The Board of Directors of Sundaram Finance Ltd. (SFL) approved the audited standalone and consolidated financial results for the year ended March 31, 2025, at its meeting held on May 26, 2025, in Chennai.

Key highlights from the results include:

• Standalone Performance (FY25):

  • Assets Under Management (AUM) grew by 17% to ₹51,476 crores as on March 31, 2025, compared to ₹43,987 crores as on March 31, 2024.
  • Disbursements for FY25 grew by 9% to ₹28,405 crores, with Q4FY25 disbursements up 11% to ₹6,873 crores.
  • Net Interest Income grew by 22% to ₹2,793 crores in FY25.
  • Profits from Operations increased by 29% in FY25.
  • Profit After Tax (PAT) closed at ₹1,543 crores, a 6% rise over FY24. After excluding an exceptional item in FY24, PAT rose 16% in FY25.
  • Gross Stage 3 assets stood at 1.44% (1.26% as of March 31, 2024) and Net Stage 3 assets at 0.75% (0.63% as of March 31, 2024).
  • Gross NPA (as per RBI norms) was 2.17% and Net NPA was 1.38%.
  • Cost to income ratio improved to 30.80% in FY25 from 34.68% in FY24.
  • Return on Assets (ROA) was 2.85% for FY25 (3.18% for FY24) and Return on Equity (ROE) was 16.30% (17.51% for FY24).
  • Capital Adequacy Ratio stood at a comfortable 20.4% (Tier I – 17.4%).
  • The Company declared a final dividend of ₹21/- per share (210%).

• Consolidated Performance (FY25):

  • The AUM in lending and general insurance businesses grew by 18% to ₹78,145 crores as on March 31, 2025.
  • The AUM of the asset management business stood at ₹71,826 crores as on March 31, 2025.
  • Consolidated Profit After Tax grew by 31% to ₹1,879 crores in FY25.

• Group Company Performance (FY25):

  • Sundaram Asset Management: Closed the year with AUM of ₹71,826 crores (over 80% in equity). Consolidated profits were ₹154 crores.
  • Royal Sundaram General Insurance: Reported a Gross Written Premium (GWP) of ₹4,065 crores, a 6% growth. Profit after tax was ₹133 crores.
  • Sundaram Home Finance: Disbursements grew by 30% to ₹6,517 crores. Profit was ₹245 crores.

• Management Commentary:

  • Harsha Viji, Executive Vice Chairman, stated, "Team Sundaram has delivered 17% growth in AUM to ₹51,476 crores, asset quality with net stage 3 at 0.75% vs 0.63% last year and profits from operations growing 29% year-on-year. Our Group companies in asset management, general insurance and home finance have continued their trajectory from FY24 and recorded strong results. We continue to rely on our time-tested approach of steady and sustainable growth with best-in-class asset quality and consistent profitability."
  • Rajiv Lochan, Managing Director, noted that FY25 was marked by subdued demand due to various factors including extreme summer, general elections, and global volatility. Despite uncertainties, the company gained market share across nearly all major asset classes, resulting in 17% AUM growth, and a laser-sharp focus on controlling costs led to a 29% growth in profits from operations.

• Future Outlook:

  • Rajiv Lochan expects macroeconomic sentiments to improve on the rural front due to forecasted above-normal monsoons and strong procurement, and on the urban front due to improved government spending on infrastructure and income tax benefits. He anticipates private consumption and private sector capex to pick up, positioning the company for continued steady growth, best-in-class asset quality, and resilient profitability.