Sundaram Home Finance has announced plans to raise more than Rs 6,000 crore to accelerate its growth in the current fiscal year.
An official stated that a mix of bank debt, debentures, fixed deposits, and NHB refinances will be used to raise the money.
Sundaram Home Finance's net profit for the January–March 2025 quarter increased by 26% to Rs 71.57 crore from Rs 56.80 crore in the same period the previous year.
A total of Rs 1,929 crore was disbursed during the reviewed quarter, as opposed to Rs 1,469 crore during the same period in the previous fiscal year. For the fiscal year that ended on March 31, 2025, the assets under management climbed from Rs 13,812 crore to Rs 17,470 crore.
On the outlook for the fiscal year, the city-based company's MD, D Lakshminarayanan, stated, "The emergence of small towns as an economic growth drive is throwing up a lot of new growth opportunities for us both in the prime home finance segment and the emerging business segment." We believe that the demand outlook for real estate remains positive, and we will continue to invest in branch expansion and hiring this year."
"We think that this year's growth will be driven by new expansion into more Tier II and III towns and further strengthening our presence in existing locations in smaller towns," the company said in a statement on Tuesday, as it consolidated its presence in the larger cities.
The company's Emerging Business division has paid out Rs229 crore for the fiscal year that ends on March 31, 2025. The network expansion in Tamil Nadu led to a notable increase in this segment in FY2025, which includes financing for affordable housing and small business loans.
"The Emerging Business segment has started well in the first phase, and we were able to record a more than 60% increase in disbursements last year as a result of branch expansion in small towns in Tennessee. This year, we will seek growth opportunities in the emerging business segment by expanding outside of Tamil Nadu," he stated.
"We are confident that the emerging business segment will grow faster this year as a result of our network expansion," he explained.
