Sundaram Finance on Monday reported a 7% year-on-year decline in its net profit to Rs 340 crore for the second quarter ended September 30.
Revenue from operations of the Chennai-based non-banking finance company (NBFC) went up by 16% to Rs 1,601.17 crore during the quarter under review. Interest income rose 25% to Rs 1,373 crore.
Despite these gains, total expenses surged 27% year-on-year to Rs 1,147 crore, impacting the profitability. Finance cost of the lender went up to Rs 811 crore in Q2FY25, compared with Rs 613 crore during the year-ago period.
Total assets of the lender stood at Rs 48,058 crore as of September 2024 quarter, compared with Rs 40,106 crore in the same quarter last year.
Gross stage-3 assets, loans that are overdue for over 90 days, as on September 2024 stood at 1.62%, against 1.86% as of September 2023. Net stage-3 also improved to 0.89% from 1.08%.
On a consolidated basis, Sundaram Finance net profit grew 24% to Rs 406 crore during Q2FY25 while revenue from operations rose 22% to Rs 2,085 crore.
Shares of Sundaram Finance on Monday closed 3% higher at Rs 5,000 on the National Stock Exchange.