Sundaram Finance Ltd. Results

H1FY25 Half Yearly Result Announced for Sundaram Finance Ltd.

Finance (including NBFCs) company Sundaram Finance announced H1FY25 results Standalone Financial Highlights: Disbursements for H1FY25 grew by 3% to Rs 13,768 crore as compared to Rs 13,430 crore registered in H1FY24. The assets under management grew by 20% to Rs 48,058 crore as on 30thSeptember 2024as against Rs 40,106 crore as on 30th September 2023. Net interest income grew 19.4% to Rs 1,304 crore in H1FY25 from Rs 1,092 crore in H1FY24. Gross stage 3 as on 30th September 2024 stood at 1.62% with 45% provision cover as against 1.86% with provision cover of 42% as on 30th September 2023. Net stage 3 as on 30thSeptember 2024 closed at 0.89% as against 1.08% as on 30th September 2023. The Gross and Net NPA, as per RBI's asset classification norms for NBFCs, are 2.39% and 1.55% respectively as against 2.89% and 2.06% as of 30th September 2023. Profit from operations increased by 23% in H1FY25 as compared to H1FY24. Cost to income ratio closed at 32.27% in H1FY25 as against 35.18% in H1FY24. The dividend income was lower during H1FY25 at Rs 43 crore as against Rs 181 crore in H1FY24. Profit after tax was flat at Rs 648 crore during H1FY25 and H1FY24. Return on assets (ROA) for H1FY25 closed at 2.50% as against 2.95% for H1FY24. Return onequity (ROE) was at 14.2% for H1FY25 as against 16.2% for H1FY24. Capital Adequacy Ratio stood at 20.0% (Tier I 16.4%) as of 30th September 2024 compared to 19.9% (Tier I 15.9%) as of 30th September 2023. Consolidated Financial Highlights: The assets under management (AUM) in our lending and general insurance businesses stood at Rs 72,541 crore as on 30th September 2024 as against Rs 60,578 crore as on 30th September 2023, a growth of 20%. The assets under management of our asset management business stood at Rs 76,845 crore as on 30th September 2024 as against Rs 61,884 crore as on 30th September 2023, a growth of 24%. Profit after tax for H1FY25 grew by 18% to Rs 871 crore as compared to Rs 741 crore in H1FY24. Harsha Viji, Executive Vice Chairman, Sundaram Finance, said: Team Sundaram has delivered a balanced H1FY25 despite lower-than-expected economic activity in the half year. Assets under management grew by 20% to Rs 48,058 crore compared to the prior year period. Net stage 3 assets closed at 0.89% and profit after tax for H1FY25 was at Rs 648 crore.Our Group companies in asset management, general insurance and home finance have continued their trajectory from FY24 and recorded strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability," Rajiv Lochan, Managing Director, Sundaram Finance, said: Economic activity in Q2 was well below expectations with the monsoons disrupting consumption and government spending being slower post the general elections. The tepid economic activity was exacerbated by growing concerns on asset quality in the microfinance and unsecured lending sectoRs With no exposure in these segments, we delivered a well-balanced performance in a tough operating environment, recording operating profit growth of 23%. Looking ahead, we remain cautiously optimistic of a recovery in economic activity in H2 as domestic consumption and private sector capital expenditure resume and the central government's infrastructure spend and policy agenda gather pace. Team Sundaram will continue to remain sharply focused on delivering the Sundaram experience to our customers, our people and all stakeholders "

Q1FY25 Quarterly Result Announced for Sundaram Finance Ltd.

