- Shriram Finance's standalone net profit rose 59.8% to Rs 3,445 crore in Q1 year-on-year
- Net interest income increased 33.7% to Rs 8,056 crore with net interest margin at 9.04%
- Operating profit grew 45.2% year-on-year to Rs 6,085 crore in the June quarter
Shriram Finance Ltd. reported higher standalone profit and net interest income for the June quarter, while asset quality improved from a year earlier. The company's board also approved a resource mobilisation plan to raise funds through debt securities between August and October.
Standalone net profit rose 59.8% year on year to Rs 3,445 crore in the quarter ended June, compared with Rs 2,156 crore in the corresponding period last year. Profit increased 14.3% from Rs 3,014 crore in the preceding quarter.
Net interest income increased 33.7% to Rs 8,056 crore from Rs 6,026 crore a year earlier and rose 16.8% sequentially from Rs 6,899 crore. Net interest margin expanded to 9.04% from 8.11% a year earlier and 8.61% in the March quarter.
Operating profit rose 45.2% year on year to Rs 6,085 crore and increased 14.3% from the previous quarter.
Gross Stage 3 assets stood at 4.64% as of June 30, compared with 4.53% a year earlier and 4.58% in the preceding quarter. Net Stage 3 assets improved to 2.33% from 2.57% a year earlier and remained unchanged from the March quarter.
Shriram Finance Q1 Results Key Highlights (Standalone, YoY)
- Net interest income up 33.7% to Rs 8,056 crore versus Rs 6,026 crore.
- Net interest margin at 9.04% versus 8.11%.
- Operating profit up 45.2% to Rs 6,085 crore versus Rs 4,192 crore.
- Net profit up 59.8% to Rs 3,445 crore versus Rs 2,156 crore.
- Gross Stage 3 assets at 4.64% versus 4.53%.
- Net Stage 3 assets at 2.33% versus 2.57%.
Separately, the board approved a periodical resource mobilisation plan for issuing redeemable non-convertible debentures, subordinated debentures, bonds, notes and other borrowings in one or more tranches in the domestic and overseas markets between Aug. 1 and Oct. 31 to support the company's business requirements.
The company also said it utilised Rs 37,451 crore of the proceeds raised through its preferential allotment to MUFG during the quarter, while the unutilised Rs 2,167 crore was invested in liquid mutual funds.
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