Sundaram Finance reports strong financial performance in Q3 of FY24
The city-based non-banking finance company, Sundaram Finance, announced a profit after tax of ₹300 crore for the October-December 2023 quarter, compared to ₹243 crore in the same period last year. This represents a significant increase in profit for the company.
Nine-month period ends with impressive financial results
The financial performance of Sundaram Finance for the nine-month period ending December 31, 2023, has been commendable. The company reported a profit after tax of ₹948 crore, compared to ₹772 crore in the same period last year. This demonstrates continued growth and profitability for the NBFC.
Executive Vice Chairman comments on the strong performance
Harsha Viji, the Executive Vice Chairman of Sundaram Finance, expressed satisfaction with the company’s financial performance. Despite lower-than-expected economic activity in the October-December quarter, the company managed to achieve impressive results. Viji credited the strong performance to the group companies in asset management, general insurance, and home finance, which have all recorded robust results.
Disbursements increase during the quarter
Sundaram Finance saw a significant increase in disbursements during the quarter under review. Disbursements grew from ₹5,653 crore to ₹6,524 crore compared to the same period last year. This demonstrates the company’s ability to attract and serve customers in a competitive market.
Interim dividend announced by the Board of Directors
The Board of Directors of Sundaram Finance declared an interim dividend of ₹14 per share (140 per cent) during its meeting on February 5. This decision reflects the company’s commitment to providing returns to its shareholders and underscores its financial strength.
Managing Director focuses on future prospects
Rajiv Lochan, the Managing Director of Sundaram Finance, commented on the company’s outlook for the future. While Q4 has started positively, Lochan acknowledged that the upcoming general elections in April-May may influence prospects. However, the company remains committed to expanding its market share and delivering an exceptional customer experience across all asset classes and geographies.
Analyst comment
Positive news:
– Sundaram Finance reported a strong financial performance in Q3 of FY24, with a significant increase in profit compared to the same period last year.
– The financial performance for the nine-month period ending December 31, 2023, was commendable, demonstrating continued growth and profitability.
– Disbursements increased during the quarter, indicating the company’s ability to attract and serve customers in a competitive market.
– The Board of Directors declared an interim dividend, reflecting the company’s commitment to providing returns to its shareholders and highlighting its financial strength.
Neutral news:
– The Executive Vice Chairman expressed satisfaction with the company’s financial performance, crediting the strong results to the group companies in asset management, general insurance, and home finance.
As an analyst, the market can expect Sundaram Finance to continue its growth trajectory and deliver strong financial performance in the future. The company’s ability to attract customers and its commitment to shareholder returns indicate a positive outlook for the market. However, the upcoming general elections may introduce some uncertainty.
