{"id":166615,"date":"2025-01-29T09:30:29","date_gmt":"2025-01-29T14:30:29","guid":{"rendered":"https:\/\/44.250.171.167\/?p=166615"},"modified":"2025-02-03T07:32:44","modified_gmt":"2025-02-03T12:32:44","slug":"shriramfin-q3-2024-2025-call-highlights-margin-recovery-nim-rebound-npas-decline","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/shriramfin-q3-2024-2025-call-highlights-margin-recovery-nim-rebound-npas-decline\/","title":{"rendered":"SHRIRAMFIN Q3 2024-2025 Call Highlights: Margin Recovery, NIM Rebound &#038; NPAs Decline!"},"content":{"rendered":"<p>Shriram Finance Ltd., India\u2019s one of the biggest retail NBFC, in its Q3 earnings call explained that NIM compression was due to excess liquidity and asset mix changes, while maintaining confidence in keeping credit costs below 2% despite some increase in Stage 3 assets in Commercial Vehicle (CV) and MSME segments. Loan-to-Value \u00a0(LTV) ratios remain at 70% for used vehicles, and they&#8217;re optimistic about fleet utilization and operator economics in the CV segment, having also entered EV lending. The company expects the cost-to-income ratio to moderate to 28% and attributed temporary gold loan de-growth to seasonal festival-related redemptions. In two-wheeler financing, the management aims to grow at double the market rate plus 2%, targeting new customers.<\/p>\n<p>Shriram Finance reported strong financial results for Q3, with consolidated net profit increasing by 73% year-over-year. The company&#8217;s total income rose by 20%, while net interest income grew by 14.31% to INR5,823 crore. The NBFC&#8217;s asset quality improved, with gross NPAs declining to 5.38% from 5.66% and net NPAs decreasing to 2.68% from 2.72% year-over-year. Total assets under management increased to INR2,54,469.69 crore, up 19% year-over-year. The company expects to maintain mid-teen growth in FY26 supported by GDP growth above 6.5%, with plans to freeze hiring and focus on digital platform-driven productivity improvements.<\/p>\n<p>Continue Reading: Discover the Vital Insights from Shriram Finance Ltd.&#8217;s Earnings Call!<\/p>\n<p><strong>Financial\/Operational Metrics:<\/strong><\/p>\n<ul>\n<li><strong>Revenue from Operations:<\/strong> INR10,698 crores, up 20% YoY.<\/li>\n<li><strong>Net Profit:<\/strong> INR3,249 crores, up 73% YoY.<\/li>\n<li><strong>Earnings Per Share<\/strong>: INR17.27, up 74% YoY.<\/li>\n<li><strong>Net Interest Income<\/strong>: INR5,822.69 crores, up 14.31% YoY.<\/li>\n<li><strong>Total Assets Under Management<\/strong>: INR2,54,469.69 crores, up 18.78% YoY.<\/li>\n<\/ul>\n<p><strong>Outlook:<\/strong><\/p>\n<ul>\n<li><strong>Government Spending: <\/strong>Expected to increase with new projects and budget announcements.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Analyst Crossfire:<\/strong><\/p>\n<ul>\n<li><strong>NIM Decline &amp; Liquidity Impact, Asset Mix &amp; NIM Trends (Chintan Joshi &#8211; Autonomous): <\/strong>The drop in NIMs was mainly due to excess liquidity, causing a 20 bps impact. As liquidity normalizes over the next two quarters, margins should recover. NIMs are also affected by the asset mix, particularly higher demand for new vehicle loans, which have lower yields. The impact varies based on the new-to-used vehicle ratio<strong> (S. Sunder &#8211; Joint MD, Parag Sharma \u2013 MD &amp; CFO).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Liquidity Management &amp; Borrowing Plans, Gold Loan Portfolio Performance (Raghav Garg &#8211; Ambit, Bhumin Shah &#8211; Sameeksha): <\/strong>Excess liquidity will be reduced gradually over the next two quarters, with borrowing moderation planned to align with the company&#8217;s three-month liquidity policy. Gold loan AUM saw sequential decline, but Stage 3 assets remained stable in absolute terms. Growth is expected to pick up in Q4 and the next fiscal year<strong> (Parag Sharma \u2013 MD &amp; CFO, Y.S. Chakravarti \u2013 MD &amp; CEO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Fleet Utilization &amp; Operator Profitability, Operating Expenses Increase (Raghav Garg &#8211; Ambit, Bhumin Shah &#8211; Sameeksha): <\/strong>Despite concerns from other industry players, fleet utilization remains strong with no major idling. Improved infrastructure and GST reforms support operator profitability. Opex rose due to hiring 1,614 employees and increased overheads. The cost-to-income ratio should stabilize around 28% in upcoming quarters<strong> (Parag Sharma \u2013 MD &amp; CFO , Y.S. Chakravarti \u2013 MD &amp; CEO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Credit Cost &amp; MSME Portfolio Trends, Gold Loan Portfolio Degrowth (Kunal Shah \u2013 Citigroup, Rajiv Mehta &#8211; YES Securities): <\/strong>Stage 2 assets in MSME lending appear high, but historical trends show slippages correct over time. No structural asset quality concerns. The decline in the gold loan book is seasonal, driven by festive redemptions, not operational changes. Growth is expected to pick up in Q4<strong> (Y.S. Chakravarti \u2013 MD &amp; CEO)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>M&amp;HCV Demand &amp; Infrastructure Spending, Scrappage Policy Impact (Abhishek Jain &#8211; AlfAccurate): <\/strong>Demand for medium and heavy commercial vehicles (M&amp;HCV) was sluggish due to elections and heavy rains but is expected to rebound in Q4 as government infrastructure spending increases. The government\u2019s voluntary scrappage policy is unlikely to significantly impact new vehicle sales<strong> (Umesh G. Revankar &#8211; Executive Vice Chairman)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Two-Wheeler Loan Growth &amp; Asset Quality, Net Interest Margins (Suraj Das &#8211; Sundaram, Sharat Dua &#8211; Amundi): <\/strong>The company aims for 12% growth, twice the market rate. Despite concerns in the industry, asset quality remains stable due to strong collection mechanisms. NIMs should improve as excess liquidity is utilized. Seasonal new vehicle demand in Q4 may have some impact, but major effects will be seen in Q1 next year<strong> (Y.S. Chakravarti \u2013 MD &amp; CEO)<\/strong>.