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Sundaram Finance on Monday reported a 20 per cent increase in its standalone profit after tax (PAT) at ₹366 crore for the quarter ended September 30, 2023, when compared with a PAT of ₹304 crore in the year-ago quarter, aided by double-digit growth in interest income and disbursements.
The Chennai-headquartered NBFC’s interest income grew by 30 per cent to ₹1,098 crore in the September 2023 quarter compared with ₹842 crore in the year-ago quarter, while total income stood at ₹1,378 crore when compared with ₹1,052 crore. Total expenses were higher by 38 per cent at ₹902 crore as against ₹653 crore.
Its disbursements grew 35 per cent to ₹6,941 crore in Q2 of this fiscal when compared with ₹5,139 crore in the year-ago quarter, according to a statement.
For the half-year ended September 30, 2023, the leading NBFC’s PAT grew 22 per cent to ₹648 crore when compared with ₹529 crore in H1 of FY23. Disbursements rose 34 per cent to ₹13,430 crore, the highest-ever for a half-yearly period, compared with ₹10,054 crore.
“Team Sundaram has delivered a strong first half year of FY24,” said Harsha Viji, Executive Vice Chairman.
As of September 30, 2023, the assets under management grew 25 per cent to ₹40,106 crore as against ₹31,980 crore in the year-ago period. The cost-to-income ratio closed at 35.27 per cent in H1FY24 as against 35.68 per cent in H1FY23.
The gross and net NPA stood at 2.89 per cent and 2.06 per cent respectively, as against 4.29 per cent and 2.97 per cent in the year-ago quarter.
The return on assets (ROA) for H1FY24 closed at 2.95 per cent, against 2.94 per cent for H1FY23. Return on equity (ROE) was 16.2 per cent for H1FY24 against 14.9 per cent for H1FY23.
“Prospects for the second half are promising, but geopolitical uncertainty, global macro volatility, and the implications of domestic challenges of continued inflation, inconsistent monsoons, and upcoming elections remain key monitorables. We will continue to focus on extending our market share across all asset classes and geographies,” said Rajiv Lochan, Managing Director.
Its group company, Royal Sundaram, a general insurance player, reported a PAT of ₹145 crore for H1FY24 as against a profit of ₹1 crore in H1FY23. Profit after tax during H1FY24 includes a net gain of ₹37 crore on the fair value of equity investments as against a net loss on the fair value of equity investments of ₹62 crore accounted in H1FY23. Its gross written premium (GWP) grew 11 per cent to ₹1,818 crore when compared with ₹1,645 crore a year ago.
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