Sundaram Finance Posts Nine Month Results With AUM Growth
Profit after tax closed at Rs. 12,260 mn for the nine months, a rise of 23 per cent, while profits from operations increased to Rs. 15,290 mn, up 20 per cent. The company recognised Rs. 660 mn under exceptional items for the incremental impact of new labour codes and third quarter net profit was Rs. 4,030 mn, up 15 per cent. Higher dividend income and cost efficiencies supported the results.
Asset quality remained strong with gross stage three assets at one point nine one per cent and net stage three assets at one point zero six per cent, supported by a provision cover of 45 per cent. Gross and net non performing assets were two point six nine per cent and one point seven three per cent respectively. Return on assets (ROA) was two point six seven per cent for the nine month period and capital adequacy stood at 19.1 per cent.
Group companies continued to perform with the asset management business reporting AUM of Rs. 861,950 mn and consolidated profit from asset management at Rs. 1,390 mn. Royal Sundaram reported gross written premium of Rs. 33,840 mn, and Sundaram Home Finance recorded disbursements of Rs. 49,110 mn with profit at Rs. 2,120 mn. The board declared an interim dividend of Rs. 16 per share, equivalent to 160 per cent.