Shriram Finance (SHRIRAMFIN) Q4 17/18 earnings summary

Executive summary

• Standalone AUM reached Rs 95,306 crore; total income was Rs 12,417 crore and PAT was Rs 1,568 crore for FY 2017-18.

• Focus remained on pre-owned commercial vehicle finance, supported by a relationship-led model and expansion across branches and rural centres.

• Earnings included an exceptional gain from selling a controlling stake in Shriram Automall India Limited; revised RBI NPA recognition norms also materially increased provisions.

Financial highlights

• Standalone total income was Rs 12,416.58 crore vs Rs 10,830.61 crore in FY 2016-17; net interest income was Rs 6,734.54 crore vs Rs 5,521.18 crore.

• Standalone PAT was Rs 1,568.02 crore vs Rs 1,257.34 crore; EPS was Rs 69.11 vs Rs 55.42.

• Standalone PBT was Rs 2,371.83 crore vs Rs 1,923.93 crore; total expenditure was Rs 10,044.75 crore vs Rs 8,906.69 crore.

• Consolidated PAT after associate profit was Rs 1,556.75 crore vs Rs 1,265.63 crore; consolidated EPS was Rs 68.61 vs Rs 55.78.

• Securitisation during FY 2017-18 totalled Rs 12,467.10 crore vs Rs 11,214.20 crore in FY 2016-17.

Outlook and guidance

• Normal monsoon forecasts, rural and urban vehicle demand, and projected double-digit CV sales growth were expected to support financing demand in FY 2018-19.

• Economic recovery and fading GST implementation and demonetisation effects were expected to aid activity; rising crude prices, rates and financial-market volatility could weigh on growth.