Shriram Finance Ltd (formerly Shriram Transport Finance Ltd) Financials
|
Parameters(billion) |
FY22 |
FY23 |
|
NII |
93.16 |
169.63 |
|
PAT |
27.08 |
59.79 |
|
AUM |
1602.27 |
1856.83 |
|
Net worth |
259.04 |
433.06 |
|
NIM(%) |
6.62% |
8.37% |
|
CRAR(%) |
22.97% |
22.61% |
|
GNPA(%) |
7.07% |
6.21% |
|
NNPA(%) |
3.67% |
3.19% |
|
ROE(%) |
11.14% |
14.84% |
Shriram Finance Limited (SFL)[erstwhile Shriram Transport Finance Company Limited (STFCL)], incorporated in 1979, is a part of the Shriram Group of companies which has a strong presence in financial services in India, including commercial vehicle financing, consumer finance, life and general insurance, stockbroking, chit funds and distribution of financial products, such as life and general insurance products and mutual fund products.
Based on the National Company Law Tribunal (NCLT) order, the operations of Shriram City Union Finance Company Limited (SCUF) and Shriram Capital Limited were merged with STFC and STFC was renamed Shriram Finance Limited on November 30, 2022.
Shriram Finance Ltd has been assigned long term rating of AA+ by CRISIL, CARE and India Rating.
|
Shareholding patterns (as of March 23) |
|
|
Promoters |
25.50% |
|
FIIs |
49.80% |
|
DIIs |
11.80% |
|
Public |
13.00% |
Sale of stake by Piramal Enterprises Ltd-According to block deals data available with the exchanges, Piramal Enterprises Ltd has sold 8.34% stake in SFL on 21st June
|
Date |
ISIN |
Coupon (%) |
Yield (%) |
Maturity |
|
19/Jun/23 |
INE721A08DC8 |
10.25 |
8.75 |
26/04/2024 |
|
21/Jun/23 |
INE721A08DC8 |
10.25 |
8.62 |
26/04/2024 |
|
23/Jun/23 |
INE721A08DE4 |
10.25 |
9.08 |
27/12/2024 |
|
26/Jun/23 |
INE721A08DC8 |
10.25 |
8.67 |
26/04/2024 |
From the above bond yield movement, it can be seen that 10.25% SFL 2028 yield has improved by 8 bps since exit of Piramal Enterprisers Ltd.
Share price performance- Since 1 month, equity price of SFL has gained by 21% while it has increased by 36% past one year.
Credit Positive-
Ø Brand name
Ø Market leadership
Ø Operating performance
Ø Capitalization
Credit Negatives-
Ø Weak asset quality
Ø Sectoral risk
Market Leadership: SFL (erstwhile STFCL) is one of the largest asset financings NBFCs. Post merger, its assets under management (AUM) rose by 16% during FY23 on yearly basis.
Robust Capitalization level: Post merger, SFL’s net worth rose to Rs 433 billion as of 31st March 2023 from 259 billion as of 31st March 2022. Capital adequacy stood stable at 22.61% as of 31st March 2023.
Financial Performance: Post merger, net interest income rose by 82% on yearly basis. During FY23. Consequently, net profit rose by 120% during the same period. Net interest margin stood at 8.37% during last fiscal year.
NPA level: Post merger SFL’s asset quality has improved. As of 31th March 2023, its gross NPA stood at 6.21% as compared to 7.07% as of 31st March 2022 while net NPA came in at 3.19% as compared to 3.67% as of 31st March 2022.