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
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