Sundaram Finance (SUNDARMFIN) Q1 24/25 earnings summary

Executive summary

• Q1FY25 saw 7% YoY growth in disbursements and 23% YoY growth in assets under management (AUM), reaching ₹45,671 crore as of June 30, 2024.

• Profit after tax rose 9% YoY to ₹308 crore, with profit from operations up 22% YoY, driven by AUM growth and improved spreads.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved by the Board and reviewed by statutory auditors.

• Financial statements were published in compliance with SEBI regulations and include disclosures on security cover and debt securities.

• Asset quality remains industry-leading, with gross stage 3 assets at 1.56% and net stage 3 assets at 0.84% as of June 2024.

Financial highlights

• Net interest income increased 20% YoY in Q1FY25.

• Standalone revenue from operations rose to ₹1,467.82 crore, up from ₹1,187.36 crore year-over-year.

• Standalone PAT for the quarter was ₹307.65 crore, compared to ₹281.28 crore in the same quarter last year.

• Consolidated revenue from operations reached ₹1,951.60 crore, up from ₹1,581.72 crore year-over-year.

• Cost-to-income ratio improved to 32.90% from 35.18% YoY.

Outlook and guidance

• Focus remains on prudent asset class and customer segment mix to optimize margins and ensure sustainable growth.

• Continued emphasis on maintaining best-in-class asset quality and cost control.

• The company continues to maintain a strong capital adequacy ratio and has not reported any deviation in the use of funds raised through recent debenture issues.