Sundaram Finance Ltd share Price Today

Sundaram Finance (SFL) is a Chennai-based financial group with a presence in auto finance, home finance, asset management and general insurance.

• Major value is derived from its vehicle financing business with AUM of ₹ 30,552 crore as of June 2022
• SFL has 632 branches with a substantial presence (~51%) in southern India

Sundaram Finance reported a mixed performance.

• Disbursements grew ~2.3x YoY and 31% QoQ at ₹ 4895 crore
• Core NII up 2.9% YoY but down 0.4% QoQ, NIMs down 21 bps QoQ at 5.3%, C/I higher at 35%
• Decline in provision led to 17.8% YoY PAT growth at ₹ 225 crore (-24.5% QoQ)
• Stage-3 assets increased 32 bps QoQ to 2.51%

Finance company Sundaram Finance announced Q1FY25 results:

Standalone: 

• Disbursements for Q1FY25 recorded a growth of 7% to Rs 6,908 crore as compared to Rs 6,489 crore registered in Q1FY24.
• The assets under management grew by 23% to Rs 45,671 crore as on 30th June 2024 as against Rs.37,255 crore as on 30th June 2023.
• Net interest income rose 20% in Q1FY25 as compared to Q1FY24. Profit from operations increased by 22% in Q1FY25 as compared to Q1FY24.
• Gross stage 3 as on 30th June 2024 stood at 1.56% with 47% provision cover as against 1.90% with provision cover of 48% as on 30th June 2023. Net stage 3 as on 30th June 2024 closed at 0.84% as against 1.00% as on 30th June 2023.
• The Gross and Net NPA, as per RBI’s asset classification norms for NBFCs, are 2.21% and 1.41% respectively as against 2.96% and 2.00% as of 30th June 2023.
• Cost to income ratio closed at 32.90% in Q1FY25 as against 35.18% in Q1FY24.
• Profit after tax registered a 9% rise in Q1FY25, with net profit at Rs 308 crore. The company had registered a net profit of Rs 281 crore in Q1FY24.
• Return on assets (ROA) for Q1FY25 closed at 2.38% as against 2.68% for Q1FY24. Return on equity (ROE) was at 13.6% for Q1FY25 as against 14.3% for Q1FY24.
• Capital Adequacy Ratio stood at 19.3% (Tier I –16.2%) as of 30th June 2024 compared to 21.4% (Tier I – 17.0%) as of 30th June 2023. 

Consolidated:

• The assets under management (AUM) in our lending and general insurance businesses stood at Rs 69,234 crore as on 30 th June 2024 as against Rs 57,150 crore as on 30 th June 2023, a growth of 21%. The assets under management of our asset management business stood at Rs 80,565 crore as on 30 th June 2024 as against Rs 59,862 crore as on 30th June 2023, a growth of 35%.
• Profit after tax for Q1FY25 grew by 16% to Rs 435 crore as compared to Rs 375 crore in Q1FY24.

Harsha Viji, Executive Vice Chairman of the firm said: “Team Sundaram has delivered a strong Q1FY25 despite lower-than-expected economic activity in the quarter. Assets under management grew by 23% to a new high of Rs 45,671 crore, net stage 3 assets closed at 0.84% and profit after tax recorded a 9% growth to Rs 308 crore over the prior year period. 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 timetested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability,"

Rajiv Lochan, Managing Director of the firm said: “As we expected, economic activity in Q1 was disrupted by the general elections as well as a particularly hot summer. We delivered a well-balanced GQP performance in a tough operating environment. Looking ahead, we expect seamless continuity in the policy agenda of the government at the centre and that economic activity will pick up through the rest of the year. Team Sundaram will continue to remain sharply focused on delivering the Sundaram experience to our customers, our people and all stakeholders,”

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