Sundaram Finance records highest disbursements in FY23

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Sundaram Finance It recorded highest ever annual payouts along with making over Rs 1,000 crore in net profit from ordinary business in FY23. The Chennai-based Non-Banking Finance Company (NBFC) has recorded 58 per cent YoY growth in payouts to reach 20 966 crore in the previous financial year, as against a payment of Rs 13,275 crore in FY22.

In a press conference, Sundaram Finance managing director Rajeev C. Lochan said the record payouts across its asset classes and geographies came after three challenging years, beginning with a slowdown in commercial vehicle sales and followed by two years of the Covid pandemic.

Of the total payments, the share of medium and heavy trade finance accounted for 31 percent, followed by passenger cars (24 percent), retail commercial vehicles (17.7 percent), and construction equipment (10.8 percent).

Total assets under management recorded a year-on-year growth of 17 per cent to reach Rs. 34,552 crore as of March 2023, compared to Rs. 29,532 crore at the end of March 2022.

The lender’s net profit grew by 20 per cent to Rs. 1,088 crore (Rs. 903 crore) over the previous financial year. “This is the first time, barring exceptional items, that we have scored ₹1,000 crore plus profit figure. This is another milestone for us,” Lucan added.

The company’s total revenue from operations grew by 5 per cent in FY23 to Rs.4,046 crore (Rs.3,870 crore), while expenses fell marginally to Rs.2,690 crore (Rs.2,714 crore) during the period.

Total Stage 3 assets improved to 1.66% as of March 2023, from 2.19% as of March 2022. Stage 3 assets are loans past due by more than 3 months.

The lender’s total non-performing assets (NPA) were 3 percent as of March 2023, compared to 2.1 percent as of March 2022. However, Luchan said the total NPA numbers over the two periods are not comparable since the most recent NPA numbers are reached according to the criteria The RBI’s new asset rating is for non-profit financial institutions, while the NPA for the previous period is under the old standards.

On a quarter-on-quarter basis, the standalone net profit grew by 6 per cent year-on-year to Rs. 316 crore (Rs. 299 crore) in Q4 FY23, while revenue from operations rose to Rs. 1,054 crore (Rs. 940 crore). .

Sundaram Finance’s consolidated net profit grew by 16 per cent to Rs. 1,500 crore (Rs. 1,296 crores), while consolidated revenue was Rs. 5,476 crore (Rs. 5,108 crores).

The consolidated figures include the results of the independent subsidiaries, Sundaram Home Finance, Sundaram Asset Management, and the joint venture company, Royal Sundaram General Insurance.

final return

The company announced the distribution of final dividends of EGP 15 per share, in addition to EGP 12 of interim profits for fiscal year 23.

Shares of Sundaram Finance closed at ₹2,485.10 per share on NSE on Friday, down 1 percent from Thursday’s closing price.