Shriram Finance Shares Surge 7% Following Strong Q2 FY25 Earnings Results, Declares 220% Interim Dividend

Shriram Finance Ltd. announced a stock split during its board meeting on Friday, October 25. The company plans to split each share with a face value of ₹10 into 5 shares with a face value of ₹2 each. The record date for this split will be announced later.

This action requires approval from the company’s members. Currently, Shriram Finance shares have a face value of ₹10, and the company has not previously done a stock split or issued bonus shares since it was listed. A stock split is typically done to increase the number of shares and enhance trading liquidity, making the stock more affordable for shareholders.

Additionally, Shriram Finance declared an interim dividend of ₹22 per equity share of face value ₹10 for the financial year 2024-25. The record date for this interim dividend is set for November 7, 2024, and eligible shareholders will receive their payments by November 24, 2024.

Share Price Movement

Shriram Finance’s share price rose over over 6% in morning trading today after the company reported strong Q2 results on Friday after the market closed.

On October 28, 2024, Shriram Finance’s share price opened at ₹3,164.00 on the NSE and then reached an intraday high of ₹3,337.35, marking an increase of more than 7.74%.

Q2 Financial Performance

For the second quarter ending September 30, 2024, Shriram Finance’s net interest income grew by 16.37%, reaching ₹5,606.74 crore, compared to ₹4,818.18 crore in the same quarter last year.

The company’s profit after tax rose by 18.30%, totalling ₹2,071.26 crore, up from ₹1,750.84 crore in the same period last year. Basic earnings per share also increased by 18.04%, reaching ₹55.09 compared to ₹46.67 a year earlier.

As of September 30, 2024, the total assets under management increased by 19.94% to ₹243,042.55 crore, up from ₹202,640.96 crore on the same date last year and ₹233,443.63 crores as of June 30, 2024.

About Shriram Transport Finance Company Ltd

Shriram Transport Finance Company Ltd is part of the SHRIRAM Group, which has a strong presence in the financing industry. STFC specialises in financing commercial vehicles, primarily on new and used trucks. It is a deposit-taking non-banking financial company (NBFC) with 1,758 branches and 831 rural centres, and it collaborates with around 500 private financiers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.