{"id":7622,"date":"2025-04-25T16:43:58","date_gmt":"2025-04-25T11:13:58","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=7622"},"modified":"2025-04-25T16:43:58","modified_gmt":"2025-04-25T11:13:58","slug":"shriram-finance-q4-profit-up-10-declares-final-dividend","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/shriram-finance-q4-profit-up-10-declares-final-dividend\/","title":{"rendered":"Shriram Finance Q4 Profit Up 10%, Declares Final Dividend"},"content":{"rendered":"
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Q4 FY25 Financial Performance Overview<\/strong><\/h2>\n

Shriram Finance Limited, one of India\u2019s prominent non-banking financial companies (NBFCs), has delivered a robust financial performance for the fourth quarter of FY25. The company reported a 10% year-on-year growth in its standalone net profit, which reached Rs 2,139.39 crore. This marks an increase from Rs 1,945.87 crore recorded during the same period last year. The strong growth highlights Shriram Finance\u2019s ability to navigate a challenging financial landscape and deliver solid returns to its stakeholders.<\/p>\n

Highlights<\/strong>:<\/p>\n

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    Q4 FY25 net profit: Rs 2,139.39 crore, up 10% from Q4 FY24<\/p>\n<\/li>\n

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    Reflects strong operational execution despite market challenges<\/p>\n<\/li>\n<\/ul>\n

    Revenue Growth Driven by Interest Income<\/strong><\/h2>\n

    For the fourth quarter, Shriram Finance\u2019s total income surged to Rs 11,460.25 crore, up from Rs 9,497.85 crore in Q4 FY24. The growth in total income was driven by substantial revenue from operations, which reached Rs 11,454.23 crore. A significant contributor to this income was the company\u2019s interest income, which amounted to Rs 10,789.51 crore. This reflects the strong demand for Shriram Finance\u2019s loan products and its effective asset management strategies. Additionally, the company reported fee and commission income of Rs 330.62 crore, and net gains on fair value changes stood at Rs 111.27 crore, further bolstering its financial performance.<\/p>\n

    Highlights<\/strong>:<\/p>\n

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      Q4 total income: Rs 11,460.25 crore, up 20% from Q4 FY24<\/p>\n<\/li>\n

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      Interest income: Rs 10,789.51 crore, a primary driver of growth<\/p>\n<\/li>\n<\/ul>\n

      Expense Management and Profit Margins<\/strong><\/h3>\n

      Shriram Finance effectively managed its expenses during Q4 FY25, with total expenses for the quarter amounting to Rs 8,688.27 crore. This figure covers the company\u2019s operational and financial costs, and despite the increase in revenue, the firm managed to maintain a healthy profit margin. The profit before tax (PBT) for Q4 stood at Rs 2,771.98 crore, reflecting efficient cost control and revenue maximization.<\/p>\n

      Highlights<\/strong>:<\/p>\n

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        Q4 expenses: Rs 8,688.27 crore, showcasing effective cost control<\/p>\n<\/li>\n

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        Profit before tax (PBT): Rs 2,771.98 crore for the quarter<\/p>\n<\/li>\n<\/ul>\n

        Taxation and Net Profit After Tax<\/strong><\/h3>\n

        Following tax outgo of Rs 498.00 crore in current tax and Rs 134.59 crore in deferred tax, Shriram Finance\u2019s net profit after tax (PAT) for the quarter was Rs 2,139.39 crore. This is an increase from the PAT of Rs 1,945.87 crore recorded in the same quarter the previous year. The company\u2019s earnings per share (EPS) for Q4 were reported at Rs 11.38 basic and Rs 11.36 diluted, reinforcing its strong profitability for the period.<\/p>\n

        Highlights<\/strong>:<\/p>\n

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          Q4 PAT: Rs 2,139.39 crore, up 10% from Q4 FY24<\/p>\n<\/li>\n

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          EPS for Q4: Rs 11.38 basic and Rs 11.36 diluted<\/p>\n<\/li>\n<\/ul>\n

