Any current/future new fundraising through debt or equity?

The company is actively looking at various options for capital infusion, especially for Shriram Housing Finance, due to its growth. They are considering fundraising to provide growth capital but have not specified exact plans or timelines. Incremental cost of borrowing has increased slightly to 8.95%, partly due to a mix of liabilities, including retail deposits, capital market borrowing, and external commercial borrowing (ECB). Recently raised ECB of $750 million at a 6.625% coupon to enhance liquidity. Liquidity coverage ratio and ALM surplus are strong, supporting funding needs. N

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

The company is considering options for growth capital as part of its strategy, indicating potential future capital investments. There is no explicit mention of current or immediate capex plans in the transcript. Focus appears on expanding product distribution, such as introducing gold loans in additional branches and growing MSME loans through phased recruitment. No detailed specifics provided on strategic investments or large-scale capex during the call. The emphasis is on leveraging the merged entity's expanded network for organic growth rather than heavy capital expenditure.

Future growth expectations in sales/revenue/volumes?

Company guided for about 15% overall growth at the beginning of the year, with current growth around 20% AUM growth for the ongoing year, but longer-term guidance remains at 15% (Page 10,16). Strong growth in personal loans (60-65%) driven by expanded distribution network (Page 17). Gold loan product introduced in 600 CV branches, with plans to expand to another 600 next year, indicating continued growth potential (Page 17). MSME loans expected to grow strongly, with phased recruitment and deployment of sales staff (Page 17). Two-wheeler segment continues robust growth, driven by new markets s

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

Shriram Finance projects maintaining a 15% AUM growth in the long term, despite a 20%+ growth seen this year due to strong economic activity. (Page 9,14) Net interest margin is expected to hold steady around 8.9%, supported by mix and ability to pass on costs. (Page 9) Profit After Tax (PAT) showed moderate growth of 2.33% YoY and 3.86% QoQ in Q3 FY'24; housing finance subsidiary posted strong PAT growth of 69.08% YoY and 27.57% QoQ. (Page 6,7) Earnings per share (EPS) was Rs.48.42 in Q3 FY'24 with housing finance EPS at Rs.1.88, reflecting profit growth. (Page 6,7) Management remains conf

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Shriram Finance LtdQ4 FY25Finance

Shriram Finance Ltd Q4 FY25 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

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Company guided for about 15% overall growth at the beginning of the year, with current growth around 20% AUM growth for the ongoing year, but longer-term guidance remains at 15% (Page 10,16).
→Strong growth in personal loans (60-65%) driven by expanded distribution network (Page 17).
→Gold loan product introduced in 600 CV branches, with plans to expand to another 600 next year, indicating continued growth potential (Page 17).
→MSME loans expected to grow strongly, with phased recruitment and deployment of sales staff (Page 17).
→Two-wheeler segment continues robust growth, driven by new markets such as Odisha, West Bengal, Northeast, UP, and MP; expected growth of around 25-30% going forward (Page 15,17).
→Construction equipment and commercial vehicle segments expected steady growth: CV growth guidance maintained at 12-15% (Page 10,16).
→Housing finance subsidiary growing strongly with 67.53% YoY AUM growth (Page 7).

Margin guidance

Category 3

→Shriram Finance projects maintaining a 15% AUM growth in the long term, despite a 20%+ growth seen this year due to strong economic activity. (Page 9,14)
→Net interest margin is expected to hold steady around 8.9%, supported by mix and ability to pass on costs. (Page 9)
→Profit After Tax (PAT) showed moderate growth of 2.33% YoY and 3.86% QoQ in Q3 FY'24; housing finance subsidiary posted strong PAT growth of 69.08% YoY and 27.57% QoQ. (Page 6,7)
→Earnings per share (EPS) was Rs.48.42 in Q3 FY'24 with housing finance EPS at Rs.1.88, reflecting profit growth. (Page 6,7)
→Management remains confident of sustaining earnings growth with credit cost guidance at 2% for the full year, asset quality stable, and growth fueled by expanded distribution and product scaling. (Page 6,17)

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Fundraise plans

Yes

→The company is actively looking at various options for capital infusion, especially for Shriram Housing Finance, due to its growth.
→They are considering fundraising to provide growth capital but have not specified exact plans or timelines.
→Incremental cost of borrowing has increased slightly to 8.95%, partly due to a mix of liabilities, including retail deposits, capital market borrowing, and external commercial borrowing (ECB).
→Recently raised ECB of $750 million at a 6.625% coupon to enhance liquidity.
→Liquidity coverage ratio and ALM surplus are strong, supporting funding needs.
→No explicit mention of equity fundraising; focus appears on debt and other capital-raising alternatives.

Order book

The transcript provided does not contain any direct mention or details about Shriram Finance Limited's current or expected order book or pending orders. The discussion primarily focuses on: - Growth in various loan segments (personal loans, gold loans, two-wheeler loans, MSME). - Asset quality and provisioning. - Branch expansions and product rollouts (e.g., gold loans introduced in 600 branches with plans for another 600). - Financial metrics such as AUM growth, credit cost, margins, and disbursements. - Liquidity, liabilities, and employee count. - General outlook on product growth and economic environment. No specific data on "order book" or "pending orders" is mentioned in the transcript for Q3 FY24.

Capex plans

Yes

→The company is considering options for growth capital as part of its strategy, indicating potential future capital investments.
→There is no explicit mention of current or immediate capex plans in the transcript.
→Focus appears on expanding product distribution, such as introducing gold loans in additional branches and growing MSME loans through phased recruitment.
→No detailed specifics provided on strategic investments or large-scale capex during the call.
→The emphasis is on leveraging the merged entity's expanded network for organic growth rather than heavy capital expenditure.

How does Shriram Finance Ltd rank vs peers in Finance?

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