Cash News
Financial services firm Shriram Finance Ltd on Friday (October 25) reported an 18.3% year-on-year (YoY) increase in net profit at ₹2,071.3 crore for the second quarter that ended September 30, 2024. In the corresponding quarter of the previous fiscal, Shriram Finance posted a net profit of ₹1,750.8 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹2,077 crore for the quarter under review.
Net interest income
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 16.4%, coming at ₹5,606.7 crore against ₹4,818.2 crore in the corresponding quarter of FY24.
Also Read: Bandhan Bank Q2 Results | Net profit jumps 30% to ₹937 crore, beats estimates
The CNBC-TV18 poll had predicted NII of ₹5,457.3 crore for the quarter under review. The company’s net interest margin (NIM) slightly decreased to 8.74% from 8.79% in the previous quarter.
Shriram Finance reported its gross stage-3 assets at ₹12,764.2 crore for Q2, up from ₹12,408 crore in the previous quarter. The expected credit loss (ECL) provision for stage-3 assets increased to ₹6,598.6 crore, compared to ₹6,346 crore quarter-over-quarter.
Total assets under management (AUM) as of September 30, 2024, increased by 19.94% and stood at ₹243,042.55 crore compared to ₹202,640.96 crore as of September 30, 2023, and ₹233,443.63 crore as of June 30, 2024.
Dividend
The company has declared an interim dividend of 220% i.e. ₹22 per equity share of face value ₹10 each fully paid-up for the financial year 2024-25, to be paid to those members whose names appear in the register of the company. The record date for the payment of interim dividend is Thursday, November 7. The interim dividend payout will be made to eligible shareholders on or before Sunday, November 24, 2024.
NCDs
Shriram Finance has approved the issuance of redeemable non-convertible debentures (NCDs) and subordinated debentures on a private placement basis to support its business operations.
Also Read: Bank of Baroda Q2 results: Net profit rises 23%, net interest income 7% up
Additionally, the company has issued a postal ballot notice seeking shareholder approval to renew the limit for issuing NCDs up to ₹35,000 crore on a private placement basis.
Stock split
The board has also approved a stock split, dividing each fully paid-up equity share of ₹10 face value into five fully paid-up shares of ₹2 each, subject to shareholder approval via postal ballot. The record date for the stock split will be announced following shareholder consent.
The results came after the close of the market hours. Shares of Shriram Finance Ltd ended at ₹3,117.95, down by ₹123.45, or 3.81%, on the BSE.