Shriram Finance Limited · NSE:SHRIRAMFIN
Shriram Finance — Q3 FY2025 Earnings Presentation
63 slides from Shriram Finance's earnings presentation, Jan 24, 2025
Slide 1: Investor Presentation – Q3 & 9M FY 2025
On a journey to become the most preferred Financial Services destination Investor Presentation – Q3 & 9M FY 2025 January 24, 2025
Slide 2: Agenda
Company Overview 3 Business Model/Competitive Strengths 8 Market Dynamics & Growth Strategy 11 Organizational Structure 16 24 Shriram Super App Performance Track Record 25 Recent Performance – Q3 FY25 35 2
Slide 3: Company Overview
COMPANY OVERVIEW 3
Slide 4: Company Snapshot
Company Snapshot Leading player in organized high yield pre-owned CV financing segment and Two-wheeler segment. Diversified Portfolio – PCV’s, Construction Equipment, Tractor Financing, Personal Loans, Gold Loans, MSME Finance Over 9.44 million customers Large network of 3,196 Branch offices and 650
Slide 5: Corporate History
Corporate History Securitised Rs. 87.57 Tied up with Merger of Shriram bn during FY 2010. Citicorp for CV Investment Ltd. and financing under Shriram Overseas Successfully raised Portfolio Finance Ltd. with Rs. 5.84 bn through Management STFC; PAT crosses QIP with domestic & Services (PMS) R
Slide 6: Corporate History (Contd.)
Corporate History (Contd.) Successfully raised Rs. 13.5 Bn through issuance Raised Rs. 14.92 bn through right of ‘Masala Bonds’ – Senior Raised maximum permissible issue in August 2020 Secured Rupee US$ 750 million through ECB Raised Rs. 36.69 bn and Rs. Denominated Bonds’ listed route durin
Slide 7: Corporate History (Contd.)
Corporate History (Contd.) Shriram City Union Finance Limited and Shriram Capital Limited merged with Shriram Transport Finance Company Limited and was renamed as Shriram Finance Limited (SFL). The Company is a leader in organised financing of pre-owned commercial vehicles and two-wheelers. It h
Slide 8: Business Model / Competitive Strengths
BUSINESS MODEL / COMPETITIVE STRENGTHS 8
Slide 9: Strategic Presence In High Yield Used CV Segment
Strategic Presence In High Yield Used CV Segment CV Financing Business Model Pre-Owned New Age of Truck 1 2 3 4 5 6 7 8 9 10 11 12 Lending Rates 14-16% 16-24% 12-16% Small truck owners (less than 5 trucks) with underdeveloped Existing customer base upgrading to new trucks Target Segment banking
Slide 10: Valuation Expertise & Relationship Based Model
Valuation Expertise & Relationship Based Model Knowledge Driven Valuation Model Critical Success Factor Vehicle Assessment Loan Amount Valuation EMI Old CVs 60-70% LTV Ratio Repayment Ability New CVs 75-80% LTV Ratio SFL has right mix of scale and skill Awareness of load structure / business mix Rel
Slide 11: Market Dynamics & Growth Strategy
MARKET DYNAMICS & GROWTH STRATEGY 11
Slide 12: Strong Industry Potential – Commercial Vehicles
Strong Industry Potential – Commercial Vehicles Market Potential (Rs. bn) Trucks (mn) Market for second hand truck financing is under penetrated with 55-60% of the market with private financiers / money lenders who 4,336 28% charge high interest rates 34% Stringent traffic regulations in major c
Slide 13: Strong Industry Potential – Other Portfolio Segments
Strong Industry Potential – Other Portfolio Segments Construction Two Wheelers Passenger Vehicles Tractor Financing Automall Equipment (Only New) Market Size Rs. 1,400 billion NA Rs. 1,225 billion Rs. 6,000 billion Rs. 1,845 billion (FY25) PM Gati Shakti with Access to ready Key Driver Personal Mobi
Slide 14: Transportation Model – Multiple Financing Opportunities
Transportation Model – Multiple Financing Opportunities Hub and Spoke Transportation Model Long Haul Medium Haul Short Haul Last Mile >800 kms 350-800 kms 50-350 kms <50 kms Load re-distributed from few large hubs in major regions of the country to large number of touch points in the hinterland CV L
