Sundaram Home Finance FY23 net up 29% at Rs 216 crore

CHENNAI: Sundaram Home Finance has registered a 29% rise in its net profit for the year ended March 31, 2023 at Rs 215.81 crore as compared to Rs 167.70 crore registered in the year ended March 31, 2022.

Disbursements for the year ended March 31, 2023 registered an increase of 70% at Rs 3,978.41crore against Rs 2,336.49 crore registered in the year ended March 31, 2022. Assets under Management stood at Rs 11,005 crore as on March 31, 2023 as compared to Rs 9,281 crore as on March 31, 2022.

During the year, the company’s long term rating was upgraded to AAA by ICRA.

The net profit for the Q4 ended March 31, 2023 surged 24% to Rs 65.68 crore compared to Rs 53.05 crore registered in the corresponding quarter of the previous year. Disbursements for Q4 went up 54% to Rs 1222.46 crores as compared to Rs. 794.08crores registered in Q4 ended March 31, 2022.

On the highlights of FY23, Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance said, “We achieved record disbursements of over Rs 500 crore in March this year. The year was also marked by our asset portfolio crossing a significant milestone of Rs 11,000 crore. We also hired over 450 people in FY23. Overall, it has been a strong growth year for us driven by demand in Tier 2 and 3 towns in the southern market.”

During the year, the company made a foray into the Small Business Loans (SBL) segment wherein it is providing loans of up to Rs 20 lakh for working capital and business expansion. The company has opened 10 branches in the first six months of the foray and has plans to open at least another 10 in the first half of this year. It achieved disbursements of close to Rs 10 crore in this segment in the first 6 months.

Lakshminarayanan said, “It has been a solid start to the small business loans segment and our plans are on track. We are getting strong positive feedback from small entrepreneurs and traders. Buoyed by this, we have chalked out further expansion in this segment during the first half of this year, wherein we will be doubling our exclusive branches and also hiring over a 100 people for this segment.”

On the overall outlook, Lakshiminarayanan said “The demand in the real estate sector continues to be positive. We are confident of continuing our growth trajectory in FY24. Our growth will continue to be driven by expansion in Tier 3 and 4 towns this year.”