Shares of Sundaram Finance Ltd. declined by over 3% following the release of its September quarter results, which reported a 7% drop in standalone net profit, down to ₹340 crore compared to the same period last year. Despite a 16% rise in total revenue from operations, which increased to ₹1,601 crore, disbursements dropped by 1.2% year-over-year.
Key financial highlights include:
- Revenue Growth: Total revenue rose to ₹1,601 crore, up from ₹1,375 crore in Q2 FY2024.
- Disbursements: Dropped slightly by 1.2% YoY but showed 3% growth in the first half, totaling ₹13,768 crore.
- Assets Under Management: Increased 20% YoY to ₹48,058 crore.
- Gross NPA Ratio: Slightly up to 2.39% from 2.21% in the previous quarter, while net NPA declined to 1.55%.
- Net Interest Income: Saw a healthy rise of 19.4% YoY, reaching ₹1,304 crore.
- Dividend Income: Lower at ₹43 crore compared to ₹181 crore last year.
Sundaram Finance’s managing director, Rajiv Lochan, cited monsoon disruptions and slower government spending post-elections as factors affecting economic activity in Q2. However, he expressed cautious optimism for a recovery in the second half of the fiscal year, as domestic consumption and government infrastructure spending are expected to pick up.
At 9:28 am, the shares were trading 2.95% lower at ₹4,825.15 on the NSE.
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