Podcast
Questions and Answers
What is the anticipated AUM growth guidance for FY'25?
What is the anticipated AUM growth guidance for FY'25?
- 12%
- 10%
- 20%
- 15% (correct)
What factor did not negatively impact credit uptake despite expectations?
What factor did not negatively impact credit uptake despite expectations?
- Interest rate fluctuations
- Global market changes
- Election activity (correct)
- Economic recession
What is being added to enhance gold lending?
What is being added to enhance gold lending?
- More branches (correct)
- Lower interest rates
- New technology for loan processing
- Online application processes
How has the overall credit uptake been characterized despite projected slowdown?
How has the overall credit uptake been characterized despite projected slowdown?
What specific area did Natraj Shankar inquire about regarding risk management?
What specific area did Natraj Shankar inquire about regarding risk management?
What does Umesh Revankar suggest about future performance compared to the guidance?
What does Umesh Revankar suggest about future performance compared to the guidance?
What was the primary reason for not changing the guidance despite fluctuations?
What was the primary reason for not changing the guidance despite fluctuations?
What aspect of leadership growth did Natraj Shankar seek clarification on?
What aspect of leadership growth did Natraj Shankar seek clarification on?
What percentage of corporate channel business comes from the broker channel?
What percentage of corporate channel business comes from the broker channel?
What is the average tenure of the deposits mentioned?
What is the average tenure of the deposits mentioned?
What is the expected interest cost for the deposits?
What is the expected interest cost for the deposits?
How many branches were covered for MSME earlier before adding new ones?
How many branches were covered for MSME earlier before adding new ones?
Out of the total branches, how many branches were added for MSME in two years?
Out of the total branches, how many branches were added for MSME in two years?
What is the target number of branches to be added for MSME over the next two years?
What is the target number of branches to be added for MSME over the next two years?
What is the total number of branches projected to conduct MSME after the new additions?
What is the total number of branches projected to conduct MSME after the new additions?
What is the overall cost expressed in basis points?
What is the overall cost expressed in basis points?
What was the provision amount for the current quarter?
What was the provision amount for the current quarter?
Which loan type has the shortest average maturity period?
Which loan type has the shortest average maturity period?
What is the primary focus mentioned regarding the company's growth strategy?
What is the primary focus mentioned regarding the company's growth strategy?
Which factor was highlighted as important in influencing bottom line growth?
Which factor was highlighted as important in influencing bottom line growth?
What might negatively impact the expected growth in Q2 and Q3?
What might negatively impact the expected growth in Q2 and Q3?
What does the company plan to do with smaller ticket loans?
What does the company plan to do with smaller ticket loans?
What is suggested about the relationship between AUM growth and bottom line growth?
What is suggested about the relationship between AUM growth and bottom line growth?
Who is the Company Secretary & Compliance Officer of Shriram Finance Limited?
Who is the Company Secretary & Compliance Officer of Shriram Finance Limited?
How long is the average maturity for personal loans mentioned?
How long is the average maturity for personal loans mentioned?
On what date was the earnings conference call held?
On what date was the earnings conference call held?
Which management position is held by Mr. Parag Sharma?
Which management position is held by Mr. Parag Sharma?
What is the NSE symbol for Shriram Finance Limited?
What is the NSE symbol for Shriram Finance Limited?
What does 'listen-only mode' imply for participants during the earnings conference call?
What does 'listen-only mode' imply for participants during the earnings conference call?
What is included as an enclosure with the letter to BSE and NSE?
What is included as an enclosure with the letter to BSE and NSE?
Which of the following titles does NOT appear in the management list?
Which of the following titles does NOT appear in the management list?
What should participants do if they need assistance during the conference call?
What should participants do if they need assistance during the conference call?
What aspect of the financial profile is considered strongest?
What aspect of the financial profile is considered strongest?
What is the percentage of the capital position mentioned?
What is the percentage of the capital position mentioned?
What is the primary reason rating agencies are waiting for additional information?
What is the primary reason rating agencies are waiting for additional information?
How do rating agencies typically favor companies during their assessments?
How do rating agencies typically favor companies during their assessments?
Which financial result was congratulated during the dialogue?
Which financial result was congratulated during the dialogue?
What is one factor that is often not directly discussed with rating agencies?
What is one factor that is often not directly discussed with rating agencies?
What was the sentiment towards the macroeconomic situation discussed?
What was the sentiment towards the macroeconomic situation discussed?
What can be inferred about the relationship between rating agencies and the business?
What can be inferred about the relationship between rating agencies and the business?
What are the factors contributing to the improvement in GS3 and GS2 according to Umesh Revankar?
What are the factors contributing to the improvement in GS3 and GS2 according to Umesh Revankar?
Why is it difficult to compare the ECL number with a seized vehicle?
Why is it difficult to compare the ECL number with a seized vehicle?
What does the abbreviation GS3 refer to in this context?
What does the abbreviation GS3 refer to in this context?
According to the discussion, what was one of the major causes for lesser disturbance during the elections?
According to the discussion, what was one of the major causes for lesser disturbance during the elections?
How has the vehicle recovery process improved according to the participants?
How has the vehicle recovery process improved according to the participants?
What impact did the state level elections have on business as discussed?
What impact did the state level elections have on business as discussed?
What is the relationship between cash flows of operators and recovery efforts?
What is the relationship between cash flows of operators and recovery efforts?
What does the acronym ECL stand for in the conversation?
What does the acronym ECL stand for in the conversation?
Flashcards
Earnings Conference Call
Earnings Conference Call
A formal meeting where a company's management discusses its financial performance with analysts, investors, and the media.
Quarter
Quarter
The period of time for which a company's financial performance is measured. For example, the first quarter ended June 30, 2024.
