Shriram Finance (SHRIRAMFIN) Q4 19/20 earnings summary

Executive summary

• FY20 total income rose to ₹16,582.63 crore from ₹15,556.66 crore; PAT declined to ₹2,501.84 crore from ₹2,563.99 crore, reflecting higher impairment and COVID-19 provisioning.

• AUM reached ₹109,749.24 crore versus ₹104,482.29 crore; the pre-owned commercial vehicle finance franchise expanded its network by 213 offices to 1,758 branches and offices.

Financial highlights

• Standalone total income was ₹16,582.63 crore versus ₹15,556.66 crore; net interest income was ₹7,916.77 crore versus ₹7,762.04 crore.

• PBT fell to ₹3,438.67 crore from ₹3,778.27 crore; PAT was ₹2,501.84 crore versus ₹2,563.99 crore.

• Interest income rose to ₹16,267.46 crore from ₹15,335.69 crore; finance costs increased to ₹8,270.26 crore from ₹7,511.26 crore.

• Impairment expense increased to ₹2,794.88 crore from ₹2,382.26 crore; the FY20 charge included an additional ₹909.64 crore COVID-19 ECL provision.

• Basic EPS was ₹110.27 versus ₹113.01; total comprehensive income was ₹2,497.10 crore versus ₹2,561.67 crore.

Outlook and guidance

• FY21 GDP growth was expected to remain negative; revival in H2 FY21 depended on pandemic containment, phased reopening and the effectiveness of policy measures.

• Priorities include financing pre-owned commercial and passenger vehicles, deeper rural and urban reach, stronger loan quality, digital collections and data analytics.

• The board approved plans for up to ₹4,000 crore of fundraising: rights issue up to ₹1,500 crore and up to ₹2,500 crore through other eligible securities and permitted routes.