Slide 15: Growth Strategy
Growth Strategy Strengthening presence Introduction of top-up and expanding reach products like finance for tyres, working capital and Increase penetration into engine replacement rural and urban centers Target AUM (Rs. bn) Economies of scale - Increase penetration of incremental cost of n
Slide 16: Organizational Structure, Management Team & Board of Directors
ORGANIZATIONAL STRUCTURE, MANAGEMENT TEAM & BOARD OF DIRECTORS 16
Slide 17: State/UT wise Branches
State/UT wise Branches Urban Semi-urban Rural Total State/UT wise Branches Urban Semi-urban Rural Total Andaman and Nicobar Islands - 1 - 1 Manipur - 1 - 1 Andhra Pradesh 30 116 160 306 Meghalaya - 1 - 1 Assam 3 10 18 31 Odisha 2 22 31 55 Puducherry 3 5 6 14 Bihar 18 39 36 93 Punjab 9 36 27 72 Chand
Slide 18: Professional Management Team with Vast Industry Experience
Professional Management Team with Vast Industry Experience • Joined as an Executive Trainee in 1987. He has been associated with Shriram Group for over 37 years and has Umesh Revankar shouldered various responsibilities and worked in several key roles of business operations. Executive Vice- • Holds
Slide 19: Professional Management Team with Vast Industry Experience
Professional Management Team with Vast Industry Experience • Commerce Graduate, a Fellow of Cost and Management Accountants of India. R. Chandrasekar • Has been serving the Shriram Group for more than three decades in the areas of Finance, Accounts and other back office functions. CCO and Joint Mana
Slide 20: Board of Directors
Board of Directors • Holds M.A. (Economics) from Delhi School of Economics and Post Graduate in Economics from Boston University, USA Jugal Kishore • Holds Degree of Doctor of Philosophy in Business Management from XIM University Mohapatra • IAS, Odisha Cadre, Currently, non-executive Chairman of In
Slide 21: Board of Directors
Board of Directors • Joined in 2024 • Holds degree in B.Sc, M.Sc. in Agriculture from University of Tamil Nadu and Bachelor of Law from University of Delhi. Mrs. M. V. Bhanumathi • Retired as the Director General of Income Tax – Investigation, Mumbai region, Income Tax Department in May 2022. Indepe
Slide 22: Board of Directors
Board of Directors • Serving as Managing Director and CEO of the Company. He is a Commerce graduate from Andhra University Y. S. Chakravarti • Started his career in Shriram Chits Pvt. Ltd., Andhra Pradesh in June 1991 as an executive trainee, and rose to the Managing Director position of Chief Execu
Slide 23: Board of Directors
Board of Directors • Joined CV Finance business of Shriram Group in 1992 as Head of Investment Servicing. • Currently serves as Managing Director of Shriram Capital Private Limited. D V Ravi • Spearheaded several successful M&A’s for TAKE Solutions Ltd. Director • Started his career in Strategy and
Slide 24: Shriram One App Summary
Shriram One App Summary Strategic Digital Metrics for FY24-FY25 Particulars Unit Q3 FY25 Q2 FY25 Q3 FY24 App downloads - Cumulative in mn 10.70 8.20 0.80 App Net installs - Cumulative in mn 8.00 5.80 0.10 In-App modules – Cumulative # 149 145 131 Non Shriram Customers Installing the app - Cummulativ
Slide 25: Performance Track Record
* SHRIRAM Finance PERFORMANCE TRACK RECORD
Slide 26: Strong Financial Track Record
Strong Financial Track Record P&L Metrics (Rs. mn) FY24* FY23* FY22 FY21 FY20 FY19 Interes t Income (Incl . Securi ti za ti on) 346,524.6 296,396.0 191,806.2 173,346.6 164,773.1 154,441.4 Les s : Interes t Expens es 149,656.1 126,766.0 98,645.6 91,675.6 83,703.3 76,366.0 Net Interest Income 196,868.
