Shriram Finance Q4 Results: Net profit jumps 20% YoY to Rs 1308 crore

Non-bank lender Shriram Finance on Thursday reported a 20% rise in March quarter net profit at Rs 1308 crore as against Rs 1086 crore in the year ago period, backed by over 50% jump in interest income.

Shriram Finance was formed following the merger of Shriram City Union Finance and Shriram Capital into Shriram Transport Finance. The rise in earnings reflect the effect of the merger of transferor companies into Shriram Transport Finance.

The company's net interest income stood at Rs 4446 crore against Rs 2628 crore while total income was at Rs 7769 crore against Rs 5088 crore over the same period. Interest income for the quarter was at Rs 7423 crore against Rs 4928 crore in the year ago period.

The net interest margin was at 8.6% for the quarter. Managing director YS Chakravarti expects NIM to remain around this level.

"We are looking at around 15% AUM growth for the fiscal," he said.

The company's AUM grew 16% year-on-year to Rs 1.86 lakh crore at the end of March.

The board of the company recommended a 200% final dividend -- ie Rs 20 per share of face value of Rs 10 -- for FY23. This is in addition to the interim dividend of Rs 15 per equity share paid in January.

Its gross non-performing assets ratio was at 6.21% at the end of March as compared with 7.07% a year back. Net NPA was at 3.19% against 3.67%.

On a consolidated basis, its net profit was at Rs 1288 crore against Rs 1091 crore, which is a little lower than the standalone net profit.

This is due to impairment of valuation for Shriram Housing Finance, Chakravarti said.