Shriram Finance ‘s Q2 Update: Profit Grows by 20.17% YoY

The comprehensive analytics outlining the performance and outlook of Shriram Finance Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Shriram Finance Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 13.57 %. However, it did see a marginal increase of 5.04 % from the previous quarter. Expenses ticked up slightly by 6.58 % quarter-on-quarter, aligning with the annual rise of 11.24 %. Operating profit, while up 14.51 % compared to last year, faced a quarter-on-quarter increase of 4.46 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 0.59 %, but a shrinkage of -0.41 % sequentially. Other income rose by 50.95 % compared to the last quarter, despite an annual decline of -22.64 %. Interest expenses surged remarkably by 5.36 % from the previous quarter, yet the year-over-year increase remains at a moderate 14.54 %. Depreciation costs climbed by 3.51 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 12.36 %. Profit before tax grew annually by 14.45 % but saw an increase from the preceding quarter by 3.19 %.
Tax expenses as a percentage of profits decreased slightly by -0.86 % compared to last year, with a more notable quarter-on-quarter decrease of -1.01 %. Net profit rose by 20.17 % year-on-year but experienced a 6.04 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 19.81 % but a quarterly rise of 5.81 %. In summary, Shriram Finance Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Shriram Finance Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 13.57 % year-on-year growth, however, there was a minor increase of 5.04 % from the previous quarter. Expenses rose by 11.24 % compared to the previous year, with a 6.58 % increase quarter-on-quarter. Operating Profit surged by 14.51 % annually, and saw a 4.46 % increase from the last quarter.
Net Profit showed yearly increase of 20.17 %, and experienced a 6.04 % increase from the previous quarter. Earnings Per Share (EPS) rose by 19.81 % annually, however rose by 5.81 % compared to the last quarter. In essence, while Shriram Finance Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.