Slide 27: Strong Financial Track Record
Strong Financial Track Record Balance Sheet Metrics (Rs. mn) FY24* FY23* FY22 FY21 FY20 FY19 - On Books 2,216,676.6 1,833,384.2 1,256,990.3 1,161,916.0 1,085,017.1 8,50,847.3 - Off Books 31,943.2 23,444.4 13,418.3 10,512.3 12,475.3 1,93,975.6 Total AUM 2,248,619.8 1,856,828.6 1,270,408.6 1,172,428.3
Slide 28: Healthy Asset Quality (as per IndAS)
Healthy Asset Quality (as per IndAS) Particulars (Rs. mn) FY24* FY23* FY22 FY21 FY20 FY19 Gross Stage 3 120,811.5 113,821.8 88,875.5 82,952.1 91,797.1 86,222.7 ECL provision-Stage 3 62,567.1 57,073.2 44,415.0 34,885.3 31,886.5 29,670.0 Net Stage 3 58,244.4 56,748.6 44,460.5 48,066.8 59,910.6 56,552.
Slide 29: Access to Low Cost Funds
Access to Low Cost Funds Mar'24@ Mar'23@ Mar'22 Mar'21 Mar'20 Product Amt in bn % Amt in bn % Amt in bn % Amt in bn % Amt in bn % Commercial Paper 23.7 1.28% - - - - - - - - Non-Convertible Debentures 316.3 17.02% 302.4 19.15% 213.5 18.65% 213.9 20.14% 204.6 21.67% Public Deposit 444.4 23.92% 361.4
Slide 30: Well-Capitalized Balance Sheet
Well-Capitalized Balance Sheet Capital Adequacy Ratio at 20.30% (Tier I – 19.55%, Tier II – 0.75%) as on March 31, 2024 vs 15% mandated by RBI Networth (Rs. mn) CRAR (%) Book Value (Rs.) 22.61% 22.97% 22.50% 20.27% 1,292.42 20.30% 21.99% 1,156.61 958.61 852.30 793.59 697.99 4,84,638 4,32,021 2,59,
Slide 31: Credit rating as on December 31, 2024
Credit rating as on December 31, 2024 Credit Rating Agency Instruments Ratings as on 31.12.2024 CARE Commercial Paper CARE A1+ CARE Non-convertible debentures CARE AA+/Stable CARE Subordinate debt CARE AA+/Stable CRISIL Bank Loan Long-term CRISIL AA+/Stable CRISIL Bank Loan Short-term CRISIL A1+ CRI
Slide 32: Shareholding Pattern as on December 31, 2024 vs December 31, 2023
Shareholding Pattern as on December 31, 2024 vs December 31, 2023 No. of shares outstanding: 376.1 mn No. of shares outstanding: 375.6 mn Other Public 5.36% Public , Other Corporate 4.61% Promoter Corporat Body , s& Promoters e Body , 0.38% Promoter & 0.80% Promoters s group*, MF/Bank/I group*, 25.4
Slide 33: List of Key Shareholders as on December 31, 2024
List of Key Shareholders as on December 31, 2024 Key Shareholders Current Shareholding % (mn Shares) Promoter and Promoter Group Shriram Capital Private Limited (Formerly known as Shriram 67.1 17.86 Financial Ventures (Chennai) Private Limited) Shriram Value Services Limited 26.8 7.11 Shriram Owners
Slide 34: Consistent track record has attracted institutional and private equity investors
Consistent track record and high growth potential has attracted reputed institutional and private equity investors to infuse growth capital Details of last Equity fund raising : 1. On November 25, 2021, allotted 1.736 mn equity shares of face value of Rs. 10/- each aggregating to Rs. 2.5 bn to S
