Sundaram Finance Q3 net rises 24% at Rs 300 crore

CHENNAI: Sundaram Finance reported a 24 per cent surge in Q3 net profit at Rs 300 crore. The Chennai-based entity also recorded its highest-ever disbursements of Rs 19,954 crore, 27 per cent over 9MFY23 while its assets under management (AUM) went up 26 pc to Rs. 42,172 crore.

The company’s net profit for 9MFY24 was up by 23 per cent to Rs 948 crore. The Board of Directors of Sundaram Finance Ltd. (SFL) approved the unaudited standalone and consolidated financial results for the nine months ended December 31, 2023, at its meeting held on February 5, 2024, in Chennai.

“Team Sundaram has delivered a strong nine months and Q3 of FY24 despite lower-than-expected economic activity in the quarter. AUM grew to a new high, net stage 3 assets closed at 1.02 per cent and PAT recorded a 23 per cent growth 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,” said Harsha Viji, executive vice chairman.

Disbursements during 9MFY24 saw all asset classes and geographies witnessing significant growth. Return on assets at 2.79 per cent as against 2.78% for 9MFY23 and capital adequacy at 20 per cent remains quite comfortable to support planned growth.

“Q3 activity in the automotive space was well below expectations of the festival period, with several asset classes declining year-on-year and others growing in single digits. Despite this, team Sundaram has delivered a tremendous performance and we have struck a terrific balance between growth, asset quality and profitability. Q4 is off to an auspicious start but prospects will be influenced by the upcoming general elections in April-May and related events. We will continue to focus on extending our market share across all asset classes and geographies we operate in,” said Rajiv Lochan, Managing Director.