Shriram Finance Q4 preview: Profit to likely jump 46% YoY; asset quality to improve

The recent entrant to the bluechip index Nifty 50-Shriram Finance is slated to report its Q4 earnings on April 26. Zee Business research desk estimates the company to report a significant growth in profit on a standalone basis by 46 per cent to Rs 1910 crore from Rs 1910 crore reported in the corresponding period of the previous year.

Net interest income or NII at the company also logged a decent 25.1 per cent growth during the period to Rs 5230 crore as against Rs 4181 crore in the same period last year.

The assets under management (AUM) at the financial services provider logged a healthy jump of 20-22 per cent, while loan growth was at 20-21 per cent during the review quarter. Asset quality at the company also improved sequentially with GNPA at 5.6 per cent versus 5.66 per cent in the preceding quarter, while NPA also came down to 2.7 per cent as against 2.72 per cent in the quarter ending December.

However, net interest margin is seen to remain steady at 8.9-9 per cent versus 8.99 per cent in the previous quarter.

The research team is of the view that the company will see increasing  benefit on the back of increased demand for pre-used commercial vehicles or CVs. Also, collections at the company are expected to get better going ahead.

Shriram Finance Q3 earnings

In the previous quarter, the company posted total revenue of Rs 8927.3 crore on a standalone basis. While the operating margin decline on a year on year basis to 70.48 per cent. Nevertheless, net profit logged a growth and came in at Rs 1818.3 crore.

Shriram Finance share price performance

The stock over the last one year has gained 79 per cent and last was trading at Rs 2434.7, up 0.32 per cent.