Sundaram Home Finance has reported a lower net profit of ₹44 crore for the second quarter ended September 30, 2024, when compared with ₹59 crore in the year-ago period.
However, disbursements for Q2 2024 rose by 27 per cent , to ₹1,543 crore from .₹1,214 crore. The company’s Assets Under Management (AUM) increased by 14 per cent and stood at ₹13,888 crore as of September 30, 2024, up from ₹12,182 crore a year earlier.
For the first half year ended September 30, 2024, it posted a net profit of ₹111 crore, slightly down from ₹117 crore in the first half of the previous year. Disbursements rose 25 per cent , reaching ₹2,896 crore when compared with ₹2,317 crore in the same period last year.
Our strong disbursement growth was driven by continued expansion into Tier 2 and 3 towns, both in the South and beyond. The Emerging Business segment also performed well for us in Q2, said D Lakshminarayanan, Managing Director of Sundaram Home Finance.
The company’s newly launched Emerging Business segment, focusing on small business loans and affordable housing finance, disbursed .₹42 crore during the second quarter of 2024.
New branches
In the second quarter, SHF continued to expand its footprint outside South India by opening new branches in Pune, Maharashtra, and Indore, Madhya Pradesh, further strengthening its presence in these states. It also grew its reach in Tier 2 cities in South India with a new branch in Belgaum, Karnataka.
To support its expansion efforts, Sundaram Home Finance hired over 300 employees during the first half of 2024. The company plans to continue exploring growth opportunities outside the South while consolidating its presence within the region.
Looking ahead, Lakshminarayanan expressed confidence in maintaining this growth trajectory in the second half of the year, citing factors such as affordability, economic growth in smaller towns, and new branch openings outside the Southern market. “We are also hopeful of expanding our presence in the newly launched Emerging Business segment and establishing a solid base in affordable housing financing,” he added.