Disbursements Rose by 82% YoY to INR 8,726 Cr
PAT up 60.9% to INR 354 Cr
Mumbai, July 27, 2022: Shriram City Union Finance Ltd. (Shriram City), a leading financier to
Small Business Enterprises and India’s largest two-wheeler financer (based on number of 2W
financed) and part of the Shriram Group announced the financial results for Q1FY23 today. On
a consolidated basis, the company’s disbursements rose by 82% YoY to INR 8,726 Cr, backed
by a strong revival for Micro, Small and Medium Enterprises (MSME), gold and 2-wheeler loans.
Assets Under Management (AUM) of INR 40,414 Cr, increased by 21% YoY and Consolidated
Profit After Tax rose by 60.9% to INR 354 Cr in Q1FY23. The consolidated results include
Shriram City and Shriram Housing Finance Limited. Shriram City posted the highest ever
consolidated profitability at INR 303 Cr.
On a Standalone Basis: Shriram City reported its best quarterly disbursements of INR 7,931
Cr, up 73.9% YoY, while AUM rose by 16.9% YoY to INR 34,611 Cr. PAT rose to a record INR
323 Cr in Q1FY23. Asset quality improved with Gross NPAs declining 20 bps QoQ to 6.11% in
Q1FY23 (6.31%: Q4FY22). The company has a liquidity backup worth INR 6,600 Cr as of the
Segment Break-up: MSME, 2-wheeler and Personal loan disbursements grew at the fastest
pace driving overall growth. MSME loans contributed 43% of the total AUM and disbursements
almost doubled to INR 2,044 cr in Q1FY23. The company, the largest Two-Wheeler (2W)
financer has witnessed strong loan disbursements from rural India. The Company has
expanded its Gold loans business in the northern region helping it capture market share there.
Personal Loans to credit-tested Shriram customers have led to higher disbursement in PL.
Shriram Housing Finance Ltd, a subsidiary of Shriram City and a leading affordable home
financier had a strong Q1FY23. The company saw its AUM grow by 48% YoY to INR 5,803 Cr.
The growth has been driven by the robust disbursement run rate of over INR 750 Cr
consistently for the last 3 quarters, backed by widening the distribution network to 100+
branches and 211 touchpoints across the Shriram Group network so far, and rising demand for
affordable home finance. PAT was recorded at INR 30.2 Cr and grew by 37% QoQ and 178%
YoY. Shriram Housing Finance is among the top 5 affordable housing financers in India, with
the widest distribution network in South India.
Merger Update: The Company has received approvals for the merger of Shriram City with
Shriram Transport Finance from SEBI, BSE, NSE, shareholders, secured creditors and
unsecured creditors. The Company now awaits approvals from the Competition Commission of
India, Insurance Regulatory & Development Authority and National Company Law Tribunal. In
preparation to commence operations in the merged entity, Shriram City has launched the
business as a merged entity across 650+ branches and five geographical units. This endeavour
will be scaled up progressively.
Commenting on the financial results Mr Y.S. Chakravarti, MD & CEO, Shriram City said: “We
have had a stellar Q1 driven by rising demand for credit from rural and semi-urban markets
against the backdrop of a favourable macroeconomic environment. Across the financial
parameters, we have excelled – record disbursements, improved asset quality, higher margins,
credit cost moderated and ample liquidity buffers. The revival in the MSME ecosystem has
resulted in stronger demand for credit than the pre-pandemic levels. Our subsidiary, Shriram
Housing Finance’s AUM crossed INR 5,800 cr and is one of the top affordable housing
financers in India. Shriram Housing Finance has grown faster than the industry, coupled with
maintaining impeccable asset quality and its growth prospects ride on expanding its distribution
across the merged entities. The merger is progressing well and we are set to hit the ground
running as Shriram Finance before the close of this year.”