Sundaram Home reports 16% rise in Q1 net, bets on affordable home segment
Sundaram Home Finance has reported a 16 per cent increase in net profit, reaching ₹66.38 crore for the quarter ended June 30, 2024, compared to ₹57.42 crore in the same period last year.
Disbursements for the June quarter rose by 24 per cent to ₹1,353 crore, up from ₹1,094 crore in Q1FY24. Managed Assets Under Management (AUM) stood at ₹14,533 crore as of June 30, 2024, compared to ₹11,699 crore on June 30, 2023.
“Our Q1 disbursement growth was driven by market expansion in smaller towns and additional business from new branches. We will continue to explore new opportunities in Tier 3 and Tier 4 towns while strengthening our presence in the Southern markets and Tier 2 towns,” said D Lakshminarayanan, Managing Director of Sundaram Home Finance.
The company has opened 40 dedicated branches for its emerging business segment, launched this quarter, and plans to open an additional 20 branches in Tamil Nadu and Andhra Pradesh in the near term, hiring around 200 people for this segment. The emerging business segment includes affordable housing financing and loans to small businesses.
“We are also steadily increasing our presence in select geographies outside South India,” Lakshminarayanan added.
Buoyed by the government’s budget announcement pushing for affordable housing, Sundaram Home Finance is optimistic about growth prospects in this segment. The combination of affordable housing financing and small business loans is expected to register faster growth in the medium term.