Sundaram Finance logs highest-ever 9M disbursements of Rs. 21,532 crores; AUM grows 19% to Rs. 50,199 crores
The Board of Directors of Sundaram Finance Ltd. (SFL) approved the unaudited standalone and consolidated financial results for the nine months ended Dec 31, 2024, at its meeting held on Feb 03, 2025, in Chennai.
“Economic activity in the festival season that marks Q3 has been below expectations. Team Sundaram has delivered a terrific Q3 with 19% growth in AUM to Rs. 50,199 crores, improving asset quality with net stage 3 at 0.97% vs 1.02% last year and profits from operations growing 22% year-on-year. 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,” said Harsha Viji, Executive Vice Chairman.
Disbursements for 9MFY25 recorded a growth of 8% over 9MFY24 with 19% growth in disbursements for Q3FY25 over last year. Gross stage 3 assets improved over the previous year. Gross stage 3 assets as of December 31, 2024, stood at 1.70% with a provision cover of 43% as against 1.77% as of December 31, 2023, with a provision cover of 43%. Core operations performed strongly with profit from operations up by 22% in 9MFY25. Profits after tax at Rs. 997 crores registered an increase of 5% in 9MFY25 as against Rs. 948 crores in 9MFY24, primarily due to a shift in the timing of dividends in the prior period (Rs. 43 crores in 9MFY25 vs Rs. 181 crores in 9MFY24). Return on assets closed at 2.49% in 9MFY25 as against 2.79% for 9MFY24 and capital adequacy at 20.0% remains quite comfortable.
“It has been a strong quarter for the company despite a relatively muted Q3 for the industry. We have gained market share across nearly all asset classes that we focus on, resulting in 19% growth in disbursements for the quarter YOY and 19% AUM growth. Our asset quality continues to improve, even as the collections environment for the sector tightens. Operating profits (excluding dividends and one-time gains) have grown strongly by 22%. Looking ahead, we are well positioned to continue our marathon running – steady growth, best-in-class asset quality and continued resilient profitability – and in delivering the Sundaram experience to our customers, people and partners,” said Rajiv Lochan, Managing Director.
STANDALONE PERFORMANCE HIGHLIGHTS FOR 9MFY25
• Disbursements for Q3FY25 grew by 19% to Rs. 7,764 crores as compared to Rs. 6,524 crores registered in Q3FY24. Disbursements for 9MFY25 grew by 8% to Rs. 21,532 crores as compared to Rs. 19,954 crores registered in 9MFY24.
• The assets under management grew by 19% to Rs. 50,199 crores as on 31st December 2024 as against Rs. 42,172 crores as on 31st December 2023.
• Net interest income grew 21.4% to Rs. 2,040 crores in 9MFY25 from Rs. 1,681 crores in 9MFY24.
• Gross stage 3 as on 31st December 2024 stood at 1.70% with 43% provision cover as against 1.77% with provision cover of 43% as on 31st December 2023. Net stage 3 as on 31st December 2024 closed at 0.97% as against 1.02% as on 31st December 2023.
• The Gross and Net NPA, as per RBI’s asset classification norms for NBFCs, are 2.46% and 1.62% respectively as against 2.61% and 1.82% as of 31st December 2023.
• Profit from operations increased by 22% in 9MFY25 as compared to 9MFY24.
• Cost to income ratio closed at 31.37% in 9MFY25 as against 35.12% in 9MFY24.
• Profit after tax registered a 5% rise in 9MFY25, with net profit at Rs. 997 crores. The company had registered a net profit of Rs. 948 crores in 9MFY24.
• Return on assets (ROA) for 9MFY25 closed at 2.49% as against 2.79% for 9MFY24. Return on equity (ROE) was at 14.3% for 9MFY25 as against 15.5% for 9MFY24.
• Capital Adequacy Ratio stood at 20.0% (Tier I –16.6%) as of 31st December 2024 compared to 20.0% (Tier I – 16.0%) as of 31st December 2023.
• The Company has declared an interim dividend of Rs. 14/- per share (140%).
CONSOLIDATED PERFORMANCE HIGHLIGHTS FOR 9MFY25
The consolidated results of SFL include the results of its standalone subsidiaries Sundaram Home Finance, Sundaram Asset Management and joint venture company Royal Sundaram General Insurance.
• The assets under management (AUM) in our lending and general insurance businesses stood at Rs. 75,708 crores as on 31st December 2024 as against Rs. 63,658 crores as on 31st December 2023, a growth of 19%. The assets under management of our asset management business stood at Rs. 76,038 crores as on 31st December 2024 as against Rs. 67,272 crores as on 31st December 2023, a growth of 13%.
• Profit after tax for 9MFY25 grew by 14% to Rs. 1,326 crores as compared to Rs. 1,168 crores in 9MFY24.
GROUP COMPANY PERFORMANCE HIGHLIGHTS
Our group companies continued to perform well.
• The asset management business closed the nine months ended 31st December 2024 with assets under management of Rs. 76,038 crores (over 80% in equity) and consolidated profits from the asset management businesses was at Rs. 107 crores as against Rs. 74 crores in 9MFY24.
• Royal Sundaram reported a Gross Written Premium (GWP) of Rs. 2,965 crores as compared to Rs. 2,792 crores in the corresponding period of the previous year, representing a growth of 6%. The Company reported a profit after tax of Rs. 134 crores for 9MFY25 as against a profit of Rs. 178 crores in 9MFY24.
• Sundaram Home Finance continued to grow strongly with disbursements up by 29% to Rs. 4,588 crores in 9MFY25. The profit for 9MFY25 was Rs. 173 crores, as against Rs. 179 crores in 9MFY24.