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Informist, Monday, Feb. 2, 2025

 

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--Sundaram Finance Oct-Dec net profit INR 4.03 bln vs INR 3.49 bln year ago 
--Sundaram Finance Oct-Dec revenue INR 19.11 bln vs INR 16.48 bln year ago 
--Sundaram Finance Oct-Dec labour code implementation cost INR 659.8 mln 
--Sundaram Finance to pay INR 16 per share interim dividend 
--Sundaram Finance interim dividend record date is Feb 6 
--Sundaram Finance Apr-Dec net profit INR 12.26 bln vs INR 9.97 bln year ago 
--Sundaram Finance Apr-Dec revenue INR 56.08 bln vs INR 47.17 bln year ago

 

By Durgesh Nandan

 

MUMBAI – Sundaram Finance Ltd. reported a moderate double-digit rise on year in net profit for the December quarter, primarily supported by total revenue from operations. However, the bottom line missed brokerage estimates.

 

The company's net profit for the reporting quarter rose over 15% on year to INR 4.03 billion. Its net profit rose over 2% on quarter. The non-banking finance company's revenue for the reporting quarter rose nearly 16% on year to INR 19.11 billion. Sequentially, the lender's revenue rose more than 5%.

 

The company has announced an interim dividend of INR 16 per share for the financial year 2025-26 (Apr-Mar), which will be paid on or after Feb. 25.

 

The company added a one-time cost of INR 660 million as an exceptional item owing to the impact of the new labour codes. The non-bank lender reported other income of INR 166 million, up more than 5% on year. However, sequentially, the other income soared almost 300%.

 

The company's provisions on financial instruments rose nearly 12% on year but fell nearly 13% on quarter to INR 10.2 billion for the December quarter. This sequential decline in provisions supported its bottom line. The company reported total expenses of INR 13.36 billion, up nearly 12% on year and over 2% on quarter.

 

"Q3FY26 (Oct-Dec) witnessed the macroeconomic tailwinds on the back of the announcement of a robust 8.2% real GDP growth in Q2 and the impact of the September 22nd, 2025, initiation of GST 2.0 reforms," Executive Vice-Chairman Harsha Viji said in a press release. "While private-sector capital expenditure continued to remain muted, consumption activity picked up across sectors, aided by the GST rate reduction and the sentimental festival season demand."

 

In terms of asset quality, the non-banking finance company's gross stage 3 assets ratio was at 1.91% as on Dec. 31, up slightly from 1.70% a year ago. The net stage 3 assets ratio was at 1.06% as on Dec. 31, up from 0.97% a year ago.

 

Disbursements for the December quarter were at INR 88.47 billion, up 14% on year. Disbursements for the nine months ended Dec. 31 were at INR 242.70 billion, up 13% on year. The lender's assets under management were at INR 582.4 billion as on Dec. 31, up 16% on year.

 

Sundaram Finance's capital adequacy ratio was 19.1% as on Dec. 31, down 90 basis points from a year ago. The net profit for the nine months ended Dec. 31 rose nearly 23% on year to INR 12.26 billion. A year ago, for the nine-month period, the company had reported a net profit of INR 9.97 billion. The total revenue from operations for the period rose nearly 19% on year to INR 56.08 billion. A year ago, the revenue from operations was at INR 47.17 billion.

 

Shares of Sundaram Finance surged after the company announced its earnings Monday and closed 8.1% higher at INR 5,358.50 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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