Shriram Finance Limited, one of India’s leading financial services companies, announced its fourth-quarter results for FY25, posting a consolidated net profit of ?2,144 crore, reflecting a 6.7% year-on-year growth. This steady rise highlights the company's resilient business model and its strategic focus on expanding in rural and semi-urban markets.
In a move that underscores its consistent financial performance and dedication to rewarding shareholders, the board has declared a dividend of ?3 per share.
Key Financial Highlights (Q4 FY25):
Net Profit: ?2,144 crore, up 6.7% YoY
Dividend: ?3 per share declared
Asset Quality: Significant improvement with lower non-performing assets (NPAs)
Growth Driven by Strong Disbursements and Improved Asset Quality
Shriram Finance’s Q4 performance was powered by higher disbursements, particularly in the commercial vehicle and two-wheeler financing segments. The company’s strategic penetration into rural and semi-urban areas has not only increased its customer base but also contributed to stable revenue streams.
Another major highlight this quarter is the improvement in asset quality. By reducing the levels of non-performing assets (NPAs), Shriram Finance has strengthened its financial foundation, reflecting effective credit risk management and prudent lending practices.
Dividend Announcement Reflects Stability
The declaration of a ?3 per share dividend showcases the company's solid cash flows and reinforces its commitment to delivering consistent returns to shareholders. It signals a strong balance sheet and sustained profitability, even amid dynamic market conditions.
Outlook: Positioned for Continued Growth
Looking ahead, Shriram Finance is well-positioned to maintain its growth momentum with its focus on underserved markets, digital innovation, and customer-centric strategies. Its improved asset quality and strong distribution network are expected to drive further expansion in FY26.
For investors, Shriram Finance offers an attractive combination of steady earnings, improving asset health, and regular dividend payouts, making it a noteworthy stock to watch.
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