Transcript
Transcript
An official document that summarizes a company's financial performance for a specific period.
Letter
Letter
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Scrip Code
Scrip Code
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Disclosure
Disclosure
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Securities Exchange Commission (SEC)
Securities Exchange Commission (SEC)
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National Stock Exchange of India Limited (NSE)
National Stock Exchange of India Limited (NSE)
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AUM (Assets Under Management)
AUM (Assets Under Management)
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What is AUM?
What is AUM?
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Bottom Line
Bottom Line
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What are Disbursements?
What are Disbursements?
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Improving Product Mix
Improving Product Mix
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What is Gold Lending?
What is Gold Lending?
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Small Ticket Loans
Small Ticket Loans
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What is MSME?
What is MSME?
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AUM Growth
AUM Growth
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What is Risk Management?
What is Risk Management?
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Bottom Line Growth
Bottom Line Growth
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What is Growth?
What is Growth?
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Business Momentum
Business Momentum
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What is Leadership?
What is Leadership?
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What is Business Quality?
What is Business Quality?
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Credit Rating
Credit Rating
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Capital Position
Capital Position
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Merger
Merger
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Financial Year
Financial Year
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Credit Risk
Credit Risk
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Expected Credit Loss (ECL)
Expected Credit Loss (ECL)
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Integration
Integration
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Macroeconomic Environment
Macroeconomic Environment
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Cost of Deposit
Cost of Deposit
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Average Deposit Tenure
Average Deposit Tenure
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Weighted Average Interest Cost
Weighted Average Interest Cost
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MSME Product
MSME Product
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Branches Offering MSME Product
Branches Offering MSME Product
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Target MSME Branch Expansion
Target MSME Branch Expansion
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Broker Channel
Broker Channel
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Broker Channel Contribution
Broker Channel Contribution
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What is the meaning of ECL (Expected Credit Loss)?
What is the meaning of ECL (Expected Credit Loss)?
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What is LDD (Loss Given Default)?
What is LDD (Loss Given Default)?
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Why is the ECL sometimes higher than the LDD on seized vehicles?
Why is the ECL sometimes higher than the LDD on seized vehicles?
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What is 'election disruption' in the context of the conversation?
What is 'election disruption' in the context of the conversation?
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What does 'asset quality' refer to?
What does 'asset quality' refer to?
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What are 'recovery efforts' in this context?
What are 'recovery efforts' in this context?
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What are 'slippages' in finance?
What are 'slippages' in finance?
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What does 'GS2' and 'GS3' refer to in the context of the conversation?
What does 'GS2' and 'GS3' refer to in the context of the conversation?
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Study Notes
Shriram Finance Limited Q1 FY25 Earnings Conference Call
- Date: July 26, 2024
- Key Management Personnel (KMP):
- Umesh G Revankar, Executive Vice Chairman
- Y S Chakravarti, Managing Director and CEO
- Parag Sharma, Managing Director & CFO
- S. Sunder, Joint Managing Director
- Ravi Subramanian, Managing Director and CEO, SHFL
- Sanjay Kumar Mundra, Executive Director
Financial Highlights
- GDP Growth: India's GDP growth rate for FY24 was 8.2% compared to 7% in FY23. Q1 FY25 estimates are at 7.2%
- Inflation:
- CPI Inflation (June 2024): 5.08.
- WPI Inflation (June 2024): 3.36%; highest in 16 months
- RBI Monetary Policy: Repo rate was maintained at 6.5%.
- Monsoon Outlook: IMD forecasts 106% of the long-period average rainfall during June-September. Significant rainfall is predicted for the coming 10 days, especially in the Southern Peninsula.
Business Performance
- Disbursement Growth:
- Q1 FY'25: INR 37,709.79 crores (23.82% YoY growth)
- Q1 FY'24: INR 30,454.81 crores
- Asset Under Management (AUM):
- Q1 FY'25: INR 2,33,443.63 crores (20.82% YoY growth)
- Q4 FY'24: INR 2,24,861.98 crores
- Net Interest Income (NII):
- Q1 FY'25: INR 5,354.47 crores (20.63% YoY growth)
- Q1 FY'24: INR 4,438.68 crores
- Profit After Tax (PAT):
- Q1 FY'25: INR 1,980.59 crores (18.21% YoY growth)
- Q1 FY'24: INR 1,675.44 crores
- Earnings Per Share (EPS):
- Q1 FY'25: INR 52.70
- Q1 FY'24: INR 44.73
- Credit Cost:
- Q1 FY'25: 1.87%
- Q1 FY'24: 1.62%
Specific Business Segments
- Auto Industry:
- Commercial Vehicles (CVs) sales: 2.24 Lakh units (3.5% growth) vs 2.17 Lakh previous year.
- MSME segment: significant growth.
Additional Information
- Auto Finance: Robust sales of passenger vehicles and two-wheelers.
- Msme: major portion of loan given in service sector and trading.
- Gold Loans: Disbursements have been impacted by adjustments in processes, and recent sales have been lower, impacting AUM. Higher gold prices haven't led to increased lending volumes.
- Strategic Initiatives:
- Share sale of Shriram Housing Finance to Mango Crush Investment Limited.
- Employee count:
- 30th June 2024: INR 75,813
- March 2024: INR 74,645
- Cost of Funds: Stable at around 8.8%
- Credit Risk: Improvement in asset quality, however stage one provisions have increased.
- Securitization details: A significant part of this is in retail deposits, with capital market instruments, and external commercial borrowings (ECB).
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Description
This quiz explores various aspects of financial growth and credit uptake in the context of anticipated growth for FY'25 and leadership inquiries on risk management. Test your knowledge on corporate channels, deposit trends, and MSME branch expansions based on recent discussions and projections.
