Shriram Finance on Friday reported a 96% jump in its net profit to Rs 3,570 crore for the quarter ended December, compared with Rs 1,818.33 crore for the same period last year, boosted by one time post-tax gain of Rs 1,489 crore from selling stake in the housing finance subsidiary.
The NBFC announced a second interim dividend of 125% at Rs 2.5 per equity share of face value Rs 2 each for 2024-25, subject to deduction of tax at source. The record date for the payment of dividends will be January 31. Eligible shareholders will receive the dividend on or before February 22, the company said in the investor presentation.
Shares of Shriram Finance closed 0.5% lower at Rs 527.35 on the BSE.
Excluding the one-time gain, the profit after tax grew 14.4% to Rs 2,080 crore.
Net interest income rose 14.3% to Rs 5,823 crore, from Rs 5,094 crore in the year-ago period.
As of December 31, assets under management stood at Rs 2.54 lakh crore, rising 18.8% on a yearly basis.
During the quarter, the board approved issuance of redeemable non-convertible debentures and subordinated debentures through private placement or public issue from February 1, 2025, to April 30, 2025, to support business expansion.
The company implemented a stock split during the third quarter, reducing the face value of shares from Rs 10 to Rs 2 with effect from January 10, 2025.
Shriram Finance allotted 69,513 equity shares (pre-split) under its employee stock option scheme 2023 at an exercise price of Rs 193.55 per share.
The company witnessed some stress in commercial vehicles, commercial equipment, gold loans and personal loans segments. The gross stage 3 asset ratio in the commercial vehicle business rose 12 basis points quarter-on-quarter to 5.91%. Commercial equipment loans saw the gross stage 3 asset ratio rising 24 basis points to 6.58%.
Provisions against stage 3 assets rose 8% sequentially to Rs 3,162 crore.
