Sundaram Home Finance, a wholly-owned subsidiary of Sundaram Finance Ltd, has reported a robust in 2023-24. Its net profit increased by 10% to ₹236 crore, up from ₹215 crore in FY23, fuelled by strong disbursement growth.
Disbursements in FY24 crossed ₹5,000 crore milestone and stood at ₹5,039 crore, an increase of 27 per cent over ₹3,978 crore in FY23. Assets under Management rose 24 per cent ₹13,812 crore as of March 31, 2024, from ₹11,180 crore as of March 31, 2023, according to a statement.
It has been a good year for real estate, with strong homebuyer demand. Our expanding branch network and growth in Tier 2 and 3 towns, especially in Madhya Pradesh and Rajasthan, helped us hit ₹5,000 crore in disbursements in FY24, said D Lakshminarayanan, MD, Sundaram Home Finance.
The company’s deposit base stood at ₹2,172 crore (₹1,956 crore) as of March 31, 2024.
For the quarter that ended March 31, 2024, the company’s net profit was lower at ₹57 crore compared with ₹65 crore in the year-ago quarter. However, disbursements rose 20 per cent to ₹1,469 crore as against ₹1,222 crore.
The small business loans (SBL) segment, where the company offers business loans of up to ₹20 lakh to small entrepreneurs, has performed well in the first 18 months. The company, which launched this offering in October 2022, opened 30 exclusive SBL branches in TN and achieved over ₹125 crore disbursements in FY24.
“Given that the small towns in the south market are seeing a good pace of growth on the back of increased affordability, we continue to be positive on the outlook for the real estate sector and are hopeful that the growth momentum will continue. Our focus will be to penetrate deeper into smaller towns. We will also explore opportunities in Tier 4 towns in south India and expect these new locations to drive our growth this year,” said Lakshminarayanan.
The company has recently expanded its presence outside the South market. It opened over 20 new branches in Tamil Nadu, Telangana and Rajasthan. As part of its expansion, the company hired over 400 people in FY24. The company now has 150 branches across the country.