The shares of India’s largest retail NBFC gained up to 6 percent after the company’s net profit and revenue increased by 4 percent and 19 percent respectively in the third quarter and announced a second interim dividend.
With a market capitalization of Rs 90,194.13 crore, the shares of Shriram Finance Ltd closed at Rs 2,401.00 per share, increased around 4.11 percent as compared to the previous closing price of Rs 2,306.15 apiece.
Looking into the company’s Performance, Shriram Finance Ltd’s revenue increased by 5 percent on a quarter-on-quarter basis from Rs. 8,884 crores in Q2FY24 to Rs. 9,301 crores in Q3 FY24. Further, revenue increased by 19 percent year on year from Rs. 7,795 crores in Q3FY23 to Rs.9,301 crores in Q3FY24.
Shriram Finance Ltd’s net profit increased by 5 percent on a quarter-on-quarter basis from Rs.1,792 crore in Q2FY24 to Rs. 1,874 crore in Q3FY24. Further, net profit increased by 4 percent yearly from Rs. 1,802 crore in Q3FY23 to Rs.1874 crore in Q3FY24.
For the fiscal year 2023-24, the firm issued a second interim dividend of 100 percent, i.e. Rs.10/- each equity share with a face value of Rs. 10/- and that is completely paid up.
With approximately 7.32 million consumers, the company prioritizes providing rapid borrowing solutions and adding value to stakeholders. The Company has 2,922 branches across India and an AUM of Rs. 185,682.86 crore as of March 31, 2023.
Shriram Finance Ltd. reported return ratios in the recent financial year with a return on equity (ROE) of 17.3 percent and a return on capital employed (ROCE) of 12.1 percent.
Shriram Finance Ltd’s recent shareholding pattern, The Promoters of the company own 25.43 percent while Retail shareholders own a 4.83 percent stake in the company and Foreign Institutional Investors own a 53.97 percent stake.
Shriram Finance Limited is largely in the business of financing commercial vehicles, passenger cars, construction equipment, agricultural equipment, micro, small, and medium-sized businesses, two-wheelers, gold, and personal loans. It provides fixed and regular deposits.
Written by:- Abhishek Singh
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