CHENNAI: Non-banking financial company Sundaram Finance on Monday posted a 7% decline in profit after tax (PAT) during the quarter ended Sept 30, 2024 at Rs 340 crore against Rs 366 crore in the corresponding quarter of last year.
PAT was flat at Rs 648 crore during H1 FY25 and H1 FY24 primarily due to a shift in the timing of dividend income last year, the company said in a statement.
Dividend income was at Rs 43 crore during H1 FY25 as against Rs 181 crore in H1 FY24, it added.
Disbursements for H1 FY25 grew by 3% to Rs 13,768 crore as compared to Rs 13,430 crore registered in H1 FY24. The gross and net NPA, as per RBI’s asset classification norms for NBFCs, are 2.39% and 1.55% respectively, as on Sept 30, 2024 as against 2.89% and 2% as of Sept 30, 2023. The assets under management (AUM) stood at Rs 48,058 crore as on Sept 30, 2024.
“Economic activity in Q2 was well below expectations with the monsoons disrupting consumption and govt spending being slower post the general elections. The tepid economic activity was exacerbated by growing concerns on asset quality in the microfinance and unsecured lending sectors,” Rajiv Lochan, managing director, Sundaram Finance.
“Looking ahead, we remain cautiously optimistic of a recovery in economic activity in H2 as domestic consumption and private sector capital expenditure resume and the central govt’s infrastructure spend and policy agenda gather pace,” he added
PAT was flat at Rs 648 crore during H1 FY25 and H1 FY24 primarily due to a shift in the timing of dividend income last year, the company said in a statement.
Dividend income was at Rs 43 crore during H1 FY25 as against Rs 181 crore in H1 FY24, it added.
Disbursements for H1 FY25 grew by 3% to Rs 13,768 crore as compared to Rs 13,430 crore registered in H1 FY24. The gross and net NPA, as per RBI’s asset classification norms for NBFCs, are 2.39% and 1.55% respectively, as on Sept 30, 2024 as against 2.89% and 2% as of Sept 30, 2023. The assets under management (AUM) stood at Rs 48,058 crore as on Sept 30, 2024.
“Economic activity in Q2 was well below expectations with the monsoons disrupting consumption and govt spending being slower post the general elections. The tepid economic activity was exacerbated by growing concerns on asset quality in the microfinance and unsecured lending sectors,” Rajiv Lochan, managing director, Sundaram Finance.
“Looking ahead, we remain cautiously optimistic of a recovery in economic activity in H2 as domestic consumption and private sector capital expenditure resume and the central govt’s infrastructure spend and policy agenda gather pace,” he added
You may also like
Chinese woman discovers true identity after colleagues' comments prompt DNA test
'Hindu lives don't matter for opposition': BJP attacks Congress for 'silence' on attacks on Hindu temples in Canada
US election 2024: Your questions answered on 2024 Trump vs. Harris election; when is the voting day, how voting counting conducted and other
Abha card: Does Aabha card also provide insurance up to Rs 5 lakh, what is the benefit of getting it made?
Bridal Beauty Guide: If you are getting married, take care of your skin like this, so that your face shines on the wedding day
