Sundaram Finance has reported a 24 per cent growth in standalone profit after tax at ₹281 crore for the quarter ended June 30, 2023, when compared to a net profit of ₹226 crore in the year-ago quarter, aided by double-digit growth in interest income.
The Chennai-headquartered NBFC’s interest income grew 22 per cent to ₹991 crore in the June 2023 quarter, when compared to ₹813 crore in the year-ago quarter. Total income stood at ₹1,194 crore, compared to ₹942 crore. Total expenses were higher at ₹829 crore, against ₹645 crore.
Disbursements grew 32 per cent at ₹6,489 crore in Q1 of this fiscal, against ₹4,915 crore in the year-ago quarter. “All asset classes and geographies are witnessing significant growth,” said a company statement.
“We remain focussed on extending our market share across all asset classes and geographies we operate in. Looking ahead, as inflation stabilises and monsoon normalises, we expect economic activity to gather going into the festival season,” said Rajiv Lochan, Managing Director.
As on June 30, 2023, the assets under management stood at ₹37,255 crore, against ₹30,552 crore. The cost-to-income ratio closed at 35.27 per cent in Q1 FY24, against 36.02 per cent in Q1 FY23.
The Gross and Net NPA stood at 2.96 per cent and 2.00 per cent, respectively, against 2.66 per cent and 1.41 per cent in the year-ago quarter.
Return on assets for Q1FY24 closed at 2.7 per cent, against 2.5 per cent for Q1 FY23. Return on equity was at 14.3 per cent for Q1 FY24, against 12.9 per cent for Q1 FY23.
Capital Adequacy Ratio stood at 21.4 per cent (Tier I –17 per cent) as of June 30, 2023, when compared to 24.1 per cent (Tier I – 17.8 per cent) as of June 30, 2022.
“The first quarter of FY24 has been satisfying. Assets under management grew by 22 per cent and net stage 3 assets closed at 1.00 per cent. Our Group companies in asset management, general insurance, and home finance have continued their trajectory from FY23 and recorded strong results,” said Harsha Viji, Executive Vice-Chairman.
On a consolidated basis, the company’s profit after tax stood at ₹375 crore, when compared with ₹246 crore in the year-ago quarter (The consolidated results include the results of Sundaram Home Finance, Sundaram Asset Management and joint venture company Royal Sundaram General Insurance). Total consolidated income was higher at ₹1,590 crore as against ₹1,253 crore.