Shriram Finance Q3 Results: Profit Rises 73.4% On One-Time Gain
Shriram Finance shares fell 3.90% after Q3 results, as net profit excluding the Rs 1,554 crore exceptional gain was lower than the previous year.
Shriram Finance Ltd. saw its net profit for the December quarter surge by 73.4% year-on-year on a one-time gain of Rs 1,554 crore due to the sale of Shriram Housing Finance.
The non-bank finance lender's net profit rose to Rs 3,249 crore in the quarter ended December, compared with a profit of Rs 1,874 crore a year ago.
Adjusting for the one-time gain, net profit for the quarter would have fallen 9.5% year-on-year.
Shriram Finance Q3 Earnings Highlights
Net Profit: Rs 3,249 crore versus Rs 1,874 crore, up 73.4%.
NII gained 13.8% to Rs 5,590 crore versus Rs 4,911 crore.
Gross Stage 3 asset ratio rose to 5.38% versus 5.32%, sequentially
Net Stage 3 ratio rose to 2.68% versus 2.64%, quarter-on-quarter.
Assets under management rose 18.8% year-on-year to Rs 2.54 lakh crore.
Stage 3 assets refer to accounts that have been in default for 90 days or more.
Shriram Finance saw its asset quality worsen in various segments, including commercial vehicles, commercial equipment, gold loans, and personal loans.
The gross stage 3 asset ratio in the commercial vehicle business rose 12 basis points quarter-on-quarter to 5.91%. Similarly, commercial equipment loans saw the gross stage 3 asset ratio rise 24 basis points to 6.58%. Loans to micro, small, and medium enterprises also saw asset quality worsen during the quarter.
Provisions against stage 3 assets rose 8% sequentially to Rs 3,162 crore.
Net interest margin for the company fell to 8.48% for the third quarter, down 26 basis points on a sequential basis.
Shares of Shriram Finance closed 1.13% lower on Friday at Rs 524.15 a share.
