Sundaram Finance AUM grows 17% to Rs. 51,476 crores

VMPL
New Delhi [India], May 28: The Board of Directors of Sundaram Finance Ltd. (SFL) approved the audited standalone and consolidated financial results for the year ended March 31, 2025, at its meeting held on May 26, 2025, in Chennai.
"Team Sundaram has delivered 17% growth in AUM to Rs. 51,476 crores, asset quality with net stage 3 at 0.75% vs 0.63% last year and profits from operations growing 29% 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 grew by 9% in FY25 to Rs. 28,405 crores.
-Profits from Operations up by 29% in FY25
-Gross Stage 3 assets stood at 1.44% (1.26% as of March 31, 2024) and Net Stage 3 assets at 0.75% (0.63% as of March 31, 2024)
-Disbursements for Q4FY25 up by 11% over Q4FY24
-Profit after tax closed at Rs.1,543 crores, up by 6% over FY24
-ROA at 2.85% for FY25 (3.18% for FY24)
-Capital Adequacy Ratio at 20.4% (20.5% for FY24)
-210% final dividend (Rs. 21/- per share) declared
Disbursements for FY25 recorded a growth of 9% over FY24 with 11% growth in disbursements for Q4FY25 over last year. Gross stage 3 assets as on March 31, 2025, stood at 1.44% with provision cover of 49% as against 1.26% as on March 31, 2024, with provision cover of 50%. Profits from operations performed strongly, growing by 29% in FY25. Profit after tax registered a 6% rise in FY25, with net profit at Rs. 1,543 crores. After excluding exceptional item in FY24, profit after tax rose 16% in FY25. Return on assets closed at 2.85% in FY25 as against 3.18% for FY24 and capital adequacy at 20.4% remains quite comfortable.
Rajiv Lochan, Managing Director, 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% growth in AUM for FY25 and our laser-sharp focus on controlling our costs - borrowing, operating & credit - resulted in a 29% growth in profits from operations."
"Looking ahead, we expect macroeconomic sentiments to improve on the rural front because of above normal monsoons forecasted by the IMD and strong procurement, and, on the urban front, due to an improvement in government spending on infrastructure as well as the income tax benefits announced in the union budget. As private consumption improves, private sector capex will likely pick up. We are well positioned to continue our marathon running - steady growth, best-in-class asset quality and continued resilient profitability - and in delivering the Sundaram experience to our customers, people and partners," he added.
STANDALONE PERFORMANCE HIGHLIGHTS FOR FY25
-Disbursements for FY25 grew by 9% to Rs. 28,405 crores as compared to Rs. 26,163 crores registered in FY24. Disbursements for Q4FY25 grew by 11% to Rs. 6,873 crores as compared to Rs. 6,209 crores registered in Q4FY24.
-The assets under management grew by 17% to Rs. 51,476 crores as on 31st March 2025 as against Rs. 43,987 crores as on 31st March 2024.
-Net interest income grew by 22% to Rs. 2,793 crores in FY25 from Rs. 2,284 crores in FY24.
-Gross stage 3 assets as on 31st March 2025 stood at 1.44% with 49% provision cover as against 1.26% with provision cover of 50% as on 31st March 2024. Net stage 3 assets as on 31st March 2025 closed at 0.75% as against 0.63% as on 31st March 2024.
-The Gross and Net NPA, as per RBI's asset classification norms for NBFCs, are 2.17% and 1.38% respectively as against 1.98% and 1.25% as of 31st March 2024.
-Cost to income ratio improved to 30.80% in FY25 as against 34.68% in FY24.
- Profit after tax registered a 6% rise in FY25, with net profit at Rs. 1,543 crores. After excluding exceptional item in FY24, profit after tax rose 16% in FY25.
-Return on assets (ROA) for FY25 closed at 2.85% as against 3.18% for FY24. Return on equity (ROE) was at 16.30% for FY25 as against 17.51% for FY24.
-Capital Adequacy Ratio stood at 20.4% (Tier I -17.4%) as of 31st March 2025 compared to 20.5% (Tier I - 16.8%) as of 31st March 2024.
-The Company has declared a final dividend of Rs. 21/- per share (210%).
CONSOLIDATED PERFORMANCE HIGHLIGHTS FOR FY25
The consolidated results of SFL include the results of its standalone subsidiaries Sundaram Home Finance, Sundaram Asset Management and joint venture company Royal Sundaram General Insurance.
-The assets under management (AUM) in our lending and general insurance businesses stood at Rs. 78,145 crores as on 31st March 2025 as against Rs. 66,472 crores as on 31st March 2024, a growth of 18%. The assets under management of our asset management business stood at Rs. 71,826 crores as on 31st March 2025 as against Rs. 70,883 crores as on 31st March 2024.
-Profit after tax for FY25 grew by 31% to Rs. 1,879 crores as compared to Rs. 1,436 crores in FY24.
GROUP COMPANY PERFORMANCE HIGHLIGHTS
Our group companies continued to perform well.
-The asset management business closed the year ended 31st March 2025 with assets under management of Rs. 71,826 crores (over 80% in equity) and consolidated profits from the asset management businesses were at Rs. 154 crores as against Rs. 112 crores in FY24.
- Royal Sundaram reported a Gross Written Premium (GWP) of Rs. 4,065 crores as compared to Rs. 3,825 crores in the previous year, representing a growth of 6%. The company reported a profit after tax of Rs. 133 crores for FY25 as against a profit of Rs. 169 crores in FY24. Profit after tax during FY25 includes net loss of Rs. 38 crores on Fair Value of Equity investments as against net gain on Fair Value of equity investments of Rs. 71 crores in FY24.
-Sundaram Home Finance continued to grow strongly with disbursements up by 30% to Rs. 6,517 crores in FY25. The profit for FY25 was Rs. 245 crores, as against Rs. 236 crores in FY24.
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