Shriram Finance Apr-24

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What was India's annual retail inflation rate in March compared to February?

Increased to 5.09%

Remained unchanged at 5.09%

Decreased to 3.80%

Decreased to 4.85% (correct)

What is the projected GDP growth rate for India in FY '25 according to RBI?

8.0%

7.0% (correct)

5.5%

6.0%

What percentage of long period average rainfall has the Indian IMD predicted for the monsoon in 2024?

110%

106% (correct)

100%

102%

What effect did monsoon predictions have on agricultural credit growth?

Increased by 20% Signup and view all the answers

Which aspect of consumer sentiment improved according to the RBI's survey?

Consumer confidence for the year ahead improved. Signup and view all the answers

What has contributed to the pickup in rural demand since Q2 FY '24?

Strong agricultural output Signup and view all the answers

How has the RBI responded to retail inflation rates in relation to the repo rate?

Unchanged at 6.5% for seven meetings Signup and view all the answers

What was the total amount written off for bad debts during the quarter?

Rs. 1,266 crores Signup and view all the answers

What has been the trend in capacity utilization levels recently?

Flat lined around 75% Signup and view all the answers

What percentage increase in used vehicle prices was observed in the last financial year?

25% Signup and view all the answers

What is the projected growth rate for the CV (Commercial Vehicle) portfolio over the next few years?

12% to 15% Signup and view all the answers

What is the margin that Umesh G. Revankar aims to maintain?

9% Signup and view all the answers

What primary factor is expected to slow credit demand in the first quarter?

Government election duties Signup and view all the answers

According to the information, why is the supply of used vehicles currently restricted?

Low sales of new vehicles in previous years Signup and view all the answers

How much growth did the CV segment actually achieve in the financial year?

14.6% Signup and view all the answers

What has been the asset under management (AUM) growth delivered this year?

21% Signup and view all the answers

What type of products does Umesh G. Revankar intend to focus on for growth?

High-yielding, granular products Signup and view all the answers

When are the new vehicles expected to be available in the market, impacting the supply of used vehicles?

4 to 5 years from now Signup and view all the answers

How much AUM growth is considered aspirational for the company?

15% Signup and view all the answers

What was the percentage increase in GST collection for March '24 compared to the previous year?

11.5% Signup and view all the answers

What factor is contributing to the strong prices of used vehicles?

Higher prices of new vehicles Signup and view all the answers

What is the anticipated effect of CAPEX-driven growth on the economy according to Umesh G. Revankar?

It will slow down due to election activities. Signup and view all the answers

How many commercial vehicles were sold in Q4 FY '24?

2.68 lakh Signup and view all the answers

What is implied about the growth of the CV portfolio in the immediate future?

Steady growth is expected Signup and view all the answers

What strategy does Umesh G. Revankar prefer over focusing solely on top line growth?

Focusing on granular, smaller loans Signup and view all the answers

What was the growth percentage for passenger vehicle sales in Q4 FY '24?

11.50% Signup and view all the answers

Which vehicle category saw a growth of 24.9% in Q4 FY '24?

Two-wheelers Signup and view all the answers

What is suggested as a reason for the company not aiming for 20% AUM growth?

Uncertainty during election periods Signup and view all the answers

What was the total number of two-wheelers sold for the full year?

179.74 lakh Signup and view all the answers

In Q4 FY '24, what was the sales figure for three-wheelers?

1.65 lakh Signup and view all the answers

What was the growth rate for tractor sales in Q4 FY '24?

9.12% Signup and view all the answers

For the full year, what was the total number of M&HCV units sold?

3.73 lakh Signup and view all the answers

What is the reason for the interest cost remaining constant?

Incremental borrowing rates only apply to new loans, not the existing book. Signup and view all the answers

What was the increase in deposit rates for the majority of the portfolio?

Between 5 to 10 basis points. Signup and view all the answers

Which market does the company not foresee returning to for further raises?

Offshore market. Signup and view all the answers

How much did the company increase its deposit rate in one particular bucket?

