Sundaram Finance Ltd (SFL) has reported a 20 per cent increase in its standalone profit after tax (PAT) at ₹243 crore for the quarter ended December 31, 2022, compared with a PAT of ₹202 crore in the year-ago quarter.
The company has also declared an interim dividend of ₹12 per share.
Its interest income grew 5 per cent at ₹897 crore (₹857 crore), while total income stood at ₹1,011 crore (₹961 crore). Total disbursements grew 45 per cent at ₹5,553 crore (₹3,843 crore).
The total restructured assets under Covid relief measures enabled by the RBI were at ₹765 crore, about 2.3 per cent of the loan outstanding, as on December 31, 2022.
Asset quality
The gross and net NPAs, per RBI’s new asset classification norms for NBFCs, were at 3.97 per cent and 2.78 per cent, respectively, as of December 2022 as against 7.71 per cent and 6.17 per cent in the year-ago quarter.
Assets under management stood at ₹33,558 crore as of December 31, 2022, an increase of 13 per cent. Capital adequacy ratio, too, stood at 23.3 per cent (tier I –17.8 per cent) as of December 31, 2022, as against 23.6 per cent (tier I – 16.7 per cent) as of December 31, 2021.
Bumper festival season
“The third quarter witnessed a bumper festival season and we have been able to strengthen our market share across geographies and asset classes,” said Rajiv Lochan, Managing Director.
For the 9 months ended December 31, 2022, the company’s PAT stood at ₹772 crore (₹605 crore), an increase of 28 per cent. Interest income was lower at ₹2,551 crore (₹2,573.5 crore). However, disbursements recorded a growth of 64 per cent at ₹15,587 crore.