Net profit for the quarter rose 22% year-on-year to ₹522 crore, while revenue increased 10.2% to ₹2,076 crore, reflecting sustained momentum across the company’s lending operations.
Loan demand remained healthy during the quarter. Disbursements grew 22% year-on-year to ₹8,947 crore, while assets under management (AUM) expanded 17% to ₹62,275 crore, underlining the company’s continued ability to grow its loan book across business segments.
Asset quality also improved further. Gross Stage 3 assets declined to 1.71% from 1.91% a year earlier, while Net Stage 3 assets improved to 0.88%, compared with 1.08% in the corresponding quarter last year. Return on Assets (RoA) improved to 3.06% from 2.91%, even as the capital adequacy ratio stood at a comfortable 18.5%.
Executive Vice Chairman Harsha Viji said the quarter began with stronger demand than a year ago despite a challenging external environment marked by geopolitical tensions in West Asia, elevated commodity prices, supply chain disruptions and uncertainty around the monsoon.
She said the company’s performance reflected its long-standing focus on disciplined growth, strong asset quality and consistent profitability, while adding that the group’s businesses in asset management, general insurance and housing finance also continued to deliver robust results.
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Managing Director Rajiv Lochan said the operating environment has become more supportive for growth, although geopolitical developments and rainfall remain key factors to watch. He added that Sundaram Finance’s established franchise, disciplined execution and customer-centric approach position it well to deepen its presence and continue gaining market share.
Investors welcomed the results ahead of the earnings announcement. Shares of Sundaram Finance gained over 3.6% during the session, rising from an intraday low of ₹4,629.80 to a high of ₹4,796.90 on NSE.
