Any current/future new fundraising through debt or equity?

The company continues to maintain a diversified liability profile, including retail deposits, securitization, external commercial borrowings (ECB), bank loans, and capital market instruments. There is no specific mention of immediate new fundraising through equity or debt in the current quarter. The company has a large offshore borrowing program that will be tapped as and when opportunities arise. The total cost of debt has marginally come down, indicating active management of liabilities. The liquidity position is strong with INR15,229 crores of liquid assets as of June-end, maintaining three

Any current/future capex/capital investment/strategic investment?

No explicit mention of current or future capex or strategic investment plans was provided in the extracted discussion. Focus appears on branch expansion, particularly in the MSME segment, with plans to add about 250 MSME branches over the next two years. Emphasis is on growing the product basket within existing branches to improve customer retention. Investment in human capital is ongoing, with succession planning well in place at all levels including branch managers. Discussions highlight the company’s operational improvements, asset quality, product diversification, and branch expansion rath

Future growth expectations in sales/revenue/volumes?

Disbursement growth registered at 23.82% YoY in Q1 FY25; AUM grew 20.82% YoY, indicating strong momentum. Guidance for FY25 AUM growth remains at 15%, with potential to exceed due to better-than-expected Q1 performance and strong credit uptake post-elections. Vehicle financing expected to grow ~12–15% currently; potential acceleration in used commercial and passenger vehicle financing in next 1–2 years due to new vehicle cycles. MSME and gold loan segments targeted for faster growth; MSME loan book expected to grow 20%+; two-wheeler financing at 15–18%. Expansion of MSME financing acro

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects to exceed its earnings guidance, focusing on bottom line growth rather than just AUM growth (Page 12). Growth will be driven by improved product mix and expansion into new geographies with high growth opportunities (Page 12). MSME and gold loan segments are expected to grow faster than vehicle loans, with MSME targeted at 20%+ growth and two-wheeler loans at 15-18% (Page 7). Used commercial and passenger vehicle financing growth may improve over the next 1-2 years as the new vehicle cycle matures (Page 7). PAT grew 18.21% year-on-year in Q1 FY25, indicating positive earning

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Shriram Finance LtdQ2 FY24Finance

Shriram Finance Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹993P/E: 22.0Market Cap: ₹2.2L CrSector: Finance

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Disbursement growth registered at 23.82% YoY in Q1 FY25; AUM grew 20.82% YoY, indicating strong momentum.
→Guidance for FY25 AUM growth remains at 15%, with potential to exceed due to better-than-expected Q1 performance and strong credit uptake post-elections.
→Vehicle financing expected to grow ~12–15% currently; potential acceleration in used commercial and passenger vehicle financing in next 1–2 years due to new vehicle cycles.
→MSME and gold loan segments targeted for faster growth; MSME loan book expected to grow 20%+; two-wheeler financing at 15–18%.
→Expansion of MSME financing across branches: ~250 new branches to be added over next two years, raising MSME coverage to about 30% of total branches.
→Growth driven by changing public transport dynamics and increased vehicle ownership in semi-urban and rural areas, supporting used vehicle financing momentum.

Margin guidance

Category 3

→The company expects to exceed its earnings guidance, focusing on bottom line growth rather than just AUM growth (Page 12).
→Growth will be driven by improved product mix and expansion into new geographies with high growth opportunities (Page 12).
→MSME and gold loan segments are expected to grow faster than vehicle loans, with MSME targeted at 20%+ growth and two-wheeler loans at 15-18% (Page 7).
→Used commercial and passenger vehicle financing growth may improve over the next 1-2 years as the new vehicle cycle matures (Page 7).
→PAT grew 18.21% year-on-year in Q1 FY25, indicating positive earnings momentum (Page 5).
→EPS for Q1 FY25 stood at INR52.70 compared to INR44.73 in Q1 FY24 and INR51.79 in Q4 FY24 (Page 5).
→Branch expansion in MSME (~250 new branches over two years) would contribute further to growth (Pages 13-16).

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Fundraise plans

→The company continues to maintain a diversified liability profile, including retail deposits, securitization, external commercial borrowings (ECB), bank loans, and capital market instruments.
→There is no specific mention of immediate new fundraising through equity or debt in the current quarter.
→The company has a large offshore borrowing program that will be tapped as and when opportunities arise.
→The total cost of debt has marginally come down, indicating active management of liabilities.
→The liquidity position is strong with INR15,229 crores of liquid assets as of June-end, maintaining three months of liability repayments.
→Incremental cost of funds is stable around 8.8%, slightly down from the previous quarter.
→Discussions with rating agencies are ongoing, but no immediate fundraising linked to rating upgrades was mentioned.

Order book

The provided transcript does not explicitly mention the current or expected order book or pending orders for Shriram Finance Limited. The discussion mainly revolves around financial performance, asset quality, growth strategies, branch expansions, product mix, disbursements, and macroeconomic factors affecting the business. There is no detailed data or commentary on order books or pending orders in the available pages of the transcript. For specific information on order books or pending orders, official company disclosures or separate reports would be needed.

Capex plans

Yes

→No explicit mention of current or future capex or strategic investment plans was provided in the extracted discussion.
→Focus appears on branch expansion, particularly in the MSME segment, with plans to add about 250 MSME branches over the next two years.
→Emphasis is on growing the product basket within existing branches to improve customer retention.
→Investment in human capital is ongoing, with succession planning well in place at all levels including branch managers.
→Discussions highlight the company’s operational improvements, asset quality, product diversification, and branch expansion rather than capital expenditure or strategic investments.
→No direct reference to capital expenditure or large-scale strategic investments in fixed assets or technology was noted in the available excerpts.

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