Shriram Finance Q2 Results: Profit Increases 18.30%, Dividend declared of 220%

Mumbai : The Board Meeting of Shriram Finance Limited (SFL) (Formerly known as Shriram Transport Finance Company Limited (STFC)) was held today to consider the unaudited financial results for the second quarter ended 30th September, 2024.

Financials (Standalone) :

Second quarter ended 30th September, 2024 : The Net Interest Income for the second quarter ended 30th September, 2024 increased by 16.37% and stood at Rs. 5,606.74 crores as against Rs. 4,818.18 crores in the same period of the previous year. The profit after tax increased by 18.30% and stands at Rs. 2,071.26 crores as against Rs. 1,750.84 crores recorded in the same period of the previous year. The earning per share (basic) increased by 18.04% and stands at Rs. 55.09 as against Rs. 46.67 recorded in the same period of the previous year.

Interim Dividend :- The Board declared an Interim Dividend of (220%) Rs. 22/- per share, the Record Date for the entitlement thereof has been fixed as November 07, 2024.

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Assets under Management :
Total Assets under Management as on 30th September, 2024 increased by 19.94% and stood at Rs. 243,042.55 crores as compared to Rs. 202,640.96 crores as on 30th September, 2023 and Rs. 233,443.63 crores as on 30th June, 2024.

Financials (Consolidated) :

Second quarter ended 30th September, 2024 :
The Board of Directors of the Company in its meeting held on May 13, 2024 had approved the proposal for disinvestment of the Company’s entire stake in Shriram Housing Finance Limited, a debt-listed non-material subsidiary of the Company and in this regard, the Company has entered into the share purchase agreement, inter-alia, with Mango Crest Investment Ltd (an affiliate of Warburg Pincus).The Company's investment in Shriram Housing Finance Limited has been classified as Non-current Assets held for sale and disclosed as Discontinued Operations in the financial results.

Consolidated profit after tax increased by 20.17% and stands at Rs. 2,153.27 crores as against Rs. 1,791.83 crores recorded in the same period of the previous year. Consolidated EPS (basic) increased by 19.58% and stands at Rs. 56.93 as compared to Rs. 47.61 recorded in the same period of the previous year .

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About Shriram Finance Limited:

Shriram Finance Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Housing Finance, Stock Broking and Distribution businesses. Shriram Finance Limited is one of India’s largest retail asset financing Non-Banking Finance Companies (NBFC) with Assets under Management (AUM) above Rs. 2.43 trillion. Established in 1979, Shriram Finance is a holistic finance provider catering to the needs of Small Road Transport Operators and small business owners and is a leader in organised financing of pre-owned commercial vehicles and two wheelers. It has vertically integrated business model and offers financing number of products which include passenger commercial vehicles, loans to micro and small and medium enterprises (MSMEs), tractors & farm equipment, gold, personal loans and working capital loans etc. Over last 45 years, it has developed strong competencies in the areas of loan origination, valuation of pre-owned commercial vehicles and other assets, and collections. It has a pan India presence with network of 3,149 branches and an employee strength of 77,764 servicing to 90.26 lakhs of customers.

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