- 28 Apr 2025
- ICICIdirect Research
SHRIRAM FINANCE REPORTED STEADY PERFORMANCE IN Q4FY25, WITH MODERATION IN AUM AND ELEVATED WRITE-OFF, THOUGH OPERATIONAL PERFORMANCE REMAINED BROADLY STEADY.
News: Shriram Finance reported steady performance in Q4FY25, with moderation in AUM and elevated write-off, though operational performance remained broadly steady. Disbursements grew by 14% YoY and 25% QoQ to ₹44,848 crore, while AUM increased by 15% YoY to ₹2,63,190 crore. Growth was supported by continued traction across key segments. NII rose 13% YoY and 4% QoQ to ₹6,051 crore, while PPOP grew by 6% QoQ to ₹4,335 crore. However, margins declined to 8.25% (-23 bps YoY and -77 bps QoQ), largely due to surplus liquidity. PAT stood at ₹2,139 crore, up 3% QoQ. GNPA declined 83 bps QoQ to 4.55%, owing to one-off write-off of ₹2,345 crore, related to fully provided accounts. Thus, PCR seems moderating to 43.3% (vs 51.8% YoY).
View: Guidance on growth at 15%, improvement in margins as liquidity is utilized in next 2 quarters and steady credit cost is expected to enable healthy performance ahead.
Impact: Neutral