Shriram Finance's Q3 Profit Dips Despite Nim Growth

Shriram Finance reported a 22% decline in Q3 net profit to Rs 2,530 crore amid strategic shifts and growth in net interest income. The company plans to expand its commercial vehicle and gold loans segments while maintaining a strong net interest margin. No acquisitions are planned despite funding infusion.

Shriram Finance's fortunes shifted in the last quarter, with the non-bank lender reporting a 22% drop in net profit to Rs 2,530 crore. This comes despite strategic efforts to bolster net interest income and asset management growth.

The firm is adjusting focus toward enhancing its commercial vehicle sector involvement, planning to double the new CV portion of the AUM within two years. Additionally, pushing its gold loan business from 2% to 5% of the AUM further demonstrates Shriram's adaptive strategy.

Despite receiving a hefty Rs 39,000 crore fund from Japan's MUFG, Shriram Finance's Managing Director Parag Sharma confirmed there are no immediate acquisition plans. The firm's share price marginally dipped 0.29% closing at Rs 1,003.45 on the BSE, reflecting a cautious market outlook.