Shriram Finance Q4 PAT up 21% y-o-y, falls 26% q-o-q on merger integration
Shriram Finance reported a net profit of INR 1,308 crore for the fourth quarter of FY23, up by 21 per cent year-on-year but lower by 26 per cent sequentially.
The quarter figures include the impact of the merger of Shriram City Union Finance and Shriram Capital V Shriram Transportation Finance As of December 2022, and therefore not quite comparable to previous figures.
Net Interest Income (NII) for the quarter increased by 69 per cent YoY and 0.4 per cent QoQ at Rs.4,446 crore. Net interest margin was 8.6 percent, slightly better than 8.5 percent in the previous quarter and 7.0 percent a year ago.
Profit after tax for FY23 more than doubled to Rs.5,979 crore from Rs.2,708 crore in the previous year. NII is up 82 per cent at Rs. 16,963 crore.
Assets under management increased by 50 per cent YoY and 12 per cent QoQ to INR 1.9 crore as of March 31st. For the quarter, personal loans grew 61 percent year-over-year and 16 percent quarter-over-quarter, and passenger car loans grew 25 percent year-over-year. And 7 percent quarter-over-quarter, and two-wheeler loans grew 18 percent year-over-year and 4 percent quarter-over-quarter.
Stage 3 total assets ratio improved to 6.2 percent from 6.3 percent in the previous quarter and 7.1 percent a year ago. The third stage net asset ratio was at 3.2% flat from the previous quarter but better than the 3.7% in the same period last year.