Shriram Finance Ltd witnessed a notable surge of 7% in its stock price after company reported strong Q2 results.
As per CNBC, CLSA reaffirmed its ‘outperform’ rating, setting a target of Rs 2,050. Despite higher-than-anticipated credit costs, the company’s net slippages remained in line with expectations.
For the July-September quarter, Shriram Finance recorded a substantial 12.6% year-on-year increase in net profit, reaching Rs 1,750.84 crore. This marks a significant uptick from the previous year’s figure of Rs 1,555.11 crore.
In a sequential analysis, the net profit registered a commendable 4.5% growth compared to the preceding quarter. The company’s interest income for the reporting period saw a notable rise, climbing from Rs 7,094.69 crore to Rs 8,216.56 crore year-on-year.
On a standalone basis, the Net Interest Income (NII) for the second quarter ending September 30 exhibited a commendable surge of 17.38%. It stood at Rs 4,818.18 crore, surpassing the Rs 4,104.86 crore recorded in the same period of the previous year.
As of 9:22 AM, Shriram Finance’s shares were trading at a commendable 7.21% higher, reaching ₹1927.