Finance company Sundaram Finance announced Q1FY25 results: Standalone: Disbursements for Q1FY25 recorded a growth of 7% to Rs 6,908 crore as compared to Rs 6,489 crore registered in Q1FY24. The assets under management grew by 23% to Rs 45,671 crore as on 30th June 2024 as against Rs.37,255 crore as on 30th June 2023. Net interest income rose 20% in Q1FY25 as compared to Q1FY24. Profit from operations increased by 22% in Q1FY25 as compared to Q1FY24. Gross stage 3 as on 30th June 2024 stood at 1.56% with 47% provision cover as against 1.90% with provision cover of 48% as on 30th June 2023. Net stage 3 as on 30th June 2024 closed at 0.84% as against 1.00% as on 30th June 2023. The Gross and Net NPA, as per RBI’s asset classification norms for NBFCs, are 2.21% and 1.41% respectively as against 2.96% and 2.00% as of 30th June 2023. Cost to income ratio closed at 32.90% in Q1FY25 as against 35.18% in Q1FY24. Profit after tax registered a 9% rise in Q1FY25, with net profit at Rs 308 crore. The company had registered a net profit of Rs 281 crore in Q1FY24. Return on assets (ROA) for Q1FY25 closed at 2.38% as against 2.68% for Q1FY24. Return on equity (ROE) was at 13.6% for Q1FY25 as against 14.3% for Q1FY24. Capital Adequacy Ratio stood at 19.3% (Tier I –16.2%) as of 30th June 2024 compared to 21.4% (Tier I – 17.0%) as of 30th June 2023. Consolidated: The assets under management (AUM) in our lending and general insurance businesses stood at Rs 69,234 crore as on 30 th June 2024 as against Rs 57,150 crore as on 30 th June 2023, a growth of 21%. The assets under management of our asset management business stood at Rs 80,565 crore as on 30 th June 2024 as against Rs 59,862 crore as on 30th June 2023, a growth of 35%. Profit after tax for Q1FY25 grew by 16% to Rs 435 crore as compared to Rs 375 crore in Q1FY24. Harsha Viji, Executive Vice Chairman of the firm said: “Team Sundaram has delivered a strong Q1FY25 despite lower-than-expected economic activity in the quarter. Assets under management grew by 23% to a new high of Rs 45,671 crore, net stage 3 assets closed at 0.84% and profit after tax recorded a 9% growth to Rs 308 crore over the prior year period. Our Group companies in asset management, general insurance and home finance have continued their trajectory from FY24 and recorded strong results. We continue to rely on our timetested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability," Rajiv Lochan, Managing Director of the firm said: “As we expected, economic activity in Q1 was disrupted by the general elections as well as a particularly hot summer. We delivered a well-balanced GQP performance in a tough operating environment. Looking ahead, we expect seamless continuity in the policy agenda of the government at the centre and that economic activity will pick up through the rest of the year. Team Sundaram will continue to remain sharply focused on delivering the Sundaram experience to our customers, our people and all stakeholders,”

Q4FY24 Quarterly & FY24 Annual Result Announced for Sundaram Finance Ltd.

Non-banking financial company Sundaram Finance announced Q4FY24 & FY24 results: Standalone Financial Highlights: Disbursements for FY24 recorded a growth of 25% to Rs 26,163 crore as compared to Rs 20,966 crore registered in FY23. Disbursements for Q4FY24 recorded a growth of 18% to Rs 6,209 crore as compared to Rs 5,259 crore in Q4FY23. The assets under management grew by 27% to Rs 43,987 crore as of March 31, 2024, and against Rs 34,552 crore as of March 31, 2023. Net interest income rose 17% in FY24 as compared to FY23. For the quarter ending March 31, 2024, net interest income rose 21% over the corresponding quarter in FY23. The total restructured assets under Covid relief measures enabled by the Reserve Bank of India were at Rs 260 crore, about 0.6% of loan outstanding, as on March 31, 2024. Gross stage 3 as on March 31, 2024 stood at 1.26% with 50% provision cover as against 1.66% with provision cover of 49% as on March 31, 2023. Net stage 3 as on March 31, 2024 closed at 0.63% as against 0.86% as on March 31, 2023. The Gross and Net NPA, as per RBI’s new asset classification norms for NBFCs, are 1.98% and 1.25% respectively as against 3.00% and 2.10% as of March 31, 2023. Cost to income ratio closed at 34.69% in FY24 as against 34.26% in FY23. Cost to income ratio for Q4FY24 closed at 33.46% as against 33.02% for Q4FY23. Profit after tax registered a 23% rise in FY24, with net profit at Rs 1,334 crore (excluding exceptional item). The company had registered a net profit of Rs 1,088 crore in FY23. Profit after tax registered a 22% increase in Q4FY24 (excluding exceptional item), with net profit at Rs 386 crore as compared to Rs 316 crore in Q4FY23. During the year, the Company transferred 79,73,529 equity shares of Rs 5/- each held in Sundaram Finance Holdings Limited (SFHL), representing 3.59% stake, resulting in a profit of Rs 134 crore. SFHL has ceased to be a subsidiary of the company. The Company has decided to recognise this investment at Fair Value through Other Comprehensive Income as per IND AS 109. Provision of Rs 70 crore was made in respect of investments in Alternate Investment Funds (AIF) pursuant to RBI circular dated 27th March 2024. Return on assets (ROA) for FY24 closed at 3.18% as against 2.84% for FY23. Return on equity (ROE) was at 17.5% for FY24 as against 14.9% for FY23. Capital Adequacy Ratio stood at 20.5% (Tier I –16.8%) as of March 31, 2024 compared to 22.8% (Tier I – 17.7%) as of March 31, 2023. The Company has declared a final dividend of Rs 16/- per share (160%). Consolidated Financial Highlights: The assets under management (AUM) in our lending and general insurance businesses stood at Rs 66,472 crore as on March 31, 2024 as against Rs 53,406 crore as on March 31, 2023. The assets under management of our asset management business stood at Rs 70,883 crore as on March 31, 2024 as against Rs 54,719 crore as on March 31, 2023. Profit after tax for FY24 grew by 8% to Rs 1,436 crore as compared to Rs 1,328 crore in FY23. Harsha Viji, Executive Vice Chairman of the company said, “Team Sundaram has delivered a strong FY24 despite lower-than-expected economic activity in the quarter. Assets under management grew by 27% to a new high of Rs 43,987 crore, net stage 3 assets closed at 0.63% and profit after tax recorded a 23% growth to Rs 1,334 crore (excluding exceptional item) over the prior year period. Our Group companies in asset management, general insurance and home finance have continued their trajectory from FY23 and recorded strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in class asset quality and consistent profitability. Disbursements for FY24 recorded a growth of 25% over FY23 with all asset classes and geographies witnessing significant growth. Gross stage 3 assets improved substantially over the previous year. Gross stage 3 assets as on March 31, 2024, stood at 1.26% with provision cover of 50% as against 1.66% as on March 31, 2023, with provision cover of 49%. Profit after tax at Rs 1,334 crore registered an increase of 23% (excluding exceptional item) in FY24 as against Rs 1,088 crore in FY23. Return on assets at 3.18% as against 2.84% for FY23 and capital adequacy at 20.5% remains quite comfortable to support planned growth." Rajiv Lochan, Managing Director of the company said, “Q4 witnessed sluggish demand in the automotive sector although pre-election impetus boosted infrastructure and construction activity. We improved market share and ensured best-in-class asset quality in a tough operating environment. Looking ahead, while medium term prospects for the Indian economy look promising, we expect FY25 to be a tale of two halves - H1 impacted by the general elections currently underway and normal monsoons forecasted and H2 witnessing a revival in demand and private investment. Team Sundaram will continue to take a through-cycle view and sharply focus on delivering the Sundaram experience to our customers, our people and all stakeholders,”