Slide 35: Recent Performance
Ke SHRIRAM Finance RECENT PERFORMANCE
Slide 36: Company Updates
Company Updates The Board of Directors of the Company in its meeting held on May 13, 2024 had approved the proposal for disinvestment of the Company’s entire stake in Shriram Housing Finance Limited (‘SHFL’) now renamed as Truhome Finance Limited, a debt-listed non-material subsidiary of the Compa
Slide 37: Performance Highlights – Q3 FY25 vs Q3 FY24
Performance Highlights – Q3 FY25 vs Q3 FY24 Q3 FY25 Rs. 107,054.7 mn Total Income 19.92 % Q3 FY24 Rs. 89,273.0 mn Q3 FY25 Rs 58,226.9 mn Net Interest Income*** 14.31 % Q3 FY24 Rs. 50,939.3 mn ***including Net Direct assignment Income Rs. 263.4 mn (Q3 FY24 Rs. 731.2 mn) Q3 FY25 Rs 35,697.6 mn PAT(inc
Slide 38: Performance Highlights – 9M FY25 vs 9M FY24
Performance Highlights – 9M FY25 vs 9M FY24 9M FY25 Rs. 303,992.2 mn Total Income 19.21 % 9M FY24 Rs. 254,997.6 mn 9M FY25 Rs 167,839.0 mn Net Interest Income*** 16.95 % 9M FY24 Rs. 143,507.9 mn ***including Net Direct assignment Income Rs. 1,023.9 mn (9M FY24 Rs. 2,532.2 mn) 9M FY25 Rs 76,216.1 mn
Slide 39: Performance Highlights – Q3 FY25 vs Q3 FY24
Performance Highlights – Q3 FY25 vs Q3 FY24 Q3 FY25 Rs. 2,544,696.9 mn AUM 18.78 % Q3 FY24 Rs 2,142,334.7 mn Q3 FY25 Rs 135,211.8 mn Gross Stage 3 Assets 13.13 % Q3 FY24 Rs 119,522.6 mn Q3 FY25 Rs 65,393.4 mn Net Stage 3 Assets 17.34 % Q3 FY24 Rs 55,730.1 mn Q3 FY25 Rs. 292.47 Book Value** 16.73 % Q
Slide 40: AUM Break-up
AUM Break-up Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Loan Portfolio - On Books Balance sheet assets 2,136,048.5 2,068,058.4 2,026,948.8 1,876,421.2 13.84% 3.29% 1,942,207.2 Securitised assets 375,629.5 330,166.9 275,513.2 234,140.5 60.43% 13.77% 274,469.4 Total On b
Slide 41: Segment-wise AUM Break-up
Segment-wise AUM Break-up Product Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 (Rs. mn) Amt % Amt % Amt % Amt % Amt % Commercial Vehicles 1,157,668.5 45.49% 1,121,940.6 46.16% 1,096,791.8 46.98% 1,024,651.2 47.83% 12.98% 3.18% 1,069,351.1 47.56% Passenger Vehicles 518,838.9 20.39% 490,003.2
Slide 42: Branch & AUM distribution – Q3 FY25 vs Q3 FY24
Branch & AUM distribution – Q3 FY25 vs Q3 FY24 Branch (Nos) Urban, AUM (Rs in bn) Urban, Rural, Rural, 382.79 1,286.61 435 1,707 Q3 FY25 Q3 FY25 Semi- Semi- Urban, Urban, 875.30 1,054 Total AUM Rural, Total Branch 3,196 Rs 2,544.7 bn 1,065.8 Urban, Rural, 401 1,598 Urban, 314.6 Q3 FY24 Q3 FY24 Semi-
Slide 43: Provision Analysis
Provision Analysis Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 135,211.8 127,642.4 124,077.5 119,522.6 13.13% 5.93% 120,811.5 ECL provision-Stage 3 69,818.4 65,986.0 63,459.6 63,792.6 9.45% 5.81% 62,567.1 Net Stage 3 65,393.4 61,656.4 60,617.9 55,730.0 17.
