Shriram Finance Q4 PAT up 21% y-o-y, falls 26% q-o-q on merger integration

Shriram Finance posted a net profit of ₹1,308 crore for Q4 FY23, up 21 per cent on year but 26 per cent lower sequentially.

The figures for the quarter include the effect of merger of Shriram City Union Finance and Shriram Capital into Shriram Transport Finance effective December 2022, and are thus not entirely comparable with previous figures.

Net Interest Income (NII) for the quarter was up 69 per cent y-o-y and 0.4 per cent q-o-q at ₹4,446 crore. Net interest margin (NIM) was at 8.6 per cent, slightly better than 8.5 per cent a quarter ago and 7.0 per cent a year ago.

• Also read: Shriram Finance posts ₹1,777 crore PAT in first quarter post merger

The profit after tax for FY23 more than doubled to ₹5,979 crore from ₹2,708 crore in the previous year. NII was up 82 per cent at ₹16,963 crore.

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Assets under management were up 50 per cent y-o-y and 12 per cent q-o-q to ₹1.9-lakh crore as of March 31. For the quarter, personal loans grew 61 per cent y-o-y and 16 per cent q-o-q, passenger vehicle loans grew 25 per cent y-o-y and 7 per cent q-o-q, and two-wheeler loans grew 18 per cent y-o-y and 4 per cent q-o-q.

Gross stage 3 assets ratio improved to 6.2 per cent from 6.3 per cent a quarter ago and 7.1 per cent a year ago. Net stage 3 assets ratio at 3.2 per cent was flat from the previous quarter but better than 3.7 per cent in the year ago period.

• Also read: There is nothing called ‘too big to fail’, says YS Chakravarti, MD & CEO, Shriram Finance

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