Shriram Housing Finance: Q4 PAT Jumps 67% YoY

A prominent provider of financing for affordable housing, the company revealed its results for Q4FY24, the last fiscal quarter, showing a 67 per cent increase in profit after tax (PAT) to Rs 62.1 crore. In the same quarter, the company's assets under management (AUM) increased to Rs 13,762 crore.

The quarter's disbursals increased 77 per cent year over year to Rs 2,302 crore, and the previous fiscal year's total disbursals came to Rs 7,591 crore. With Gross Stage-3 assets at 1.03 per cent, a 2 bps increase from quarter to quarter, and a 10 bps increase from year to year, asset quality has also improved.

The same quarter saw a 108 bps year-over-year increase in net interest margin (NIM) to 7.6 per cent. The PAT increased by 58 per cent year over year to Rs 217.4 crore for the entire fiscal year.

With a compound annual growth rate (CAGR) of 56 per cent over the last four years, total AUM has increased by 3.5 times over the last three years. In the most recent quarter, the company also raised Rs 400 crore in capital.

Widening the reach of the distribution system

The company is still making investments to spread its distribution network throughout the major states. As of March 2024, there were 155 branches nationwide. The company is still a major force in the markets of Tamil Nadu, Gujarat, Karnataka, Maharashtra, and Delhi, and it hopes to take the lead in a few other areas as well.

Ravi Subramanian, MD & CEO of Shriram Housing Finance, commented on the outcomes, saying, "We are thrilled to announce a remarkable PAT growth of 58 per cent yoy in the past fiscal year, despite having seen a high-interest rate scenario."

Over the last three years, total AUM has increased fourfold at a CAGR of 56 per cent. We have enough capital cushion to support business growth and are continuously entering new markets.

Since the demand for affordable housing will come from the rural and semi-urban markets, we are very optimistic about the growth prospects. It is anticipated that the momentum for home loan growth will continue to be robust in the medium term.