Q2 2025 Shriram Finance Ltd Earnings Call Transcript
Key Points
- Shriram Finance Ltd (BOM:511218) reported a strong disbursement growth of 15.5% year-on-year, reaching INR39,974.09 crores in Q2 FY25.
- The company's Assets Under Management (AUM) grew by 19.94% over Q2 FY24, indicating robust portfolio expansion.
- Net interest income increased by 16.37% year-on-year, reflecting effective interest management and lending growth.
- Profit after tax rose by 18.3% compared to Q2 FY24, showcasing improved profitability.
- The company declared a significant dividend of 220%, or INR 22 per share, for the first half of the year, rewarding shareholders.
- The net interest margin slightly decreased to 8.74% from 8.93% in Q2 FY24, indicating pressure on interest spreads.
- Operating expenses increased by 8% quarter-on-quarter, partly due to higher fees and branding costs, impacting cost efficiency.
- The cost-income ratio rose to 27.95% in Q2 FY25 from 27.34% in Q2 FY24, suggesting increased operational costs.
- The company's gross stage three loans, although improved, remain a concern at 5.32%, indicating ongoing asset quality challenges.
- The gold loan portfolio growth slowed due to reduced loan-to-value ratios, affecting overall disbursement volumes.
Ladies and gentlemen, good day. And welcome to the Shriram Finance Limited Q2 FY25 earnings conference call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Umesh Revankar, Executive Vice Chairman. Thank you and over to you, sir.
Good evening friends from India and Asia. A warm welcome to all of you. Greetings, aso to those who have joined the call from western part of the world. To present our Q2 FY 25 earning call today I have with me, our managing director and CEO Mr. Y S Chakravarti, Managing director and CFO Mr. Parag Sharma, S Sunder, the joint managing director, and Sanjay Kumar Mundra, our investor relationship head.
It has been a good
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