Sundaram Home Finance profit zooms 24% to Rs. 53 cr
Sundaram Home Finance was confident of continuing its growth during the current financial year as the demand in real estate sector remains positive, a top official said on Friday.
image for illustrative purpose
Chennai: Sundaram Home Finance was confident of continuing its growth during the current financial year as the demand in real estate sector remains positive, a top official said on Friday.
The company, a wholly-owned subsidiary of non-banking finance company Sundaram Finance Ltd, has reported net profit at Rs 65.68 crore up by 23.8 per cent in FY 23 from Rs 53.05 crore registered in same period of last year. Disbursements during the quarter under review went up to Rs 1,222.46 crore from Rs 794.08 crore registered during corresponding quarter of last year.
"The demand in the real estate sector continues to be positive. We are confident of continuing our growth trajectory in FY24. Our growth will continue to be driven by expansion in tier III and IV towns this year," Sundaram Home Finance MD Lakshminarayanan Duraiswamy said.
For the year ending March 31, 2023 the net profit of the company grew to Rs 215.81 crore as compared to Rs 167.70 crore registered in same period of last year. Disbursements for the year ending March 31, 2023 rose to Rs 3,976.41 crore as compared to Rs 2,336.49 crore registered in the same period of last year.
Assets under management stood at Rs 11,005 crore as on March 31, 2023 as compared to Rs 9,281 crore as on March 31, 2022. Commenting about the company's performance during the financial year 2023, he said, "We achieved record disbursements of over Rs 500 crore in March this year. The year was also marked by our asset portfolio crossing a significant milestone of Rs 11,000 crore." "We also hired over 450 people in FY23. Overall it has been a strong growth year for us driven by demand in Tier II and III towns in southern market," he said. During the last financial year the company made its foray into small business loans segment wherein it is providing loans of up to Rs 20 lakh for working capital and business expansion.
The company has opened 10 branches in the first six months of the foray and has plans to open at least another 10 in the first half of the year. "The company achieved disbursements of close to Rs 10 crore in this segment in the first six months," it said. Lakshminarayanan said, "it has been a solid start to the small business loans segment and our plans are on track. We are getting strong positive feedback from small entrepreneurs and traders."
"Buoyed by this, we have chalked our further expansion in this segment during the first half of this year, wherein we will be doubling our exclusive branches and also hiring over a 100 people for this segment," he said.
