Sundaram Finance clocks Q2 PAT at Rs 340.09 crore

Non-banking finance company Sundaram Finance Ltd has reported a profit after tax for the July-September 2024 quarter at Rs 340.09 crore, the company said on Tuesday.

The city-headquartered company had registered a profit after tax of Rs 366.38 crore during the corresponding quarter of last year. For the six month period ending September 30, 2024 the profit after tax remained flat at Rs 647.74 crore as against Rs 647.66 crore registered in the year ago period.

In a statement on Tuesday, the company said the team Sundaram Finance has delivered a balanced H1 FY25 despite lower than expected economic activity in the half year.

"Assets under management grew by 20 per cent to Rs 48,058 crore compared to the prior year period (Rs 40,106 crore as on September 30, 2023). Net Stage 3 assets closed at 0.89 per cent 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," Executive Vice Chairman Harsha Viji said.

Total revenue during the quarter under review stood at Rs 1,612.10 crore from Rs 1,378.11 crore registered in the corresponding period of last year. For the half year ending September 30, 2024, the standalone total income went up to Rs 3,088.38 crore from Rs 2,572.22 crore registered a year ago.

"We continue to rely on our time-tested approach of steady and sustainable growth with best in class asset quality and consistent profitability," Viji said on the financial performance for the period ending September 30, 2024.

During the half year period ending September 30, 2024, the profit after tax was flat Rs 647.74 crore primarily due to a shift in the timing of dividend income last year. Dividend income during the six month period ending September 30, 2024 was Rs 43 crore as compared to Rs 181 crore registered in the year ago period.

On the outlook for the year, Sundaram Finance Ltd Managing Director Rajiv Lochan said, "We remain cautiously optimistic of a recovery in economic activity in H2 (Second half of the year ending September 30, 2024) as domestic consumption and private sector capital expenditure resume and the central government's infrastructure spend and policy agenda gather pace."