Slide 44: Product wise Provision Analysis – December’24
Product wise Provision Analysis – December’24 Commercial Passenger Construction Farm Personal Particulars (Rs. mn) Total Vehicles Vehicles Equipment Equipment MSME Two Wheeler Gold Loan Loans Gross Stage 3 67,438.4 25,931.4 11,580.8 4,102.9 16,241.6 4,867.9 1,119.0 3,929.8 135,211.8 ECL provision-St
Slide 45: Commercial Vehicles
Commercial Vehicles Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 67,438.4 64,134.4 63,346.9 61,940.6 8.88% 5.15% 62,188.4 ECL provision-Stage 3 35,412.0 34,000.9 33,185.8 33,381.1 6.08% 4.15% 32,627.5 Net Stage 3 32,026.4 30,133.6 30,161.1 28,559.5 12.14% 6
Slide 46: Passenger Vehicles
Passenger Vehicles Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 25,931.4 24,957.3 23,791.2 22,013.4 17.80% 3.90% 22,573.7 ECL provision-Stage 3 12,743.2 12,149.4 11,458.9 11,255.3 13.22% 4.89% 11,204.8 Net Stage 3 13,188.2 12,807.9 12,332.3 10,758.1 22.59%
Slide 47: Construction Equipments
Construction Equipments Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 11,580.8 11,022.4 10,492.7 10,619.1 9.06% 5.07% 10,595.0 ECL provision-Stage 3 5,818.5 5,527.1 5,169.6 5,558.4 4.68% 5.27% 5,450.3 Net Stage 3 5,762.3 5,495.4 5,323.1 5,060.7 13.86% 4.86%
Slide 48: Farm Equipments
Farm Equipments Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 4,102.9 3,887.7 3,475.4 3,182.2 28.93% 5.53% 3,207.0 ECL provision-Stage 3 1,810.8 1,691.5 1,503.0 1,440.4 25.72% 7.05% 1,379.1 Net Stage 3 2,292.1 2,196.3 1,972.3 1,741.8 31.59% 4.36% 1,827.9 Gro
Slide 49: MSME
MSME Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 16,241.6 14,737.7 13,725.6 11,792.8 37.73% 10.20% 12,690.5 ECL provision-Stage 3 9,408.9 8,450.1 7,872.7 7,328.6 28.39% 11.35% 7,295.2 Net Stage 3 6,832.8 6,287.6 5,852.9 4,464.2 53.06% 8.67% 5,395.2 Gross S
Slide 50: Two Wheelers
Two Wheelers Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 4,867.9 4,037.6 3,995.6 4,046.1 20.31% 20.56% 3,949.9 ECL provision-Stage 3 2,314.5 1,957.8 1,945.3 2,278.0 1.60% 18.22% 2,122.3 Net Stage 3 2,553.4 2,079.8 2,050.3 1,768.1 44.42% 22.77% 1,827.6 Gros
Slide 51: Gold
Gold Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 1,119.0 1,185.8 1,189.5 1,127.8 -0.78% -5.64% 1,213.9 ECL provision-Stage 3 114.6 97.6 88.5 91.4 25.38% 17.36% 105.6 Net Stage 3 1,004.4 1,088.2 1,101.1 1,036.4 -3.09% -7.70% 1,108.3 Gross Stage 3 (%) 2.04%
Slide 52: Personal Loans
Personal Loans Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) FY24 Gross Stage 3 3,929.8 3,679.4 4,060.7 4,800.7 -18.14% 6.81% 4,393.1 ECL provision-Stage 3 2,195.9 2,111.7 2,235.7 2,459.5 -10.72% 3.99% 2,382.3 Net Stage 3 1,733.8 1,567.7 1,825.0 2,341.2 -25.94% 10.60% 2,010.7
Slide 53: P&L Statement
