Sundaram Finance declares ₹12 per share dividend, PAT up 15% in Q3
2 min read . Updated: 14 Feb 2023, 07:43 PM IST
Premium- With a market capitalization of ₹26,057.19 Cr, Sundaram Finance Ltd. is a non-banking financial company (NBFC) that operates in the financial services industry.
With a market capitalization of ₹26,057.19 Cr, Sundaram Finance Ltd. is a non-banking financial company (NBFC) that operates in the financial services industry. Since its founding in 1954, Sundaram Finance has developed into one of India's most reputable and diversified financial services groups, offering financing for commercial vehicles, cars and utility vehicles, tractors and farm equipment, construction equipment, small- and medium-sized enterprise (SME) financing, as well as a variety of working capital products for financing diesel, tyres, insurance, and working capital for SMEs.
The company has said in a stock exchange filing that the Board of Directors “has declared an Interim Dividend of ₹12 per share (120%) for the financial year 2022-23 which will be paid on 3rd March, 2023 to those Shareholders whose names stand on the Registrar of Members of the Company on the Record date 17th February, 2023."
On a consolidated basis, the company reported net revenue from operations of ₹1409.72 Cr compared to ₹1286.26 Cr in Q3FY22, representing a growth of 9.60% YoY. The company recorded a net profit of ₹332.84 Cr in the quarter ended December 2022 against ₹288.83 Cr recorded in the quarter ended December 2021, representing a growth of 15.24% YoY. The company's profit before tax (PBT) of ₹424.87 Cr in Q3FY23 compared to ₹346.94 Cr in the year-ago quarter, representing a YoY growth of 22.46%. The EPS of Sundaram Finance stood at ₹30.20 in Q3FY23 compared to ₹26.21 in the year-ago quarter.
“Economic activity continued to gain strength during the 3rd quarter. Our disbursements were the best during any quarter and our AUM has recorded strong growth. Our asset quality continued to improve and remains best in class. Profits during the quarter increased by 20% as compared to the same period last year. Overall, it has been a year where we have decisively put the vagaries of the pandemic behind us and accelerated our Growth with Quality and Profitability," said Harsha Viji, Executive Vice Chairman.
“The third quarter witnessed a bumper festival season and we have been able to strengthen our market share across geographies and asset classes. Looking ahead, as inflation eases and government capital expenditure crowds in private investment, we expect growth in the economy to pick up. Our investments in technology & data coupled with our traditional strengths of customerobsession and people-centricity will provide us the impetus to scale up our business the Sundaram way," said Rajiv Lochan, Managing Director.
The shares of Sundaram Finance closed today on the NSE at ₹2,344.55 apiece level, up by 0.62% from the previous close of ₹2,330.15. Post the Q3 earnings of Sundaram Finance, the research analysts of HDFC Securities maintain a BUY rating with a revised target price of INR2,635.
