Sundaram Finance Earnings: Net profit up 20% YoY to Rs. 1,088 Cr, logs highest-ever disbursements of Rs. 20,966 Cr


Sundaram Finance on Friday declared impressive Q4 and FY23 results along with a dividend of 150%.

“The Board of Directors has recommended a final dividend of 15/- per share (150%) for the financial year ended 31st March 2023, on the paid-up capital of 111.10 cr. This, together with the interim dividend of 12/- per share (120%) paid on 03rd March 2023 will make a total dividend of 27/- per share (270%) for the financial year ended 31st March 2023. The register of members and share transfer books of the Company will remain closed from Thursday, the 06th July 2023 to Friday, the 21st July 2023 (both days inclusive) for the 70th Annual General Meeting and for considering the payment of final dividend. The dividend, if approved by the shareholders, will be paid on or after 24th July 2023 to those shareholders whose names stand on the Register of Members of the Company as on 05th July 2023,” said Sundaram Finance in a stock exchange filing.

During Q4FY23, the company reported revenue from operations of 1034.93 Cr up by 12% YoY from 927.40 Cr in Q4FY22. Sundaram Finance said its net profit reached 316.36 Cr during the quarter under review up by 6% YoY from 298.80 Cr in Q4FY22.

When compared to FY22’s disbursements of Rs. 13,275 crores, those for FY23 jumped by 58% to Rs. 20,966 crores. Disbursements jumped by 40% to Rs. 5,259 crores in Q4 FY23 from Rs. 3,751 crores in Q4 FY22. The assets under management grew by 17% to Rs. 34,552 crores as of March 31, 2023, from Rs. 29,532 crores as on 31st March 2022.

The Gross and Net NPA for the NBFC are 3.00% and 2.10% respectively as against 2.42% and 1.26% as of 31st March 2022 and its cost to income ratio stood at 34.36% in FY23 as against 32.36% in FY22. With a net profit of Rs. 1,088 crores, profit after tax increased 20% in FY23. The company reported a net profit for FY22 of Rs. 903 crores. When compared to FY22, the Return on Assets (ROA) for FY23 was 2.8%, while the Return on Equity (ROE) was 14.9%. 

“We have re-established our pre-Covid growth trajectory in FY23 while improving asset quality to our traditional standards. Assets under management grew by 17%, gross stage 3 assets recovered to 1.66% with net stage 3 assets at 0.86% and profits after tax recorded a 20% growth to Rs. 1,088 crores. Our group companies in asset management, general insurance and home finance continued to perform strongly. As we look ahead, we remain steadfast in executing our balanced & time-tested approach of measured growth with best-in-class asset quality and consistent profitability,” said Harsha Viji, Executive Vice Chairman.

“It has been a satisfying year of Growth with Quality and Profitability powered by our people, processes and technology. We added over 2,500 people to our team, opened 62 branches, rolled out a number of technology, digital & data-powered offerings aimed at significantly improving the productivity of our staff and enhancing the experience of our customers. Looking ahead, as inflation eases and economic activity continues to gather pace, global factors notwithstanding, we expect growth in the economy to sustain. Team Sundaram is geared up to leverage the foundation laid in FY23 to extend our market share across asset classes & geographies while delivering the Sundaram experience to our customers and other stakeholders,” said Rajiv Lochan, Managing Director. 

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Updated: 26 May 2023, 06:29 PM IST

Article Source:Money Control

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