Shriram Finance Reports Positive Q2 Results, Cash Flow Declines in Last 3 Years

Net Cash Flow - Annually: Lowest at Rs -31,101.41 Cr and Falleneach year in the last three years.The company's cash revenues from business operations are falling.

Shriram Finance, a largecap finance company, has recently declared its financial results for the quarter ended September 2024. According to the latest report, the company has shown positive performance in terms of net sales, operating profit, profit before tax, and profit after tax.

The net sales for the quarter were recorded at Rs 10,089.54 crore, which is the highest in the last five quarters. This shows a consistent growth trend in the company's sales. Similarly, the operating profit (PBDIT) for the quarter was also the highest at Rs 7,253.67 crore, with a positive trend in the near term. The profit before tax (PBT) and profit after tax (PAT) also showed a positive trend, with the highest figures recorded at Rs 2,665.76 crore and Rs 2,081.21 crore respectively.

On the other hand, the company's dividend payout ratio (DPR) has also been consistently increasing over the last five years, with the highest figure recorded at 22.96%. This indicates that the company is distributing a higher proportion of its profits as dividends to its shareholders.

However, there are some areas that need improvement for Shriram Finance. The operating cash flow and net cash flow have both shown a decline in the last three years, with the lowest figures recorded at Rs -31,101.41 crore. This indicates that the company's cash revenues from business operations are falling.

Overall, Shriram Finance has shown a positive financial performance in the quarter ended September 2024, with strong sales and profitability figures. However, the company needs to focus on improving its cash flow in order to sustain its growth in the long term. Based on these factors, MarketsMOJO has given a 'Hold' call for the company's stock.