NBFC major Shriram Finance reported its Q4 results on April 25, posting a consolidated net profit of ₹2,139.4 crore, slightly below CNBC-TV18’s estimate of ₹2,142.9 crore. However, this marked a 9.9% growth year-on-year.

Net interest income (NII) also missed the Street’s projection of ₹5,878.1 crore, but rose 9.4% YoY to ₹5,565.5 crore.

Asset quality saw a sequential improvement, with gross non-performing asset (NPA) ratio reducing to 4.55% from 5.38% in Q3, and net NPA declining marginally to 2.64% from 2.68%.
However, the provision coverage ratio fell to 43.28% from 51.64% in the previous quarter, suggesting a lower buffer against potential credit losses.

Also read: Atul Q4 results: Shares rise after profit more than doubles, ₹25 dividend declared

The company has recommended a final dividend of ₹3 per share for FY25, subject to shareholder approval at its upcoming 46th AGM.

Despite the profit and NII growth, the miss on estimates appears to have weighed on investor sentiment. Post results, shares of the NBFC giant fell over 8.8%, hitting a new day’s low of ₹635.95 from the previous close. The stock paired some losses to end 6% lower at ₹655.65 on the BSE.