Non-banking Financial company Sundaram Finance announced Q1FY24 results: Consolidated Q1FY24: The assets under management (AUM) in the lending and general insurance businesses stood at Rs 57,150 crore as on June 30, 2023, against Rs 47,432 crore as on June 30, 2022. The assets under management of our asset management business stood at Rs 59,862 crore as on June 30, 2023, against Rs 48,810 crore as on June 30, 2022. Profit after tax for Q1FY24 was Rs 375 crore as compared to Rs 246 crore in Q1FY23. Standalone Q1FY24: Disbursements for Q1FY24 recorded a growth of 32% to Rs 6,489 crore as compared to Rs 4,915 crore registered in Q1FY23. The assets under management stood at Rs 37,255 crore as on June 30, 2023, as against Rs 30,552 crore as on June 30, 2022, up by 22%. The total restructured assets under Covid relief measures enabled by the Reserve Bank of India were at Rs 538 crore, about 1.5% of the loan outstanding, as on June 30, 2023. Gross stage 3 as on June 30, 2023, stood at 1.90% with 48% provision cover as against 2.51% with provision cover of 49% as on June 30, 2022. Net stage 3 as on June 30, 2023, closed at 1.00% as against 1.30% as on June 30, 2022. The Gross and Net NPA, as per RBI’s new asset classification norms for NBFCs, are 2.96% and 2.00% respectively as against 2.66% and 1.41% as of June 30, 2022 (based on old norms). Cost to income ratio closed at 35.27% in Q1FY24 as against 36.02% in Q1FY23. Profit after tax registered a 25% rise in Q1FY24, with net profit at Rs 281 crore. The company registered a net profit of Rs 226 crore in Q1FY23. Return on assets (ROA) for Q1FY24 closed at 2.7% as against 2.5% for Q1FY23. Return on equity (ROE) was at 14.3% for Q1FY24 as against 12.9% for Q1FY23. Excluding investments in subsidiaries and group companies, core ROE was at 16.2% for Q1FY24 as against 15.5% for Q1FY23. Capital Adequacy Ratio stood at 21.4% (Tier I –17%) as of June 30, 2023, compared to 24.1% (Tier I – 17.8%) as of June 30, 2022. “The first quarter of FY24 has been satisfying. Assets under management grew by 22%, net stage 3 assets closed at 1.00% and profit after tax recorded a 25% growth to Rs 281 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. Overall, our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability remains our primary focus," said Harsha Viji, Executive Vice Chairman. Result PDF
Non-banking Financial company Sundaram Finance announced Q4FY23 & FY23 results: Sundaram Finance logs highest-ever disbursements of Rs 20,966 crore, 58% over FY22 AUM grows 17% to Rs 34,552 crore Net profit for FY23 up by 20% at Rs 1,088 crore Continued improvement in asset quality with Gross Stage 3 assets at 1.66% (2.19% as of March 31, 2022) and Net Stage 3 assets at 0.86% (1.07% as of March 31, 2022) Disbursements for Q4FY23 were up by 40% over Q4FY22 and profits after tax for Q4FY23 were up by 6% to Rs 316 crore from Rs 299 crore in Q4FY22 ROA at 2.8% (2.5% in FY22) and Capital Adequacy Ratio at 22.8% (24.4% in FY22) 150% final dividend (Rs 15 per share) declared “We have re-established our pre-Covid growth trajectory in FY23 while improving asset quality to our traditional standards. Assets under management grew by 17%, gross stage 3 assets recovered to 1.66% with net stage 3 assets at 0.86% and profits after tax recorded a 20% growth to Rs 1,088 crore. Our group companies in asset management, general insurance, and home finance continued to perform strongly. As we look ahead, we remain steadfast in executing our balanced & time-tested approach of measured growth with best-in-class asset quality and consistent profitability," said Harsha Viji, Executive Vice Chairman. “It has been a satisfying year of Growth with Quality and Profitability powered by our people, processes, and technology. We added over 2,500 people to our team, opened 62 branches, and rolled out a number of technology, digital & data-powered offerings aimed at significantly improving the productivity of our staff and enhancing the experience of our customers. Looking ahead, as inflation eases and economic activity continues to gather pace, global factors notwithstanding, we expect growth in the economy to sustain. Team Sundaram is geared up to leverage the foundation laid in FY23 to extend our market share across asset classes & geographies while delivering the Sundaram experience to our customers and other stakeholders,” said Rajiv Lochan, Managing Director. Result PDF