Q2FY24 Quarterly & H1FY24 Bi-Annual Result Announced for Sundaram Finance Ltd.

Non-banking Financial company Sundaram Finance announced Q2FY24 & H1FY24 results: Financial Performance: 1. Highest-ever disbursements: Sundaram Finance achieved its highest-ever disbursements of Rs 13,430 crore, representing a 34% growth compared to H1FY23. This growth was witnessed across all asset classes and geographies. 2. Asset Under Management (AUM) growth: The AUM of Sundaram Finance grew by 25% to reach Rs 40,106 crore as of September 30, 2023, compared to Rs 31,980 crore in the same period last year. 3. Profit after tax growth: The company registered a net profit of Rs 648 crore for H1FY24, showing a significant increase of 22% compared to Rs 529 crore in H1FY23. The net profit for Q2FY24 was Rs 366 crore, reflecting a 21% growth compared to Q2FY23. 4. Disbursements for Q2FY24 were up by 35% over Q2FY23 and profits after tax for Q2FY24 were up by 21% to Rs 366 crore from Rs 303 crore in Q2FY23 Asset Quality and Financial Indicators: 1. Improvement in asset quality: Sundaram Finance continued to witness improvement in asset quality, with Gross Stage 3 assets at 1.86% (compared to 2.54% in September 2022) and Net Stage 3 assets at 1.08% (compared to 1.37% in September 2022). 2. Provision cover: The provision cover for Gross Stage 3 assets stood at 42%, compared to 47% in September 2022. 3. NPA levels: As per RBI's new asset classification norms, the Gross Non-Performing Assets (NPA) and Net NPA for Sundaram Finance were reported at 2.89% and 2.06% respectively in September 2023, showing improvement compared to 4.29% and 2.97% in September 2022. 4. Return on assets (ROA): The ROA for H1FY24 was 2.95% compared to 2.94% in H1FY23. 5. Capital Adequacy Ratio: The Capital Adequacy Ratio stood at 19.9% (Tier I - 15.9%) in September 2023, compared to 24.3% (Tier I - 18.2%) in September 2022, indicating a comfortable position to support planned growth. “Team Sundaram has delivered a strong first half year of FY24. Assets under management grew by 25%, net stage 3 assets closed at 1.08% and profit after tax recorded a 22% growth to Rs 648 crore over the prior year period. Our Group companies in asset management, general insurance and home finance have continued their trajectory from FY23 and recorded strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability," said Harsha Viji, Executive Vice Chairman.