Sundaram Finance nets Rs 1,543 cr profit in FY25

CHENNAI: Sundaram Finance closed FY 25 with a net profit of Rs 1,543 crore, up by 6 per cent over FY24. Disbursements for FY25 grew by 9 per cent to Rs 28,405 crores as compared to Rs 26,163 crore registered in FY24.

"Team Sundaram has delivered 17 per cent growth in AUM to Rs 51,476 crores, asset quality with net stage 3 at 0.75 per cent vs 0.63 per cent last year and profits from operations growing 29 per cent year-on-year. Our Group companies in asset management, general insurance and home finance have continued their trajectory from FY24 and recorded strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability," said Harsha Viji, executive vice chairman.

Disbursements for FY25 recorded a growth of 9 per cent over FY24 with 11 per cent growth in disbursements for Q4FY25 over last year. Profit after tax registered a 6 per cent rise in FY25, with net profit at Rs 1,543 crore. After excluding exceptional item in FY24, profit after tax rose 16 per cent in FY25. Return on assets closed at 2.85 per cent in FY25 as against 3.18 per cent for FY24 and capital adequacy at 20.4 per cent remains quite comfortable.

Rajiv Lochan, MD, stated, “FY25 was marked by subdued demand due to an extreme summer, general elections, a dull festive season and global volatility driven by tariff-related uncertainty as well as geopolitical complications. Customer outlook was, by and large, cautious and the burden of economic growth was largely supported by Government capex, which ended up at levels lower than the previous year. Given the uncertainties in the external demand, our focus on market share has remained clear. We have gained market share across nearly major asset classes that we focus on, resulting in 17 per cent growth in AUM for FY25 and our laser-sharp focus on controlling our costs – borrowing, operating and credit – resulted in a 29 per cent growth in profits from operations.”