Shriram Finance Q2 preview: PAT estimated to grow 18.7% amid robust AUM growth

Shriram Finance Q2FY25 preview: The non-banking financial company (NBFC) Shriram Finance is scheduled to report its September quarter earnings on Friday (October 25). Zee Business research estimates the company to post healthy Q2 performance with profit after tax rising 18.7 per cent year-on-year (YoY) to Rs 2,076 crore. In the same period last year, the company's PAT stood at Rs 1,750 crore.

Net interest income (NII)- the difference between the interest earned and interest paid is also estimated to increase 18 per cent YoY during the review period from Rs 4,818 crore in Q2FY24 to Rs 5,529 crore in Q2FY25.

Furthermore, analysts expect total assets under management (AUM) at the company to grow 20 per cent on-year during the review quarter. In the previous June quarter, the company's AUM was recorded at Rs  2,33,443.63 crore, while in Q2FY24 it was at Rs 2,02,640.96 crore.

The research desk anticipates the NBFC's CV portfolio to perform better during Q2. 

Key monitorable 

The shareholders will keenly watch out for the company's performance in the 2-wheeler and personal loan segments during the review period.

Shriram Finance to also consider interim dividend, stock split

Alongside the financial results, the company will also consider stock split of its equity shares together with the interim dividend for the financial year 2024-25. The company in its filing with the exchanges said that its board meeting is scheduled on October 25 to consider; 

"Proposal of alteration in the share capital of the Company by sub-division/ split of existing equity shares having face value of Rs. 10/- each, fully paid up in such manner as may be determined by the Board of Directors, subject to approval of the Members of the Company,"  it added.

Shriram Finance share price

Ahead of its results tomorrow, shares of the NBFC traded with gains of 0.72 per cent at Rs 3,220.95 apiece. In the last one year, the stock has zoomed over 71 per cent, while it is trading with a gain of over 82 per cent from its 52-week low price of Rs 1760.8.