20 basis points. Signup and view all the answers

What is the likely impact of BS-VI vehicles on pricing in the future?

They are expected to cause an increase in pricing. Signup and view all the answers

What is the company's current guidance for the pricing outlook?

11% to 12%. Signup and view all the answers

What segment is Umesh expected to provide insights about?

Commercial vehicles (CV). Signup and view all the answers

What condition needs to be met for a significant increase in borrowing costs?

A large increase in the deposit portfolio. Signup and view all the answers

What was the percentage increase in Construction Equipment sales for the full year compared to the previous year?

23.77% Signup and view all the answers

What was the net interest income reported in Q4 FY '24?

Rs. 5,336.06 crores Signup and view all the answers

What was the percentage growth of disbursement year-on-year in Q4 FY '24?

26.64% Signup and view all the answers

How much did the profit after tax (PAT) grow in Q4 FY '24 compared to Q4 FY '23?

48.73% Signup and view all the answers

What was the AUM as of 31st March 2024 compared to the previous year?

Rs. 2,24,861.98 crores Signup and view all the answers

What was the earnings per share (EPS) for Q4 FY '24?

Rs. 51.79 Signup and view all the answers

How much was the quarter-on-quarter growth in net interest income in Q4 FY '24?

4.75% Signup and view all the answers

What was the total disbursement amount in quarter 4 FY '24?

Rs. 39,326.86 crores Signup and view all the answers

Study Notes

Shriram Finance Limited Q4 FY '24 Earnings Conference Call

Date: April 26, 2024
Key Figures:
- Indian GDP expanded 8.4% in Q3 2024
- FY25 GDP growth forecast revised to 7.6%
- Retail inflation: 4.85% in March 2024; 5.09% in February 2024
- GST collection for March 2024: Rs. 1.78 lakh crores (11.5% annual growth)
- Total commercial vehicle sales in Q4 FY24: 2.68 lakh units (vs. 2.79 lakh in Q4 FY23)
- Total commercial vehicle sales for FY24: 9.68 lakh units (compared to 9.62 lakh in FY23)
- Passenger vehicle growth: 11.50% in Q4 FY24; 8.40% for full year 2024 (42.19 lakh units vs. 38.90 lakh last year)
- Two-wheeler growth: 24.9% in Q4 FY24; 13.30% for full year 2024 (179,740 lakh vs. 158,630 last year)
- Three-wheeler growth: 7.30% in Q4 Fy'24 (1.65 vs 1.54 lakhs units) ; 41.50% for FY24 (6.92 lakh units against 4.89 last year)
- Construction equipment growth : 20.35% in Q4 FY24 (38079 units vs 31,640 units); 23.77% for full year 2024 (123,443 units vs. 99,735 units)

Management Team

Umesh G. Revankar - Executive Vice Chairman
Y. S. Chakravarti - Managing Director & CEO
Parag Sharma - Joint Managing Director & CFO
S. Sunder - Joint Managing Director
Ravi Subramanian - MD & CEO, Shriram Housing
G.S. Agarwal - CFO, Shriram Housing
Sanjay Kumar Mundra - Investor Relation Head

Key Discussion Points

Economic Outlook: The Indian economy is robust, with high GDP growth and healthy consumer sentiment.
Rural Economy: The rural economy is showing an uptick, with a normal monsoon predicted and improved agricultural credit growth.
Auto Industry: The commercial vehicle sector is performing well, but with anticipation of a slowdown. Overall, the auto sector registered positive growth.
GST Collection: GST collections are strong, growing at 11.5% year-over-year.
Asset Quality: Asset quality is improving.
Liquidity: Liquidity is being maintained by managing debt through both onshore and offshore channels.
Profitability: Strong profitability growth through credit expansion.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This conference call provides a comprehensive overview of Shriram Finance Limited's financial performance for the fourth quarter of FY '24. Key figures include GDP growth, inflation rates, and commercial vehicle sales, which reflect the overall economic trends in India. Join to explore the insights around retail and commercial vehicle statistics and other significant economic indicators.