Sundaram Home Finance reported a 24% increase in its net profit to Rs 65.68 crore for the quarter ended March, compared to Rs 53.05 crore in the same period a year ago. Payouts increased by 54% to Rs 1,222.46 crore, compared to Rs 794.08 crore.
For FY23, net profit rose 29% to Rs 215.81 crore from Rs 167.70 crore. Payouts increased by 70% to Rs 3,978.41 crore, compared to Rs 2,336.49 crore. Assets under management amounted to Rs 11,005 crore as compared to Rs 9,281 crore.
Lakshminarayanan Duraiswamy, MD, said, “We made a record amount of more than Rs 500 crore in March. The year was also marked by our asset portfolio crossing a major milestone of Rs 11,000 crore. We hired over 450 people in FY23. Overall, it was a strong year of growth for us, driven by demand in the tier II and III cities in the southern market.”
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During the year, the company made a foray into the small business lending segment where it provides loans of up to Rs 20 lakh for working capital and business expansion. The company has opened 10 stores in the first six months of the foray and plans to open at least 10 more in the first half of this year. The company made payouts of almost Rs 10 crore in this segment in the first six months.
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Lakshminarayanan said, “It has been a solid start for the small business lending segment and our plans are on track. We receive strong positive feedback from small business owners and merchants. Supported by this, we have achieved further expansion in this segment in the first half of this year, doubling our exclusive locations and also hiring more than 100 people for this segment.”
On the overall outlook, Lakshiminarayanan said: “Demand in the real estate sector remains positive. We are confident that we can continue our growth trajectory in FY24. Our growth this year will be driven by expansion in tier III and IV cities.”
