How has been the historical performance of Shriram Finance?

Answer:The historical performance of Shriram Finance shows significant growth in net sales and profits over the years, with net sales reaching 41,834.42 Cr in March 2025, up from 34,964.41 Cr in March 2024 and 30,476.78 Cr in March 2023. The total operating income followed a similar upward trend, culminating at 41,834.42 Cr in March 2025. Operating profit (PBDIT) also increased, reaching 30,049.15 Cr in March 2025, compared to 25,055.07 Cr in March 2024 and 21,745.68 Cr in March 2023. Profit before tax saw a rise to 12,502.91 Cr in March 2025, up from 9,683.64 Cr in March 2024, while profit after tax reached 9,423.31 Cr in March 2025, compared to 7,190.48 Cr in March 2024. The net profit for March 2025 was reported at 9,564.01 Cr, a substantial increase from 7,391.11 Cr in March 2024.

On the balance sheet side, total assets grew to 2,90,027.30 Cr in March 2025 from 2,45,196.92 Cr in March 2024, with total liabilities also increasing to 2,90,027.30 Cr in March 2025. The company maintained a strong cash position, with cash and cash equivalents rising to 21,365.74 Cr in March 2025 from 7,971.35 Cr in March 2024. However, cash flow from operating activities remained negative at -31,101.00 Cr in March 2024, indicating challenges in cash generation despite the growth in profits.

Breakdown:
Shriram Finance has demonstrated robust growth in its financial performance over the years, particularly in net sales and profits. The net sales surged from 30,476.78 Cr in March 2023 to 41,834.42 Cr in March 2025, reflecting a strong upward trajectory. Operating profit also saw a significant increase, reaching 30,049.15 Cr in March 2025, while profit before tax rose to 12,502.91 Cr, indicating improved operational efficiency. The profit after tax and net profit figures further underscore this growth, with net profit hitting 9,564.01 Cr in March 2025. On the balance sheet, total assets and liabilities both increased, with total assets at 2,90,027.30 Cr in March 2025. Despite the positive growth in profits, the company faced challenges in cash flow from operating activities, which remained negative, suggesting that while profitability is strong, cash generation may need to be addressed to ensure long-term sustainability.