Rajiv Lochan, Managing Director, Sundaram Finance
Sundaram Finance Ltd (SFL), the Chennai-based NBFC, reported improved profitability but slower growth in disbursement in FY25 due to extreme summer, general elections and a dull festive season.
The fourth quarter saw an uptick as against the prior three quarters, the company’s managing director, Rajiv Lochan, told newspersons. “We expect macro-economic sentiments to improve this year as private consumption improves, private sector capex will likely pick up,” he added.
In FY25, standalone net profit was up 6 per cent to ₹1,543 crore. After excluding exceptional items in FY24 of ₹133 crore, PAT rose 16 per cent in the fiscal. Net interest income grew 22 per cent to ₹2,793 crore (₹2,284 crore).
Disbursements for FY25 grew 9 per cent to ₹28,405 crore (₹26,163 crore). In FY24, the disbursements were up nearly 25 per cent. “We expect things to improve this year,” he said.
According to Lochan, the customer outlook in FY25 was, by and large, cautious and the burden of economic growth was supported by government capex, which ended up at levels lower than the previous year. Given the uncertainties in the external demand, the company’s focus on market share has remained clear. “We gained market share across major asset classes resulting in 17 per cent growth in assets under management (AUM). Our focus on controlling costs — borrowing, operating and credit — resulted in 29 per cent growth in profits from operations,” he said.
AUM grew 17 per cent to ₹51,476 crore as on March 31, 2025 (₹43,987 crore).
The company has declared a final dividend of ₹21 per share (210 per cent).
Group companies
Lochan said the group companies continued to perform well. The asset management business closed the year with AUM of ₹71,826 crore (over 80 per cent in equity) and consolidated profits from the asset management businesses were at ₹154 crore (₹112 crore).
Royal Sundaram reported a Gross Written Premium of ₹4,065 crore (₹3,825 crore), representing a 6 per cent growth. Sundaram Home Finance saw disbursements growing at 30 per cent to ₹6,517 crore, he said.
Looking ahead, Lochan expected macro-economic sentiments to improve on the rural front due to above-normal monsoons forecasted by the IMD and strong procurement. On the urban front, improvement in government spending on infrastructure and income tax benefits announced in the Budget should improve the sentiments, he said.
The company’s share on the NSE closed at ₹5,359, up ₹82.50 (1.56 per cent).
Published on May 26, 2025