P&L Statement Particulars (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) 9M FY25 9M FY24 YoY (%) FY24 Interest income 106,031.40 100,047.7 95,210.1 88,438.7 19.89% 5.98% 301,289.2 252,810.5 19.18% 346,524.6 Interest expended 47,804.50 43,980.3 41,665.4 37,499.4 27.48% 8.70% 133,450.2 109,3
Slide 54: Summarised Balance Sheet
Summarised Balance Sheet Particulars (Rs. mn) Dec-24 Sep-24 Jun-24 Dec-23 YoY(%) QoQ (%) Mar-24 I. Assets Financial Assets a) Cash and bank balances 257,490.2 171,542.1 108,294.1 126,028.7 104.31% 50.10% 108,126.4 b) Loans 2,351,142.5 2,246,547.3 2,158,220.0 1,978,955.9 18.81% 4.66% 2,079,294.1 c) I
Slide 55: Key Metrics – Q3 FY25
Key Metrics – Q3 FY25 P&L Metrics (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) 9M FY25 9M FY24 YoY (%) FY24 Interest Income 106,031.4 100,047.7 95,210.1 88,438.7 19.89% 5.98% 301,289.2 252,810.5 19.18% 346,524.6 Less: Interest Expenses 47,804.5 43,980.3 41,665.4 37,499.4 27.48% 8.70% 133
Slide 56: Key Metrics – Q3 FY25 (Contd.)
Key Metrics – Q3 FY25 (Contd.) Balance Sheet Metrics (Rs. mn) Q3 FY25 Q2 FY25 Q1 FY25 Q3 FY24 YoY (%) QoQ (%) 9M FY25 9M FY24 YoY (%) FY24 Networth 550,392.2 522,953.6 507,864.4 472,303.5 16.53% 5.25% 550,392.2 472,303.5 16.53% 488,032.2 Book Value (Rs.)* 292.47 277.32 269.00 250.56 16.73% 5.46% 292
Slide 57: Borrowing Profile
Borrowing Profile Q2 FY25 Q2 FY25 Q3 FY24 Q4 FY24 Product Amt in bn % Amt in bn % Amt in bn % Amt in bn % Commercial Paper 12.9 0.58% 34.3 1.65% 24.6 1.39% 23.7 1.28% Non-Convertible Debentures 373.2 16.70% 372.7 17.93% 309.5 17.44% 316.3 17.02% Public Deposit 533.6 23.88% 502.0 24.15% 431.2 24.30%
Slide 58: ALM Statement as on December 31, 2024
ALM Statement as on December 31, 2024 Over one Over 2 Over 3 Over 6 Over one Over 3 to Particulars (Rs. mn) One month month to 2 months to months to months to year to 3 Over 5 years Total 5 years months 3 months 6 months one year years Total Outflows 65,530.00 34,176.60 74,219.60 149,803.40 311,989.
Slide 59: Shriram Automall India Limited (SAMIL)
Associate Shriram Automall India Limited (SAMIL) 59
Slide 60: Associate
Associate Shriram Automall India Limited (SAMIL), an ISO 9001:2015 certified company, is India's Largest Phygital Pre-owned Marketplace connecting pre-owned vehicles and equipment buyers and sellers. SAMIL began its journey in 2011 by setting up India's first professionally managed and organized
Slide 61: About Us
About Us About Shriram Finance Ltd. Shriram Finance Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Housing Finance, Stock Broking and Distribution businesses. Shriram Finance Limited is one of India’s larges
Slide 62: For any Investor Relations queries please contact
Contact Us For any Investor Relations queries please contact Sanjay K. Mundra Shriram Finance Limited Email: smundra@shriramfinance.in Tel. No. +91-22-4095 9507 62
Slide 63: Thank You
Thank You 63