Shriram Finance (SHRIRAMFIN) Q4 21/22 earnings summary

Executive summary

• FY22 standalone total income rose 10.54% YoY to ₹19,274.23 crore; PAT increased 8.87% to ₹2,707.93 crore and EPS was ₹101.74.

• AUM reached ₹127,040.86 crore, up 8.36%; disbursements rose to ₹60,073.44 crore from ₹35,027.51 crore.

• Results reflect improved collections, lower financing costs and operating expenses, alongside elevated impairment charges and continued COVID-related uncertainty.

Financial highlights

• Revenue from operations was ₹19,255.17 crore vs ₹17,420.45 crore; net interest income was ₹9,316.06 crore, up 14.07% YoY.

• PBT reached ₹3,549.25 crore vs ₹3,278.01 crore; PAT was ₹2,707.93 crore vs ₹2,487.26 crore.

• Finance costs increased 7.51% to ₹9,734.31 crore; impairment on financial instruments rose to ₹3,860.86 crore from ₹3,118.40 crore.

• Net gain on fair-value changes increased to ₹221.70 crore from ₹21.80 crore; gain on derecognition of amortised-cost instruments was ₹217.74 crore vs ₹58.85 crore.

• Consolidated PAT was ₹2,721.10 crore vs ₹2,498.83 crore; consolidated EPS was ₹102.23 vs ₹101.44.

Outlook and guidance

• Medium-term priorities include digital customer service and collections, analytics-led lending and recovery, leadership in vehicle finance, stronger portfolio quality and customer retention.

• RBI forecasters projected FY23 GDP growth of 7.5% and inflation of 5.5%; normal, evenly distributed monsoon rainfall was expected.

• Liquidity buffers were described as sufficient to meet liabilities over the next six months; planned merger could consolidate vehicle, gold, personal and small-enterprise lending under one roof.