SHRIRAMFINNSEShriram Finance LimitedMediumNeutral
Announced Tue, 29 Apr · 14:16 IST

Shriram Finance Limited has informed the Exchange about Transcript of investors earnings call for the fourth quarter ended March 31, 2025.

Mgmt Guided Margin ImprovementInvestor Communications View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Shriram Finance reported Q4 FY25 AUM growth of 17% YoY to Rs. 2.63 lakh crore, with disbursements up 14% to Rs. 44,848 crore. Net interest income rose 13.4% to Rs. 6,051 crore, but NIM compressed to 8.25% from 9.02% YoY, mainly due to excess liquidity of Rs. 31,000 crore on the balance sheet. PAT grew nearly 10% to Rs. 2,139 crore and EPS stood at Rs. 11.38. Gross Stage-3 assets improved to 4.55% from 5.45% YoY, helped by a Rs. 2,345 crore technical write-off of fully provided assets. The board recommended a final dividend of Rs. 3 per share, taking FY25 total dividend to Rs. 9.9 per share. Management guided FY26 AUM growth around 15%, with CV at 12-15%, MSME at 18-20%, and passenger vehicles at 20%. NIM is expected to recover to 8.45-8.6% as excess liquidity normalizes over the next two quarters and RBI rate cuts transmit.

Likely market impact

The earnings call signals a margin recovery story as excess liquidity drag reverses, with management also confirming healthy growth and contained credit costs around 2%. The technical write-off cleans up the balance sheet and supports the asset quality narrative, which should be viewed positively by shareholders.