Sundaram Finance Ltd's Q4FY25 Quarterly Results

Result Summary

• Sundaram Finance Ltd reported a 2.3% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Mar (Q4FY25). On a year-on-year (YoY) basis, it witnessed a growth of 39.9%.
• Its expenses for the quarter were down by 8.7% QoQ and up 39.6% YoY.
• The net profit increased 3.7% QoQ and decreased 7.1% YoY.
• The earnings per share (EPS) of Sundaram Finance Ltd stood at 24.3 during Q4FY25.

Financial Statments for Q4FY25

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Sundaram Finance Ltd is a notable player in the financial services sector in India. As a diversified financial services company, it offers a wide array of services, including vehicle finance, asset management, general insurance, and home finance. The company's operations are deeply entrenched in offering tailored financial solutions to both individuals and businesses. Sundaram Finance has a strong market presence, especially in vehicle finance, where it provides loans for commercial vehicles, cars, and construction equipment. Recent developments in the industry have seen a shift towards digital transformation, with companies like Sundaram Finance enhancing their digital platforms to improve customer experience and operational efficiency. However, specific recent developments for Sundaram Finance are not available within the data provided.

Revenue

For the fiscal quarter ending Q4FY25, Sundaram Finance Ltd reported a total income of ₹2,157.27 crores. This reflects a decrease of 2.3% when compared to the previous quarter (Q3FY25), where the total income stood at ₹2,207.35 crores. On a year-over-year (YoY) basis, there was a significant increase of 39.9% in total income, up from ₹1,541.67 crores in Q4FY24. This substantial YoY growth in revenue indicates a strong performance over the year, despite the quarter-on-quarter (QoQ) decline. The fluctuation in total income could be attributed to various market conditions or operational adjustments within the quarter.

Profitability

In terms of profitability, Sundaram Finance Ltd's profit before tax (PBT) for Q4FY25 was ₹540.61 crores, which is a decrease of 10.0% from the previous quarter's PBT of ₹600.77 crores. Compared to the same quarter last year, the PBT showed a modest increase of 1.4% from ₹533.27 crores in Q4FY24. The tax expense for the quarter was ₹151.97 crores, slightly higher by 1.6% from Q3FY25's tax of ₹149.59 crores, and a notable increase of 24.5% from the previous year's Q4 tax expense of ₹122.07 crores. Consequently, the profit after tax (PAT) for Q4FY25 was ₹472.41 crores, which reflects a 3.7% increase from Q3FY25's PAT of ₹455.47 crores but a 7.1% decrease compared to Q4FY24's profit of ₹508.62 crores. This data suggests fluctuations in profitability metrics, potentially influenced by changes in operational efficiency, cost management, and tax impacts over the periods analyzed.

Operating Metrics

The earnings per share (EPS) for Sundaram Finance Ltd in Q4FY25 was ₹24.30, showing a significant decrease of 41.2% from ₹41.30 in Q3FY25, and a decrease of 38.2% from ₹39.30 in Q4FY24. This decline in EPS underscores a reduction in shareholder value compared to both the previous quarter and the same quarter last year. Total expenses for Q4FY25 were recorded at ₹1,374.87 crores, which is a reduction of 8.7% from ₹1,505.17 crores in Q3FY25. However, when compared to Q4FY24, there is a 39.6% increase in total expenses from ₹984.70 crores. These shifts in operating metrics, including EPS and expenses, could reflect strategic financial management decisions and external economic factors impacting the company's operations during these periods.