Shriram Finance (SHRIRAMFIN) Q4 20/21 earnings summary

Executive summary

• FY21 total income rose 5.19% YoY to Rs. 17,436.40 crore; PAT eased 0.58% to Rs. 2,487.26 crore amid elevated COVID-related credit provisioning. AUM grew 6.83% to Rs. 117,242.82 crore.

• Collections recovered after lockdown: efficiency reached ~95% in Sep 2020 and exceeded 100% in Dec 2020; restructuring remained below the initial 2.5% estimate.

Financial highlights

• Total income Rs. 17,436.40 crore, up 5.19% YoY; operating income Rs. 17,420.45 crore, up 5.22%.

• Net interest income rose 0.74% to Rs. 8,167.10 crore; interest income increased 5.29% to Rs. 17,128.14 crore, while finance costs rose 9.48% to Rs. 9,054.26 crore.

• PBT was Rs. 3,278.01 crore, down from Rs. 3,438.67 crore; PAT was Rs. 2,487.26 crore versus Rs. 2,501.84 crore. Basic EPS was Rs. 100.97 versus Rs. 107.44.

• Impairment expense on financial instruments was Rs. 3,118.40 crore versus Rs. 2,794.88 crore; this included Rs. 1,681.84 crore of additional COVID-related ECL provision during FY21.

Outlook and guidance

• Strategy for the next 3–5 years: deepen digital servicing and analytics, strengthen vehicle-finance leadership and portfolio quality, and maintain customer loyalty and liquidity readiness.

• Focus remains on pre-owned commercial and passenger vehicles and rural and urban reach; future recovery depends on second-wave severity, vaccination rollout, and the effectiveness of policy support.