Friday, Jun 21 2024 | Time 20:49 Hrs(IST)
Business Economy

Sund Fin logs highest ever disbursements

Chennai, May 24 (UNI) Sundaram Finance has logged highest-ever disbursements of Rs. 26,163 crores, 25% over FY23.
The Assets Under Management (AUM) grew by 27% to Rs. 43,987 crores, Company Executive Vice
Chairman Harsha Viji and MD Rajiv Lochan told reporters here on Friday.
Net profit for FY24 up by 23% at Rs. 1,334 crores (excluding exceptional item); Q4FY24 PAT up by 22% at Rs. 386 crores (excluding exceptional item). Continued improvement in asset quality with Gross Stage 3 assets at 1.26% (1.66% as of March 31, 2023) and Net Stage 3 assets at 0.63% (0.86% as of March 31, 2023)
Disbursements for Q4FY24 up by 18% over Q4FY23, ROA at 3.18% for FY24 (2.84% for FY23) , while Capital Adequacy Ratio stood at 20.5% (22.8% for FY23) and the company declared 160% final dividend (Rs. 16/- per share).
The Board of Directors of Sundaram Finance Ltd. (SFL) approved the audited standalone and consolidated financial results for the year ended March 31, 2024, at its meeting held here today.
“Team Sundaram has delivered a strong FY24 despite lower-than-expected economic activity in the quarter. Assets under management grew by 27% to a new high of Rs. 43,987 crores, net stage 3 assets closed at 0.63% and profit after tax recorded a 23% growth to Rs. 1,334 crores (excluding exceptional item) 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," Mr Harsha Viji said.
Disbursements for FY24 recorded a growth of 25% over FY23 with all asset classes and geographies witnessing significant growth. Gross stage 3 assets improved substantially over the previous year. Gross stage 3 assets as on March 31, 2024, stood at 1.26% with provision cover of 50% as against 1.66% as on March 31, 2023, with provision cover of 49%. Profit after tax at Rs. 1,334 crores registered an increase of 23% (excluding exceptional item) in FY24 as against Rs. 1,088 crores in FY23. Return on assets at 3.18% as against 2.84% for FY23 and capital adequacy at 20.5% remains quite comfortable to support planned growth.
“Q4 witnessed sluggish demand in the automotive sector although pre-election impetus boosted infrastructure and construction activity. We improved market share and ensured best-in-class asset quality in a tough operating environment. Looking ahead, while medium term prospects for the Indian economy look promising, we expect FY25 to be a tale of two halves - H1 impacted by the general elections currently underway and normal monsoons forecasted and H2 witnessing a revival in demand and private investment. Team Sundaram will continue to take a through-cycle view and sharply focus on delivering the Sundaram experience to our customers, our people and all stakeholders,” Rajiv Lochan said.
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