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Shriram Finance Ltd. Q1FY25 Result First Cut - Decent performance across all parameters

* Net Interest Income stood at Rs. 5,354 crores in Q1FY25, showing a growth of 0.4% QoQ / up 20.6% YoY.

* Pre-provision operating profit (PPOP) stood at Rs. 3,780 crores in Q1FY25, showing a de-growth of 0.1% QoQ / up 22.9% YoY.

* Provisions declined to Rs. 1,188 crores in Q1FY25 from Rs. 1,261 crores in Q4FY24 and up to Rs. 879 crores in Q1FY24.

* The bank’s quarterly net profit of Rs. 1,981 crores in Q1FY25 was up by 1.8% QoQ / up 18.2% YoY.

* NIM stood at 8.79% in Q1FY25 and was down 23bps YoY and up 46bps QoQ. The NIM was largely constant due to stable yield on advances.

* Cost to Income ratio stood at 27.45% in Q1FY25 compared to 26.61% in Q4FY24 and 28.85% in Q1FY24.

* Gross NPA stood at 5.39% in Q1FY25 which declined by 6bps QoQ and was down 64bps YoY.

* Net NPA stood at 2.71% in Q1FY25, down 1bps and down 25bps YoY.

* Capital Adequacy Ratio stood at 20.29% in Q1FY25 compared to 20.30% Q4FY24 and 22.40% in Q1FY24.

* Assets under management (AUM) as of June 30, 2024, increased by 20.82% and stood at   Rs. 2,33,444 crores as compared to Rs. 1,93,215 crores as of June 30, 2023, and Rs. 224,862 crores as of March 31, 2024.

* RoA declined to 3.12% in Q1FY25 compared to 3.19% in Q4FY24 and 3.10% in Q1FY24

* CASA stood at 37% in Q1FY25, compared to 38% in Q4FY24 and 40% in Q1FY24.

* Shriram Finance (SFL) & Valiant Partners LP (“Valiant”) have entered into a Share Purchase Agreement to sell their stakes in Shriram Housing Finance Limited (“SHFL”) to Warburg Pincus (“Warburg”) for a total deal value of Rs. 4,630 crores for the equity and convertible instruments of SHFL. SFL will receive Rs. 3,900 crores from the sale of its investment in the subsidiary, resulting in an increase in CRAR by around 80bps. The deal is expected to get regulatory approval by the end of the third quarter of the current financial year.

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