Shriram Finance Limited — Updates, 25-04-2025: Press Release

### Updates

Shriram Finance Limited reported significant improvements in their financial performance. For the fourth quarter, the net interest income surged by 13.40% to ₹6,051.19 crore, while the profit after tax climbed 9.95% to ₹2,139.39 crore. The earnings per share increased to ₹11.38, representing a 9.85% growth year-on-year. For the fiscal year ending March 31, 2025, net interest income rose 15.99% to ₹22,835.09 crore, and profit after tax, including an exceptional one-time gain from the sale of a subsidiary, reached ₹9,761.00 crore. The company's total assets under management grew 17.05% to approximately ₹2.63 trillion. The board has proposed a final dividend of ₹3 per share, in addition to the earlier interim dividends, making the total for FY25 approximately ₹9.90 per share post-split. Management has emphasized a positive outlook backed by robust operational metrics and reduced gross stage 3 assets to 4.55%.

### Investor Presentations

1. **Financial Highlights**:

- Q4 FY25 revenue from operations: ₹11,454.23 crore (+20.66% YoY).

- PAT for Q4 FY25: ₹2,139.39 crore (+9.95% YoY).

- Earnings per share: ₹11.38 (+9.85% YoY).

- FY25 net interest income: ₹22,835.09 crore (+15.99% YoY).

2. **Strategic Initiatives and Growth Drivers**:

- Expansion of digital offerings, including the ShriramOne app, which recorded over 13.5 million downloads.

- Implementation of significant write-off strategies to manage asset quality effectively.

3. **Business Developments**:

- Completed the sale of a stake in Shriram Housing Finance, unlocking a one-time gain of ₹1,489.39 crore (net of tax).

4. **Market Position and Competitive Advantage**:

- Vast network of 3,220 branches enhancing customer access and service delivery.

- Leadership in financing pre-owned commercial vehicles and two-wheelers.

5. **Investor Implications**:

- Strong performance indicators and strategic initiatives suggest potential growth, with a positive outlook supported by enhanced asset quality management.

### Company Announcements

- **Press Release**: The board meeting culminated in the approval of audited financial statements for FY25, highlighting a strategic focus on digital transformation and operational efficiency improvements alongside significant revenue and profit growth.

- **Monthly Business Updates**: The gross stage 3 assets improved to 4.55% in Q4 FY25 from 5.38% in Q3 FY25, primarily due to aggressive asset write-off strategies.

- **Declaration of Financial Results**: The joint auditors issued unmodified opinions on the audits for standalone and consolidated financial results, confirming strong compliance with regulatory standards.