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Sundaram Finance Ltd (SFL) reported a 16% increase in standalone net profit to INR 349 crore for the quarter ended December 2024, compared to INR 300 crore in the same period the previous year. The growth was attributed to a rise in operating profit, supported by a strong surge in interest income. The company's board announced an interim dividend of INR 14 per share for FY25. Interest income saw a 24% rise to INR 1,478 crore, while total income increased by 23% to INR 1,664 crore. Disbursements expanded by 19%, reaching INR 7,764 crore. Despite a weaker-than-expected festival season, the company reported a 19% year-on-year increase in assets under management (AUM) to INR 50,199 crore, with an improvement in asset quality.
Sundaram Finance Ltd (SFL) recorded a 16% rise in its standalone net profit, reaching INR 349 crore for the quarter ending December 2024, compared to INR 300 crore in the corresponding period last year. This growth was primarily fuelled by a significant increase in interest income, leading to a higher operating profit. Advertisement
The board of the Chennai-based non-banking financial company (NBFC) declared an interim dividend of INR 14 per share (140%) for FY25.
SFL reported a 24% increase in interest income, amounting to INR 1,478 crore in Q3 FY25, up from INR 1,195 crore a year ago. Total income witnessed a 23% growth, reaching INR 1,664 crore from INR 1,352 crore in the same quarter of the previous year.
Executive Vice-Chairman Harsha Viji stated that economic activity during the festival season in Q3 was below expectations. However, the company achieved a 19% year-on-year increase in assets under management (AUM), reaching INR 50,199 crore, alongside an improvement in asset quality. Net stage 3 assets declined to 0.97% from 1.02% last year, while operating profits from core operations grew by 22% year-on-year.
Disbursements in Q3 FY25 expanded by 19%, rising to INR 7,764 crore from INR 6,524 crore in the previous year.
Managing Director Rajiv Lochan remarked that despite a relatively subdued Q3 for the industry, the company experienced a strong quarter. He highlighted that SFL had gained market share across nearly all asset classes, resulting in a 19% growth in disbursements. He also noted that asset quality continued to improve, even as the collections environment tightened. He further mentioned that operating profits, excluding dividends and one-time gains, increased by 22%.
For the nine months ending December 2024, net profit rose by 5% to INR 997 crore from INR 948 crore in the previous year. Interest income climbed to INR 4,148 crore from INR 3,283 crore, while disbursements increased by 8% to INR 21,532 crore from INR 19,954 crore.
The company's gross and net non-performing assets (NPA) improved to 2.46% and 1.62%, respectively, compared to 2.61% and 1.82% as of December 2023. Its asset management business reported an AUM of INR 76,038 crore, with over 80% invested in equity. The consolidated profit from this segment rose to INR 107 crore, up from INR 74 crore in the nine-month period of FY24.
Royal Sundaram, the insurance subsidiary, recorded a Gross Written Premium (GWP) of INR 2,965 crore, marking a 6% increase from INR 2,792 crore in the previous year. However, its profit after tax declined to INR 134 crore in the nine months of FY25, down from INR 178 crore in the same period of FY24.
With a consistent focus on strengthening financial health and operational capabilities, Sundaram Finance seems set for sustained growth in the upcoming quarters.
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