Sundaram Home Finance reported a net profit of INR 44 crore for Q2 FY2024, down from INR 59 crore in the same quarter last year, despite a significant rise in disbursements to INR 1,543 crore. For the first half of FY2024, net profits reached INR 111 crore, slightly lower than INR 117 crore in the previous year, while disbursements soared to INR 2,897 crore. The company's expansion into markets like Pune, Indore, and Belgaum aligns with its strategy to target Tier II and III towns, reflecting the growing demand for affordable housing and financial solutions.
Sundaram Home Finance, a subsidiary of Sundaram Finance Ltd, announced its financial results for the July-September 2024 quarter, showing a net profit of INR 44 crore. This figure reflects a decline from the INR 59 crore reported during the same quarter last year. Despite this drop in profits, the company has seen significant increases in disbursements, reaching INR 1,543 crore compared to INR 1,214 crore a year ago.
For the first half of the financial year ending September 30, 2024, Sundaram Home Finance posted net profits of INR 111 crore, down from INR 117 crore during the same period last year. However, total disbursements for the six-month period rose impressively to INR 2,897 crore, up from INR 2,317 crore registered in the corresponding half of the previous year. This positive trend in disbursements highlights the company's ongoing efforts to cater to a growing customer base.
A key aspect of Sundaram Home Finance's strategy is its expansion into new markets. Recently, the company opened new branches in Pune and Indore and extended its reach further within Karnataka by establishing a branch in Belgaum. This geographical expansion is a critical part of the company's growth plan, especially in Tier II and III towns, where demand for housing finance is increasing.
Managing Director D Lakshminarayanan noted that the company's strong disbursement growth is driven by consistent expansion into emerging markets. The Emerging Business segment, which includes small business loans and affordable housing financing, performed well, contributing INR 42 crore to the company's disbursements in the last quarter. This focus on smaller towns and the affordable housing sector aligns with broader trends in the Indian economy, where there is a rising need for more accessible housing and financial solutions.
Looking ahead, Lakshminarayanan expressed confidence in the company's growth for the rest of the financial year. He noted several factors that could drive continued success, including improved affordability, economic growth in smaller towns, and the opening of new branches outside the Southern market. The company is particularly optimistic about further developing its Emerging Business segment, which aims to support small businesses and promote affordable housing financing.
The growth in disbursements amid a challenging economic landscape demonstrates Sundaram Home Finance's resilience and adaptability. The company's strategic focus on smaller towns, combined with the growing demand for affordable housing, positions it well for future growth. As urbanisation continues and more people seek housing solutions, companies like Sundaram Home Finance are playing a pivotal role in shaping the financial landscape and meeting the needs of diverse communities across India.
In conclusion, while the latest profit figures may indicate some challenges, the overall growth in disbursements and strategic branching into untapped markets provide a hopeful outlook for Sundaram Home Finance as it aims to solidify its position in the competitive housing finance sector.
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