Shriram Finance Ltd reported a robust financial performance for the third quarter of FY25, with net profit rising 96 percent year-on-year to Rs 3,570 crore, driven by a one-time post-tax gain of Rs 1,489 crore from housing finance subsidiary stake sale. The erstwhile subsidiary Shriram Housing Finance Ltd has now been renamed Truhome Finance Ltd.
Shriram Finance’s share price fell, having traded in green for most of the day, and was down 1.6 percent at Rs 521 soon after the Q3 results announcement.
Excluding this one-time gain, Shriram Finance’s profit after tax grew 14.4 percent on-year to Rs 2,080 crore, compared to Rs 1,818 crore in the same period last year.
The financier’s net interest income (NII) increased by 14.3 percent to Rs 5,823 crore during the quarter, up from Rs 5,094 crore recorded in the year-ago period, it said in a statement.
Meanwhile, the basic earnings per share, excluding the one-time gain, rose 14.4 percent to Rs 11.07 from Rs 9.68 in the same period last year.
Shriram Finance’s assets under management (AUM) as of December 31, 2024, stood at Rs 2.54 lakh crore, marking an 18.8 percent year-on-year increase from Rs 2.14 lakh crore a year earlier. On a sequential basis, AUM grew from Rs 2.43 lakh crore as of September 30, 2024.
The company’s board has also declared an interim dividend of Rs 2.5 per share (125 percent), with the record date for entitlement set as January 31, 2025. Eligible shareholders will receive the dividend on or before February 22, 2025.
The robust quarterly results were further bolstered by the completion of the sale of its entire stake in Shriram Housing Finance Ltd. (now renamed Truhome Finance Ltd.) to Mango Crest Investment Ltd., an affiliate of Warburg Pincus, for Rs 3,929.03 crore on December 11, 2024. This divestment resulted in a significant post-tax gain of Rs 1,489 crore, contributing to the company’s net profit.
During the quarter, the Board also approved a resource mobilisation plan, which includes the issuance of redeemable non-convertible debentures (NCDs) 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 period, reducing the face value of equity shares from Rs 10 to Rs 2, with the revised shares coming into effect on January 10, 2025.
Additionally, 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.
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