Shriram Finance (SHRIRAMFIN) Q4 15/16 earnings summary

Executive summary

• FY16 standalone total income was ₹10,245.26 crore; PAT ₹1,178.20 crore and EPS ₹51.93. Results include the amalgamated equipment-finance subsidiary from April 1, 2015, limiting YoY comparability.

• Consolidated PAT rose to ₹1,183.62 crore from ₹1,028.44 crore; consolidated EPS increased to ₹52.17 from ₹45.33.

• Revised RBI NPA classification and provisioning requirements increased provisions and weighed on standalone profitability; the auditors issued an unmodified opinion.

Financial highlights

• Standalone revenue from operations was ₹10,241.56 crore versus ₹8,636.95 crore; revenue growth was 18.58% YoY.

• Standalone PBT was ₹1,781.43 crore versus ₹1,842.39 crore; PAT was ₹1,178.20 crore versus ₹1,237.81 crore.

• Consolidated revenue from operations was ₹10,310.29 crore versus ₹9,176.998 crore; consolidated PBT reached ₹1,789.28 crore versus ₹1,649.56 crore.

• Standalone net interest income was ₹5,072.73 crore; AUM stood at ₹72,760.60 crore at FY-end.

• Provisions and write-offs rose to ₹2,058.58 crore from ₹1,289.15 crore standalone, primarily reflecting higher NPA and standard-asset provisioning.

Outlook and guidance

• FY17 India GDP growth was forecast at 7–7.75%; growth could reach 8–8.5% if monsoon rainfall matched the 106% long-period-average forecast.

• Infrastructure spending, road awards targeted at 25,000 km and rural development were expected to support CV, construction-equipment and vehicle-finance demand.

• Management planned approximately ₹44,000 crore of FY17 disbursements across commercial vehicles and other vehicle categories, with borrowing capacity proposed up to ₹75,000 crore.