<\/li>\n<\/ul>\n<p><strong>To get further Insights: <a href=\"https:\/\/app.asai.alphastreet.io\/test-drive\/transcript\/view\/a1c0082d-7b60-5996-b24e-2850f19802b3\/earnings_conference\" target=\"_blank\" rel=\"noopener\">Click Here<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shriram Finance Ltd., India\u2019s one of the biggest retail NBFC, in its Q3 earnings call explained that NIM compression was due to excess liquidity and asset mix changes, while maintaining confidence in keeping credit costs below 2% despite some increase in Stage 3 assets in Commercial Vehicle (CV) and MSME segments. Loan-to-Value \u00a0(LTV) ratios remain [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[10169,1792],"class_list":["post-166615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-earnings","tag-financial-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":168175,"url":"https:\/\/alphastreet.com\/india\/bajfinance-q4-call-highlights-growth-projections-credit-quality-focus-and-nim-stability\/","url_meta":{"origin":166615,"position":0},"title":"BAJFINANCE Q4 Call Highlights: Growth Projections, Credit Quality Focus and NIM Stability!","author":"Praveen","date":"May 1, 2025","format":false,"excerpt":"Bajaj Finance Ltd, a prominent Indian non-banking financial company (NBFC) offering a wide range of financial services, including loans, deposits, and other financial products, in its Q4 earnings call discuss its FY26 outlook, projecting slightly moderated 24-25% growth to prioritize credit quality improvement despite its small 2.14% market share. Management\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":139188,"url":"https:\/\/alphastreet.com\/india\/pnb-housing-finance-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":166615,"position":1},"title":"PNB Housing Finance Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"January 25, 2023","format":false,"excerpt":"Key highlights from PNB Housing Finance Ltd (PNBHOUSING) Q3 FY23 Earnings Concall Q&A Highlights: [00:12:21] Abhijit Tibrewal from Motilal Oswal asked about why margins expanded in the rising rate environment, and how long this one-off from assignment loans can continue. Girish Kousgi MD said that for the company it should\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":160615,"url":"https:\/\/alphastreet.com\/india\/bajaj-finance-ltd-q4-fy24-earnings-conference-call-insights\/","url_meta":{"origin":166615,"position":2},"title":"Bajaj Finance Ltd Q4 FY24 Earnings Conference Call Insights","author":"Praveen","date":"April 26, 2024","format":false,"excerpt":"Key highlights from Bajaj Finance Ltd (BAJFINANCE) Q4 FY24 Earnings Concall AUM Growth FY24 delivered record AUM growth of INR 83,236 crores, 34% YoY. Q4 AUM growth was INR 19,647 crores. Growth driven by 36.2 million loans disbursed and 14.5 million new customers added in FY24. BHFL (housing finance subsidiary)\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":168144,"url":"https:\/\/alphastreet.com\/india\/shriramfin-q4-call-highlights-disbursement-dip-aum-surge-msme-momentum\/","url_meta":{"origin":166615,"position":3},"title":"SHRIRAMFIN Q4 Call Highlights: Disbursement Dip, AUM Surge &#038; MSME Momentum!","author":"Praveen","date":"April 29, 2025","format":false,"excerpt":"Shriram Finance Ltd, India\u2019s one of the biggest retail NBFC offering credit solutions for commercial vehicles, two-wheeler loans, car loans and home loans, in its Q4 earnings call projected segment-wise growth of 12-15% for commercial vehicles and 20% for both passenger vehicles and MSME, with an overall growth guidance of\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":138765,"url":"https:\/\/alphastreet.com\/india\/indusind-bank-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":166615,"position":4},"title":"Indusind Bank Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"January 19, 2023","format":false,"excerpt":"Key highlights from Indusind Bank Ltd (INDUSINDBK) Q3 FY23 Earnings Concall Management Update: [00:13:56] INDUSINDBK opened 64 branches during 3Q, totaling the branch count to 2,384 and the bank is aiming to close FY23 at 2,450-2,500 branches. Q&A Highlights: [00:23:22] Mahrukh Adajania from Nuvama Wealth asked about the new ECL\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":139080,"url":"https:\/\/alphastreet.com\/india\/pnb-housing-finance-limited-q3fy23-earnings-summary\/","url_meta":{"origin":166615,"position":5},"title":"PNB Housing Finance Limited Q3FY23 Earnings Summary","author":"Karan_Singh","date":"January 24, 2023","format":false,"excerpt":"Individual house loans, loans secured by property, and loans for non-residential property are only a few of the housing and non-housing loans that PNB Housing Finance provides to retail consumers.\u00a0 Financial Results: PNB Housing Finance Ltd.\u2019s net interest income in Q3FY23 rose 67% to \u20b9 734 crores. Consolidated Profit After\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-91157510.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-91157510.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-91157510.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-91157510.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=166615"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166615\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/162998"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=166615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=166615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=166615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}