          Full-Year Financial Performance<\/strong><\/h3>\n

          For the full fiscal year, Shriram Finance posted a total income of Rs 41,859.47 crore, marking a significant increase from Rs 34,997.61 crore in FY24. The company\u2019s full-year net profit surged to Rs 9,761.00 crore, up from Rs 7,190.48 crore in the previous year. A notable contributor to this growth was the gain of Rs 1,656.77 crore from the disinvestment of Shriram Housing Finance Limited. Excluding this one-time gain, the profit before tax for the year was Rs 10,949.25 crore, underscoring the company\u2019s strong operating performance across the year.<\/p>\n

          Highlights<\/strong>:<\/p>\n

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            Full-year total income: Rs 41,859.47 crore, up 20% YoY<\/p>\n<\/li>\n

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            Full-year net profit: Rs 9,761.00 crore, a 36% YoY increase<\/p>\n<\/li>\n<\/ul>\n

            Asset Management and Financial Ratios<\/strong><\/h3>\n

            Shriram Finance\u2019s assets under management (AUM) grew significantly, reaching Rs 2,93,532.91 crore as of March 31, 2025, compared to Rs 2,37,276.38 crore a year earlier. This growth in AUM demonstrates the company\u2019s ability to expand its business and attract more clients. The company\u2019s total equity stood at Rs 56,280.57 crore, and the debt-equity ratio was reported at 4.16 times, which indicates a manageable level of leverage. Additionally, Shriram Finance maintained a strong capital adequacy ratio of 20.66%, providing a solid cushion to absorb potential financial stress.<\/p>\n

            Highlights<\/strong>:<\/p>\n

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              AUM as of March 31, 2025: Rs 2,93,532.91 crore, up 24% from FY24<\/p>\n<\/li>\n

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              Capital adequacy ratio: 20.66%, indicating strong financial stability<\/p>\n<\/li>\n<\/ul>\n

              Non-Performing Assets (NPA) and Risk Management<\/strong><\/h3>\n

              The company\u2019s non-performing assets (NPAs) remained under control, with the gross NPA ratio reported at 4.55% and the net NPA ratio at 2.64%. These figures are within industry standards, indicating that Shriram Finance has effectively managed its asset quality. The firm\u2019s risk management strategies, including prudent lending practices and robust collections, continue to help minimize defaults and maintain the integrity of its loan book.<\/p>\n

              Highlights<\/strong>:<\/p>\n

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                Gross NPA ratio: 4.55%, Net NPA ratio: 2.64%<\/p>\n<\/li>\n

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                Effective risk management and asset quality control<\/p>\n<\/li>\n<\/ul>\n

                Dividend Announcement and Shareholder Returns<\/strong><\/h3>\n

                The Board of Directors at Shriram Finance has recommended a final dividend of Rs 3 per share, with a face value of Rs 2 each. This decision reflects the company\u2019s strong financial performance and its commitment to rewarding shareholders. The dividend is expected to provide further value to investors who have supported the company\u2019s growth. However, despite the strong financial results, Shriram Finance\u2019s stock saw a decline of over 8% on the day the results were announced, closing the session at Rs 640 per share. Nonetheless, the stock has appreciated by nearly 10% year-to-date in 2025, reflecting broader investor confidence in the company\u2019s long-term prospects.<\/p>\n

                Highlights<\/strong>:<\/p>\n

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                  Recommended final dividend: Rs 3 per share<\/p>\n<\/li>\n

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                  Share price reaction: Over 8% drop despite strong results<\/p>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

                  <\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

                  Q4 FY25 Financial Performance Overview Shriram Finance Limited, one of India\u2019s prominent non-banking financial companies (NBFCs), has delivered a robust financial performance for the fourth quarter of FY25. The company reported a 10% year-on-year growth in its standalone net profit, which reached Rs 2,139.39 crore. This marks an increase from Rs 1,945.87 crore recorded during […]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-7622","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/7622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=7622"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/7622\/revisions"}],"predecessor-version":[{"id":7624,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/7622\/revisions\/7624"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/7623"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=7622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=7622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=7622"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=7622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}