Shriram Finance, the largest retail non-banking financial company, reported a 18.3% rise in its net profit to Rs 2,071.26 crore from Rs 1,750.84 crore on year-on-year basis on Friday, driven by strong demand in its key lending segments.
The Net Interest Income (NII) for the quarter ended September, increased by 16.37% to Rs 5,606.74 crore as against Rs 4,818.18 crore in the same period of the previous year.
The gross non-performing asset (NPA) for the quarter fell to 5.32% from 5.79% a year ago.
Net NPA was at 2.64%, down from 2.80% on a year-on-year basis.
Its borrowing sources include loans from banks, the bonds it issues, and fixed deposits.
The company’s board declared an interim dividend of Rs 22 per share and has set the record date on November 7.
At the end of the meeting, the company announced a stock split. The company will split one share with a face value of Rs 10 into five shares of face value of Rs 2.
For the reported quarter, the company’s total assets under management (AUM) rose by 20% to Rs 2,43,042 crore as compared to Rs 2,02,641 crore as on September 30, 2023 and Rs 2,33,444 crore as on June 30, 2024.
The company reported a standalone net profit of Rs 2,071 crore for the quarter ended September, compared to Rs 1,751 crore a year ago. Demand for commercial vehicles, along with its small business credit segments heavily boosted the earnings. Commercial vehicle loans swelled by 14% to Rs 1.12 lakh crore, while loans to medium and small industries grew 51.6%.