Shriram Finance: A Strong Quarter in Small Loans and Vehicles

Shriram Finance, a major player in India's non-banking financial sector, just posted some impressive numbers. Their profits grew by over 11% compared to last year, reaching 23. 07 billion rupees. This beat what most experts were expecting. The company's success comes from two main areas: small business loans and vehicle financing. Loans to small and medium businesses shot up by 25. 81%. Meanwhile, commercial vehicle loans grew by 14. 21%. Even passenger vehicle and two-wheeler loans saw big jumps of 21. 53% and 18. 81%, respectively. These loans make up most of Shriram Finance's business, around 87% of their total assets. Overall, their assets under management grew by 15. 74% to 2. 813 trillion rupees.The company is also doing better at making money from these loans. Their net interest income, which is the money they earn from loans minus what they pay on borrowings, went up by 11. 77%. Plus, their bad loans, or loans overdue by more than 90 days, dropped slightly by 0. 22%. There's been some buzz about a potential big investment. Rumors say Japan's Mitsubishi UFJ Financial Group might buy a 20% stake, but Shriram Finance hasn't confirmed this. Despite the uncertainty, the stock has been on a roll, hitting a record high after a nearly 20% gain in October. On the leadership front, Parag Sharma, who was the Chief Financial Officer, has been promoted to CEO. This change could signal new directions for the company.