Chennai
Sundaram Home Finance, a wholly owned subsidiary of Sundaram Finance Ltd, has reported a 29 per cent increase in its net profit at ₹215.81 crore for the year ended March 31, 2023, when compared with ₹167.70 crore registered in FY22 on the back of strong growth in disbursements during the year.
Disbursements in FY23 recorded a significant growth of 70 per cent at ₹3978.41 crore (₹2336.49 crore) . Assets under management stood at ₹11,005 crore as on March 31, 2023(₹9281 crore), according to a statement.
“We achieved record disbursements of over ₹500 crore in March this year. The year was also marked by our asset portfolio crossing a significant milestone of ₹11,000 crore. We also hired over 450 people in FY23. Overall, it has been a strong growth year for us driven by demand in tier 2 and 3 towns in the southern market,” said Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance.
For the quarter ended March 31, 2023, the net profit of the company went up 24 per cent to ₹65.68 crore Rs. (₹53.05 crore) . Disbursements stood at ₹1222.46 crore (₹794.08 crore), reporting an increase of 54 per cent.
Foray into SBL
In FY23, the company made a foray into the Small Business Loans (SBL) segment wherein it is providing loans of up to ₹20 lakh for working capital and business expansion. It opened ten branches in the first six months of the foray and has plans to open at least another ten in the first half of this year. The company achieved disbursements of close to ₹10 crore in this segment in the first 6 months.
“We are getting strong positive feedback from small entrepreneurs and traders. Buoyed by this, we have chalked out further expansion in this segment during the first half of this year, wherein we will be doubling our exclusive branches and also hiring over 100 people for this segment,” said Lakshminarayanan.
During the year, the company’s long-term rating was upgraded to AAA by ICRA.
“The demand in the real estate sector continues to be positive. We are confident of continuing our growth trajectory in FY24. Our growth will continue to be driven by expansion in tier 3 and 4 towns this year,” he said.