At ₹2,139 crore, Shriram Finance’s Q4FY25 net up 10%

Net interest income was up 40 per cent y-o-y at ₹6,051 crore 
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Shriram Finance Ltd (SFL) has reported a 10 per cent increase in standalone net profit at ₹2,139 crore on the back of decent growth in net interest income and decline in stage-3 of the expected credit loss provision.

The non-banking finance company, which gives loans for buying commercial vehicles (CVs), passenger vehicles (PVs), and construction equipment (CEs) to MSMEs, among others, clocked a net profit of ₹1,946 crore in the year-ago quarter.

SFL’s Board recommended a final dividend of ₹3 per share of face value of ₹2 each fully paid-up (i.e. 150 per cent) for the financial year ended March 31, 2025.

This dividend is in addition to the two interim dividends for FY25 – the first interim dividend of 220 per cent – ₹22 per equity share ₹10 each (pre-split of face value of equity share) fully paid-up and second interim dividend of 125 per cent i.e. ₹2.50 per equity share of ₹2 each (post-split of face value of equity share) fully paid-up.

The NBFC’s Board also approved a proposal to offer payment services through mobile wallets, prepaid cards (food card, gift card), FASTag, etc. providing an alternative to cash transactions for its customers, subject to receipt of necessary approval from the Reserve Bank of India.

Net interest income (difference between interest earned and interest expended) was up 40 per cent y-o-y at ₹6,051 crore (₹5,336 crore).

Assets under management (AUM) rose 17 per cent y-o-y to ₹2,63,190 crore as at March-end 2025 from ₹2,24,862 crore as at March-end 2024.

Gross Stage-3 assets (loans with more than 90 days past due date are considered credit impaired) in percentage terms in Q4 FY25 stood at 4.55 per cent as against 5.38 per cent in Q3 FY25. The reduction in GNPA is primarily on account of technical write-off of ₹2,345 crore of assets which were fully provided for. Net Stage 3 in Q4 FY25 stood at 2.64 per cent as against 2.70 per cent in Q3 FY25.

Published on April 25, 2025