Shriram Transport Finance Co Ltd

About Shriram Finance Ltd

Shriram Finance is one of the country's biggest retail NBFCs, offering credit solutions for commercial vehicles, two-wheeler, car, home, gold, and personal and small business loans. It was established in 1979 as Shriram Transport Finance Company Limited (STFC). In 1984, the same year, the company launched its IPO, listing its shares on the BSE. In 1990, the company received investment from Telco & Ashok Leyland. The company continued operational growth and received investment from ChrysCapital in 2005 and TPG in 2006. STFC commenced financing construction equipment in 2010. In 2013, the company’s Asset Under Management (AUM) crossed ₹500 billion. In 2017-18, the company sold its controlling stake of 55.44% in its wholly-owned subsidiary, Shriram Automall India Limited (SAMIL), to MXC Solutions India Private Limited. In November 2022, Shriram Transport Finance Company Limited, Shriram Capital Limited and Shriram City Union Finance Limited merged to form Shriram Finance Limited. The company believes that the merger will bring significant transformations, primarily from cross-selling loan and insurance products. Furthermore, the merged company will benefit from decreased funding prices and running costs, such as enhanced worker efficiency and reduced client acquisition expenses. The company owns a network of 2,975 branches and a workforce of 71,373. Shriram Finance has combined Assets Under Management (AUM) worth ₹ 2.02 lakh crore as of September 30, 2023.

Business Segments

• Personal Segment: Under this segment, the company provides Two-wheeler loans, gold loans, personal loans and used car loans.
• Business Segment: The company provides commercial vehicle loans, working capital loans and business loans.
• Deposits:  Under this segment, the company accept fixed deposits and provides fixed investment plans.

Subsidiary As of March 31, 2023, the company Shriram Housing Finance Limited is the only subsidiary which is engaged in the business housing finance solutions.

Key Personnel

Mr. Y. S. Chakravarti, Managing Director Mr. Y. S. Chakravarti is currently the Managing Director (MD) of the company. Mr Y S Chakravarti commenced his career in Shriram Chits Pvt. Ltd., Andhra Pradesh, in June 1991 as an Executive Trainee and rose to the position of Chief Executive of the Organisation by 1998. He joined Shriram City Union Finance Limited (SCUF) in 2008 as Executive Director. In 2010, he was elevated to the position of Chief Operating Officer (COO). He became the Managing Director and CEO of SCUF in 2019. Corporate Actions The company has no history of bonus issues of shares, stock splits, or other corporate actions.

Financial Highlights for FY 2022-23

• During the year, the MSME loan and two-wheeler loan segments witnessed meaningful growth.
• It achieved strong financial growth through a higher NIM of 8.37%
• The company’s credit fundamentals were reinstated through strong credit ratings received from multiple credit rating agencies.

Management Outlook

• The company has established medium-term and long-term strategies to drive the achievement of its corporate goals over the next 3-5 years. The growth strategies revolve around periodic business plan reviews and effective liquidity management.
• The company is focused on collaborating business operations and expanding the product range across branches, as well as implementing SuperApp.