Shriram Finance marked a resilient performance in Q3 FY24, reporting a 29% year-on-year increase in disbursements. The company’s net profit for the quarter stood at ₹1,818 crore, reflecting a 2.33% YoY and 3.85% QoQ growth. However, the on-year profitability was impacted by the three-way merger of Shriram City Union Finance and Shriram Capital with Shriram Transport Finance in December 2022.
The Net Interest Income (NII) demonstrated robust growth, rising by 15.04% YoY and 5.72% QoQ to reach ₹5,094 crore. Other income exhibited a substantial 101.6% YoY increase, albeit a marginal 0.27% QoQ dip, settling at ₹823 crore.
Operating expenses witnessed a 27.4% YoY and 4.7% QoQ rise, totaling ₹14,869 crore, impacting the bottom line. Staff costs increased by 26.7% YoY, while other operating expenses saw a 28% YoY rise.
Despite these challenges, Shriram Finance’s assets under management experienced a commendable 20.7% YoY and 5.7% QoQ surge, reaching ₹2.1-lakh crore as of December 2023. The Commercial Vehicle (CV) portfolio also exhibited strong growth, rising by 13% YoY and 4% QoQ to ₹1-lakh crore.
Shriram Finance’s stock showed resilience, surging by 0.95% and trading at ₹2,329.05 as of the latest update. The overall financial results demonstrate the company’s steadfastness in navigating challenges and maintaining a robust financial position.
