Sundaram Finance Posts Nine Month Results With Strong Growth

Disbursements for the period totalled Rs.242.7 bn, with quarter three disbursements at Rs.88.5 bn, up 14 per cent year on year. Assets under management rose by 16.0 per cent to Rs.582.4 bn.

Profit after tax for the nine month period closed at Rs.12.3 bn, up by 23 per cent over the comparable period. Profits from operations grew by 20 per cent to Rs.15.3 bn, while quarter three profits from operations were Rs.5.9 bn, supporting a quarter three net profit of Rs.4.0 bn. Net interest income expanded by 21 per cent to Rs.24.8 bn with quarter three net interest income at Rs.8.7 bn.

Asset quality metrics remained robust with gross stage three assets at one point nine one per cent and provision cover of 45 per cent, compared to one point seven zero per cent and 43 per cent a year earlier. Net stage three assets closed at one point zero six per cent versus zero point nine seven per cent. The gross and net non performing assets were two point six nine per cent and one point seven three per cent respectively under regulatory classification.

Return on assets for the period was two point six seven per cent and capital adequacy stood at 19.1 per cent, while the cost to income ratio improved to 28.72 per cent. The company has accounted for Rs.660 mn as exceptional items for the incremental impact of the new labour codes. The board declared an interim dividend of 160 per cent equivalent to Rs.16 per share.

On a consolidated basis assets under management in lending and general insurance rose to Rs.873.0 bn, up 15 per cent, and consolidated profit after tax increased to Rs.15.1 bn after recognising Rs.670 mn of exceptional items. Group businesses recorded healthy performance with the asset management business managing around Rs.862.0 bn, Royal Sundaram reporting gross written premium of Rs.33.8 bn and Sundaram Home Finance disbursements of Rs.49.1 bn.