Sundaram Finance Ltd (SFL) managing director Rajiv Lochan said policy continuity, favourable monsoon and a vibrant festive season are expected to help revive consumer demand and momentum in the second half of the current fiscal.
“The government is continuing and there will be continuity on most policy issues,” he said at a news conference.
On the macroeconomic front, Lochan said the new government is expected to focus on economic growth and ensure continuity in infrastructure policies, while also working to contain inflation and create jobs.
He expects expanding consumption, improving exports and reviving private sector capital investment to remain priorities.
On the medium to long term outlook, he said: “Our primary goal is to gain market share in the geographies where we operate. If the market rises by 10% in a particular asset class, we want to capture 10% of that growth. If the market stagnates, we want to retain the same 10%. So, market growth will determine our overall growth.”
“We’ve been very focused on market share, which we think is much easier to control than chasing specific growth. That’s been a philosophy for many years and we’re just continuing with it,” he said.
During FY24, SFL recorded a 23% increase in standalone net profit, excluding exceptional items, to Rs 1,334 crore. Expenses grew 25% to Rs 2,616.3 crore. Assets under management grew 27% to Rs 4,398.7 crore.
Gross non-performing assets decreased 40 basis points to 1.26%, while net non-performing assets decreased 23 basis points to 0.63%. SFL reported a capital adequacy ratio of 20.5%.
Talking about growth, Lochan said, “In the M&HCV segment, we are recovering from the pre-Covid phase and are still a little short. In the retail CV and passenger vehicle segments, we have regained share. In the tractors and construction equipment segment, we have gained share by a large margin.”
“We are like a long-term marathon runner and will continue to run at a steady pace. We strive to balance growth, quality and profitability. This policy will continue,” he said.
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