Sundaram Finance , a prominent non-banking financial company, has reported strong financial results, including record disbursements and significant growth across key metrics.

Financial Highlights

Record Disbursements

Sundaram Finance achieved record total disbursements of ₹15,423 crores, demonstrating strong market demand for the company's financial services. The quarterly disbursements rose to ₹8,113 crores, marking an 18% increase compared to the same period in the previous year.

Profitability Improvement

The company's profit after tax saw a substantial improvement, increasing by 27% to reach ₹823 crores. This significant growth in bottom-line performance indicates effective cost management and operational efficiency.

Asset Growth

Sundaram Finance's assets under management (AUM) grew by 15.3% to ₹55,419 crores, reflecting the company's expanding business operations and increased market share in the non-banking financial sector.

The robust growth across disbursements, profitability, and assets under management suggests that Sundaram Finance has been successful in expanding its business operations while maintaining strong financial performance. This may be attributed to factors such as increased lending activities, improved operational efficiency, or favorable market conditions in the non-banking financial sector.

Sundaram Home Finance , a subsidiary of Sundaram Finance , has announced its entry into the Karnataka market, marking a significant expansion of its Emerging Business segment. The Chennai-based company has set an ambitious target of Rs 60.00 crore in disbursements for its first year of operations in the state.

Expansion Strategy

The company plans to establish a strong presence in Karnataka's Tier II and III towns, with an initial expansion phase that includes setting up 8-10 emerging business branches across the state. This move is part of Sundaram Home Finance's broader strategy to tap into the potential of smaller towns and cities.

Emerging Business Segment

Sundaram Home Finance's Emerging Business vertical focuses on two key areas:

1. Small business loans up to Rs 20.00 lakh
2. Affordable housing finance with loans up to Rs 40.00 lakh

This segment has already shown promising results in other states. The company currently operates over 50 branches under the Emerging Business category in Tamil Nadu and Andhra Pradesh. Last year, it successfully disbursed Rs 200.00 crore in this segment alone.

Karnataka's Potential

D Lakshminarayanan, Managing Director of Sundaram Home Finance, expressed optimism about the company's prospects in Karnataka. He stated, "We hope to establish a strong presence in Karnataka's Tier II and III towns over the next 12-18 months."

The company's decision to expand into Karnataka is driven by the state's potential in the affordable housing finance sector. Lakshminarayanan cited government support as a key factor contributing to the growth of this segment in the state.

Market Outlook

The entry of Sundaram Home Finance into the Karnataka market is expected to intensify competition in the region's housing finance sector, particularly in smaller towns and cities. This move could potentially lead to increased access to affordable housing finance for residents in these areas.

As the company sets its sights on establishing a foothold in Karnataka, it will be interesting to see how this expansion impacts its overall growth and market share in the coming years. The success of this venture could pave the way for further expansion into other states, strengthening Sundaram Home Finance's position in the national housing finance market.