Finance (including NBFCs) company Sundaram Finance announced H1FY25 results Standalone Financial Highlights: Disbursements for H1FY25 grew by 3% to Rs 13,768 crore as compared to Rs 13,430 crore registered in H1FY24. The assets under management grew by 20% to Rs 48,058 crore as on 30thSeptember 2024as against Rs 40,106 crore as on 30th September 2023. Net interest income grew 19.4% to Rs 1,304 crore in H1FY25 from Rs 1,092 crore in H1FY24. Gross stage 3 as on 30th September 2024 stood at 1.62% with 45% provision cover as against 1.86% with provision cover of 42% as on 30th September 2023. Net stage 3 as on 30thSeptember 2024 closed at 0.89% as against 1.08% as on 30th September 2023. The Gross and Net NPA, as per RBI's asset classification norms for NBFCs, are 2.39% and 1.55% respectively as against 2.89% and 2.06% as of 30th September 2023. Profit from operations increased by 23% in H1FY25 as compared to H1FY24. Cost to income ratio closed at 32.27% in H1FY25 as against 35.18% in H1FY24. The dividend income was lower during H1FY25 at Rs 43 crore as against Rs 181 crore in H1FY24. Profit after tax was flat at Rs 648 crore during H1FY25 and H1FY24. Return on assets (ROA) for H1FY25 closed at 2.50% as against 2.95% for H1FY24. Return onequity (ROE) was at 14.2% for H1FY25 as against 16.2% for H1FY24. Capital Adequacy Ratio stood at 20.0% (Tier I 16.4%) as of 30th September 2024 compared to 19.9% (Tier I 15.9%) as of 30th September 2023. Consolidated Financial Highlights: The assets under management (AUM) in our lending and general insurance businesses stood at Rs 72,541 crore as on 30th September 2024 as against Rs 60,578 crore as on 30th September 2023, a growth of 20%. The assets under management of our asset management business stood at Rs 76,845 crore as on 30th September 2024 as against Rs 61,884 crore as on 30th September 2023, a growth of 24%. Profit after tax for H1FY25 grew by 18% to Rs 871 crore as compared to Rs 741 crore in H1FY24. Harsha Viji, Executive Vice Chairman, Sundaram Finance, said: Team Sundaram has delivered a balanced H1FY25 despite lower-than-expected economic activity in the half year. Assets under management grew by 20% to Rs 48,058 crore compared to the prior year period. Net stage 3 assets closed at 0.89% and profit after tax for H1FY25 was at Rs 648 crore.Our Group companies in asset management, general insurance and home finance have continued their trajectory from FY24 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," Rajiv Lochan, Managing Director, Sundaram Finance, said: Economic activity in Q2 was well below expectations with the monsoons disrupting consumption and government spending being slower post the general elections. The tepid economic activity was exacerbated by growing concerns on asset quality in the microfinance and unsecured lending sectoRs With no exposure in these segments, we delivered a well-balanced performance in a tough operating environment, recording operating profit growth of 23%. Looking ahead, we remain cautiously optimistic of a recovery in economic activity in H2 as domestic consumption and private sector capital expenditure resume and the central government's infrastructure spend and policy agenda gather pace. Team Sundaram will continue to remain sharply focused on delivering the Sundaram experience to our customers, our people and all stakeholders " Result PDF