Sundaram Finance (SUNDARMFIN) Q2 24/25 earnings summary

Executive summary

• Assets under management (AUM) grew 20% year-over-year to ₹48,058 crore as of September 30, 2024, with market share retained across asset classes.

• Disbursements for H1FY25 increased 3% to ₹13,768 crore compared to H1FY24.

• Net interest income rose 19.4% to ₹1,304 crore in H1FY25 from ₹1,092 crore in H1FY24.

• Profit after tax remained flat at ₹648 crore for H1FY25 versus H1FY24.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were approved and disclosed, with limited review reports from joint statutory auditors confirming no material misstatements.

Financial highlights

• Standalone total income for Q2 FY25 was ₹1,612.10 crore, up from ₹1,378.11 crore in Q2 FY24; consolidated total income was ₹2,095.76 crore, up from ₹1,710.57 crore year-over-year.

• Standalone PAT for Q2 FY25 was ₹340.09 crore (Q2 FY24: ₹366.38 crore); consolidated PAT was ₹436.15 crore (Q2 FY24: ₹434.82 crore).

• Gross Stage 3 assets improved to 1.62% (provision cover 45%) from 1.86% (provision cover 42%) year-over-year.

• Net Stage 3 assets reduced to 0.89% from 1.08% year-over-year.

• Cost-to-income ratio improved to 32.27% from 35.18% in H1FY24.

Outlook and guidance

• Q2 FY25 was sluggish due to muted macroeconomic activity, with all automotive segments declining year-over-year.

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

• The company reported no deviation in the use of proceeds from recent NCD issuances, with all funds fully utilized as intended.