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 Q4FY22 today.
On a consolidated basis, the company’s disbursements rose by 49% to a record high of INR 28,879 Cr in FY22 and for the quarter stood at INR 8,645 Cr, up 14% YoY, backed by a strong revival for Micro, Small and Medium Enterprises (MSME), gold and 2-wheeler loans. Assets Under Management (AUM) of INR 38,541 Cr, increased by 15% YoY and Consolidated Profit After Tax were up by 12.1% to INR 326 Cr in Q4FY22. The consolidated results include Shriram City and Shriram Housing Finance Limited. Shriram City Standalone PAT was the highest ever profitability at INR 303 Cr.
On a Standalone Basis: Shriram City reported its best yearly disbursements of INR 26,140 Cr, up 52.4% YoY, while AUM rose by 12% YoY to INR 33,186 Cr. PAT rose to its highest ever at INR 303 Cr in Q4FY22 compared to INR 282 Cr last year, while FY22 PAT rose by 7.4% to INR 1,086 Cr. Asset quality improved with Gross NPAs declining 100 bps QoQ to 6.31% in Q4FY22 (7.3%: Q3FY22). The company has liquidity backup worth INR 5,235 Cr as of end Q4FY22.
Segment Break-up: In FY22, MSME and Personal loan disbursements grew at the fastest pace driving overall growth. MSME loans contributed 44% of the total AUM and disbursements more than doubled to INR 6,972 cr in FY22. The company, the largest Two-Wheeler (2W) financer has witnessed strong loan disbursements. The Company has expanded its Gold loans business to 70 branches in north India and will focus on capturing market share from the unorganized sector in the region. Personal Loans disbursed to credit tested customers have shown a sharp rise in the last year and will continue to be a cross sell-based approach product.
Shriram Housing Finance Ltd, a Subsidiary of Shriram City a leading affordable home financer had a strong Q4FY22, with AUM growth of 36% YoY to INR 5,355 Cr. The AUM growth is driven by the robust disbursement growth rate of 25% YoY to INR 2739 Cr, backed by widening the distribution network to 200 touchpoints of the Shriram Group in FY22 and rising demand for affordable home finance. Shriram Housing Finance is among the top 5 affordable housing financers in India, with the widest distribution network in South India.
Commenting on the financial results Y.S. Chakravarti, MD & CEO, Shriram City said: “FY22 started on a slow note, but we managed to pick up significant pace with the improving conditions for MSMEs and pent-up demand from the ‘Aam Aadmi’. Within the MSME space, we largely cater to the trading community and they have rebounded with the pick-up in activity, thus spurring demand for MSME credit. We ramped up our personal loan book too, lending to credit tested customers. We have so far succeeded in Loan against Gold in the south and have now expanded our footprint in the north, which has good potential. Our subsidiary, Shriram Housing Finance’s AUM crossed INR 5300 cr and has become one of the top 5 largest affordable housing financers in India. Shriram Housing Finance has grown by 43% CAGR in the last 3 years and we are targeting to grow at double the industry growth rate in FY23. The merger process with Shriram Transport Finance Company, the market leader in used truck finance is progressing as per plans and is expected to be completed by Oct-22, which will give us a competitive edge.”