Q3 2025 Shriram Finance Ltd Earnings Call Transcript
Key Points
- Shriram Finance Ltd (BOM:511218) reported a strong disbursement growth of 15.82% year on year, with disbursements reaching INR43,766 crores in Q3 FY25.
- The company's Assets Under Management (AUM) grew by 18.78% over the previous year, reaching INR2,54,469.69 crores.
- Net interest income increased by 14.31% year on year, amounting to INR5,822.69 crores in Q3 FY25.
- The company declared an interim dividend of 1.5%, reflecting confidence in its financial performance.
- Shriram Finance Ltd (BOM:511218) maintained a strong liquidity position, with a leverage ratio of 4.06 and a liquidity coverage ratio (LCR) of 265%.
- Net Interest Margin (NIM) decreased to 8.48% from 8.99% in the previous year, indicating pressure on interest spreads.
- The cost-to-income ratio increased to 28.59% in Q3 FY25 from 27.04% in Q3 FY24, suggesting rising operational expenses.
- Stage three assets in the commercial vehicle segment saw a significant increase, raising concerns about asset quality.
- The MSME portfolio experienced high forward flows into stage two and three assets, indicating potential stress in this segment.
- The company's operational expenses increased due to the addition of 1,614 employees, impacting overall profitability.
Ladies and gentlemen, good day and welcome to the Shriram Finance Limited Q3 FY25 earnings conference call. (Operator Instructions)
I now hand the conference over to Mr. Umesh G. Revankar, Executive Vice Chairman, Shriram Finance Limited. Thank you and over to you, sir.
Yeah. Thank you. Good evening, friends from India and Asia and a warm welcome to all of you. Greetings also to those who joined from the Western part of the world.
To present our Q3 FY25 earnings call today, I have with me our Managing Director and CEO, Mr. Y S Chakravarti; Managing Director and CFO, Mr. Parag Sharma; Mr. Sunder, Joint Managing Director; and Mr. Sanjay, our Investor Relations Head.
It has been a good third quarter of the year for Shriram Finance under current circumstances. Let us look at the broad economic indicators that have direct or indirect impact on our business. The Indian GDP expanded a little slowly to 5.4% from previous year in the in the quarter of September '24
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