Sundaram Finance on Monday reported a 16% year-on-year rise in its standalone net profit to ₹349 crore for the quarter ended December. On a sequential basis, the net profit saw a modest rise from ₹340 crore.
Revenue from operations of the Chennai-based NBFC grew 22% to ₹1,648 crore, with interest income witnessing a 23% increase to ₹1,478 crore.
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Disbursements grew 19% to ₹7,764 crore during the quarter under review, compared with ₹6,524 crore in the year-ago period. Total assets under management (AUM) rose 19% to ₹50,199 crore.
“It has been a strong quarter for the company despite a relatively-muted Q3 for the industry,” managing director Rajiv Lochan said in the earnings release. The company has gained market share across all the asset classes, resulting in a 19% YoY growth in disbursements and AUM.
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Gross stage 3 assets, loans that are overdue for over 90 days, as of December 2024 stood at 1.70%, against 1.77% as of December 2023. Net stage 3 improved to 0.97% from 1.02% during the comparable period.
On a consolidated basis, the net profit of Sundaram Finance was down 10% to ₹455 crore while revenue from operations grew 20% to ₹2,190 crore. The consolidated result includes those of standalone subsidiaries – Sundaram Home Finance, Sundaram Asset Management and joint venture company Royal Sundaram General Insurance. Consolidated AUM stood at ₹75,708 crore as on December 2024, against ₹63,658 crore as of December 2023.
The company declared an interim dividend of Rs 14 per share (140%). Shares of Sundaram Finance closed 4% lower at ₹4,326.05 on the NSE.
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