidated revenue was ₹9,179.62 crore versus ₹8,480.19 crore; PAT declined to ₹1,028.44 crore from ₹1,357.94 crore, and EPS to ₹45.33 from ₹59.85.

• Standalone finance costs rose to ₹4,389.98 crore from ₹3,932.52 crore; provisions and write-offs increased to ₹1,289.15 crore from ₹1,148.80 crore.

Outlook and guidance

• FY16 performance was expected to improve; GDP growth was projected at 8%, with average inflation forecast at 5.8% versus 6% in FY15.

• Lower crude prices, a normal monsoon, prospective repo-rate cuts and signs of recovery in industrial production and CV sales were cited as supportive factors.

• Risks to the outlook included crop damage from unseasonal rains and potential near-term inflation pressure.