Shriram Finance (SHRIRAMFIN) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 delivered strong performance with net interest income up 20.63% year-over-year, PAT up 18.21%, and AUM up 20.82% over Q1 FY2024.

• EPS increased 17.82% to INR 52.70; consolidated PAT for Q1 FY25 was INR 2,030.64 crore.

• Asset quality improved, with gross Stage III at 5.39% and net Stage III at 2.71%, both better than the previous year.

• Board approved divestment of entire stake in Shriram Housing Finance to Warburg Pincus for INR 4,630 crore, expected to close by Q3 FY25 and boost CRAR by 80 bps.

• Shriram Housing Finance AUM grew 50.93% year-over-year, with NII up 40.62% and PAT up 5.87%.

Financial highlights

• Disbursements in Q1 FY2025 were INR 37,709.79 crore, up from INR 30,454.81 crore in Q1 FY2024.

• Total income for Q1 FY25 reached INR 9,609.71 crore, up 20% year-over-year.

• Net interest income was INR 5,354.47 crore, up from INR 4,438.68 crore year-over-year.

• PAT for Q1 FY2025 was INR 1,980.59 crore; consolidated PAT at INR 2,030.64 crore.

• Book value per share rose 12.22% to INR 1,344.99.

Outlook and guidance

• AUM growth guidance for FY2025 remains at 15%, with management expecting to potentially exceed this due to strong momentum.

• Disinvestment in Shriram Housing Finance expected to increase CRAR by 80 bps; regulatory approval expected by Q3 FY25.

• Focus remains on bottom-line growth and improving product mix, especially in new geographies and smaller ticket loans.