Non-banking Financial company Sundaram Finance announced Q2FY24 & H1FY24 results: Financial Performance: 1. Highest-ever disbursements: Sundaram Finance achieved its highest-ever disbursements of Rs 13,430 crore, representing a 34% growth compared to H1FY23. This growth was witnessed across all asset classes and geographies. 2. Asset Under Management (AUM) growth: The AUM of Sundaram Finance grew by 25% to reach Rs 40,106 crore as of September 30, 2023, compared to Rs 31,980 crore in the same period last year. 3. Profit after tax growth: The company registered a net profit of Rs 648 crore for H1FY24, showing a significant increase of 22% compared to Rs 529 crore in H1FY23. The net profit for Q2FY24 was Rs 366 crore, reflecting a 21% growth compared to Q2FY23. 4. Disbursements for Q2FY24 were up by 35% over Q2FY23 and profits after tax for Q2FY24 were up by 21% to Rs 366 crore from Rs 303 crore in Q2FY23 Asset Quality and Financial Indicators: 1. Improvement in asset quality: Sundaram Finance continued to witness improvement in asset quality, with Gross Stage 3 assets at 1.86% (compared to 2.54% in September 2022) and Net Stage 3 assets at 1.08% (compared to 1.37% in September 2022). 2. Provision cover: The provision cover for Gross Stage 3 assets stood at 42%, compared to 47% in September 2022. 3. NPA levels: As per RBI's new asset classification norms, the Gross Non-Performing Assets (NPA) and Net NPA for Sundaram Finance were reported at 2.89% and 2.06% respectively in September 2023, showing improvement compared to 4.29% and 2.97% in September 2022. 4. Return on assets (ROA): The ROA for H1FY24 was 2.95% compared to 2.94% in H1FY23. 5. Capital Adequacy Ratio: The Capital Adequacy Ratio stood at 19.9% (Tier I - 15.9%) in September 2023, compared to 24.3% (Tier I - 18.2%) in September 2022, indicating a comfortable position to support planned growth. “Team Sundaram has delivered a strong first half year of FY24. Assets under management grew by 25%, net stage 3 assets closed at 1.08% and profit after tax recorded a 22% growth to Rs 648 crore 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. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability," said Harsha Viji, Executive Vice Chairman. Result PDF