Shriram Finance shares decline 6.57% despite 18% surge in Q4 net profit

The shares of Shriram Finance Ltd dropped 6.57 percent in early trade today after the company recorded a consolidated net profit of Rs 1,288 crore for the fourth quarter of 2022-23, which is 18 percent higher as against Rs 1,091 crore reported in the year-ago period, according to a corporate filing.

For the entire fiscal, the company’s profit after tax climbed to Rs 6,020 crore, marking a steep surge of 122 percent as against Rs 2,721 crore clocked in FY22. The company said its board of directors has recommended a “final dividend of Rs 20 per equity share of a nominal face value of Rs 10 each fully paid up i.e. 200 percent, for the financial year 2022-23”.

The consolidated net interest income (NII) of Shriram Finance during the fourth quarter came in at Rs 4,533 crore, which is 72 percent higher than Rs 2,627.82 crore recorded a year back.

For the entire fiscal, the NII stood at Rs 17,272 crore, which is nearly double of Rs 9,316 crore for FY22. The total assets under management as on March 31, 2023, was Rs 1,93,729 crore, the company said, noting that it was Rs 1,27,040 crore in the year-ago period.

Stock Performance

The Shriram Finance stock has lost 5.01 percent of its value since the start of this year. Thus, underperforming the benchmark Nifty50 index, which has remained flat during the same duration.

On a five-year basis, the Shriram Finance stock has considerably been outperformed by the Nifty50 benchmark index. As the Shriram Finance stock has lost 15.33 percent of its value over the last five years. Whereas, the Nifty50 benchmark has given a return of 66.73 percent during the same duration.

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