Stockrabit · Analysts
Questions across 2 calls

Umesh G. Revankar

Firm not listed in source transcripts

Shriram Finance Limited

Shriram Finance Limited CC-May26.pdf · 2026-04-24
Yes. Basically, if you look at the overall sales number, which I presented while giving you the note. The numbers have grown right from 10% to 20% in various category especially this increase in sa les have happened post reform or post GST reforms or GST rate cuts. And therefore, the last quarter, especially Jan to March, you saw good progress in the new vehicle sales, and there is also equally demand in used vehicle in the both, I think, the demand is good. And this year, we expect the overall growth to be muted. I don't see a big growth in this financial year. But since the demand for used vehicle is likely to remain strong, I think we will have a steady growth. And we also expect on the farm side, the tractor side, this year, since the monsoons are likely to be delayed and monsoons are likely to be weaker, we expect the demand to come down a little. But however, it should not impact the used tractor financing. And on the new vehicle financing, as you asked us, there is a growth in our new vehicle financing, especially the customers who were otherwise going out to the competition, we are able to retain and finance them. And we are seeing good progress in the growth of new vehicle in our area.
I see we have ended the last financial year with around 12% to 15% growth in most of the segment. If you are able to have the same number of sales this year, flat growth, that in itself will be an achievement. So I think that itself will give us growth in all the segments for us because our penetration will go up and we'll able to retain our customers longer.
Shriram Finance Limited CC-Mar25.pdf · 2025-04-25
Yes, thank you. See, basically, Chintan, the last 2 quarters, you would have seen or you would have heard that Indian economy is slowing down a little and had certain pockets of stress building up. Even though for us, most of our loans are secured assets, we did not have any of such an impact. There were certain geographies, remote areas, where it had built up. So that's a temporary one. And I believe it is figured out by this time. And we don't really see, because the rural economy is doing well. Back to back, if you have observed that even this IMD prediction for this in this year also , the rains are likely to be above normal. So we expect the rural stress whatever building will get addressed because of a better economic situation in the rural area. Urban areas have slowed down a little because government spent on infrastructure has slowed down and therefore not creating enough opportunity for credit growth in the urban. So overall we feel that the credit cost of what, 2.0 7 in the last quarter and the overall for the full year it is 1.91 is reasonabl y good and well managed. I don't really see any further increased stress or increased credit cost for the next financial year because the rural is playing out well and we expect the infrastructure spent by government to come back and even the credit demand and the overall credit situation to improve further.
Yes, rural economy will definitely buffer because most of our operations is in the rural. If you look at our branch network, nearly 85% of our branch network is in semi-urban and rural, which has some kind of what to call linking to the rural and the agricultural economy. So we are very confident that we should not have broader challenges.