Earnings Review
Sundaram Fin PAT rises 16% on yr on steady disbursements
This story was originally published at 16:48 IST on 3 February 2025
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--Sundaram Finance capital adequacy ratio 20.00% as on Dec 31
--Sundaram Finance net stage-3 assets at 0.97% as on Dec 31
--Sundaram Finance gross stage-3 assets at 1.70% as on Dec 31
--Sundaram Finance: Oct-Dec disbursements at INR 77.64 bln, up 19% YoY
--Sundaram Finance AUM at INR 501.99 bln as on Dec 31, up 19% on year
--Sundaram Finance to pay INR 14 per share interim dividend
--Sundaram Finance Apr-Dec revenue INR 47.17 bln vs INR 39.08 bln year ago
--Sundaram Finance Apr-Dec net profit INR 9.97 bln vs INR 9.48 bln year ago
--Sundaram Finance Oct-Dec revenue INR 16.48 bln vs INR 13.46 bln year ago
--Sundaram Finance Oct-Dec net profit INR 3.49 bln vs INR 3.00 bln year ago
--Sundaram Finance Oct-Dec net profit INR 3.49 bln
By Kabir Sharma
MUMBAI – Sundaram Finance Ltd.'s net profit rose 16.3% on year to INR 3.49 billion in the December quarter on the back of steady growth in disbursements. Sequentially, the net profit rose 2.6%. The bottom line was, however, lower than market estimates of INR 3.59 billion-INR 3.81 billion.
Shares of Sundaram Finance fell after the company announced the results. On Monday, shares ended 4.1% lower at INR 4,311.70 on the National Stock Exchange despite the company declaring an interim dividend of INR 14.00 per share.
A sharp rise in finance costs weighed on the net profit of the company. Finance costs of the company rose 20.4% on year to INR 8.35 billion in Oct-Dec. The total expenses rose 24.4% on year to INR 11.96 billion for the reporting quarter. Sequentially, the expenses were up 4.3%.
"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," Rajiv Lochan, managing director, said in a press release.
The bottom line was also weighed down by a surge in impairment or provisions on financial instruments. Impairments rose more than four times to INR 911.80 million in Oct-Dec, compared with INR 214.70 million in the year-ago period. Gross stage 3 assets of the company were at 1.70% as on Dec. 31, with 43% provision cover. Net stage 3 assets were at 0.97% as on Dec. 31, as against 1.02% in the previous year.
The company reported a net profit of INR 9.97 billion for Apr-Dec, up 5.2% on year. Total revenue in Apr-Dec grew 2-20.7% on year to INR 47.17 billion. Net interest income of the company grew 21.4% on year to INR 20.40 billion in the nine months ended December.
The capital adequacy ratio of the company was at 20.0% as of Dec. 31. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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