‘Shriram Finance to focus on small ticket loans, used vehicles portfolio’

Shriram Finance Ltd. focuses on small ticket loans and high-yielding products to enhance bottomline growth in FY25.

Shriram Finance Ltd. (SFL) will be focusing on building its bottomline granularly than the topline by offering small ticket loans and high-yielding products during the current fiscal, said Executive Vice Chairman Umesh G. Revankar.

“We will be focusing on our niche area of small ticket lending and used vehicle portfolio, where high-yielding assets will be given a little higher weightage,” Mr. Revankar said during an interaction.

Asserting that the company’s growth would be calibrated and SFL would be focusing on improving the bottomline, he said the entire focus was to bring efficiency and profitability, and not the topline growth.

In FY24, SFL’s standalone net profit rose 20% year-on-year to ₹7,190 crore, while total income increased by 17% to ₹34,998 crore.

According to him, the industry might expect slower growth in Q1 of FY25 as the government machinery was involved in the elections during April and May. “There is likely to be some slowdown in the capex activity of the government and infrastructure projects,” he said.

Mr. Revankar said though the growth may be a little slow in Q1, SFL expected good demand from rural areas in Q2 with the IMD’s prediction on the monsoon being positive.

Talking about the FY25 guidance for return on equity, he said, “We are already at 16.4% and we should be able to cross 17%. By FY26, we will be at 18%. Assets Under Management will grow at 15% for FY25.”