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Sundaram Finance Reports Solid FY25 Performance, Anticipates Economic Recovery

Sundaram Finance Ltd (SFL), a leading Indian non-banking financial company (NBFC), has announced a 6% increase in its standalone profit after tax (PAT) for the fiscal year 2025 (FY25). This positive result comes amidst a period of cautious optimism regarding the Indian economy. The company's performance reflects its resilience and strategic focus, even as it acknowledges the ongoing impact of macroeconomic factors.

Key Highlights of FY25 Performance

• PAT Growth: A 6% rise in standalone PAT demonstrates the company's ability to maintain profitability despite external challenges.
• Improved Profitability: SFL has successfully navigated a complex economic landscape, showcasing improved operational efficiency and cost management.
• Slower Growth: While profitability improved, the company observed a more measured growth rate, indicative of a deliberate approach to risk management and sustainable expansion.
• Asset Quality: SFL continues to prioritize asset quality, maintaining healthy collection efficiencies and prudent lending practices.

Looking Ahead: Positive Macroeconomic Expectations

Sundaram Finance's management expressed confidence in the anticipated improvement in macroeconomic sentiments. Several factors contribute to this positive outlook:

• Government Initiatives: Ongoing government policies and infrastructure investments are expected to stimulate economic activity and create new opportunities for growth.
• Increased Consumer Spending: A gradual recovery in consumer confidence and spending patterns is anticipated, boosting demand for financial products and services.
• Improved Business Confidence: Renewed business optimism and investment decisions are expected to fuel economic expansion.

“We are encouraged by the signs of a potential economic turnaround,” stated a spokesperson for Sundaram Finance. “While challenges remain, we believe our prudent risk management practices, diversified portfolio, and strong customer relationships position us well to capitalize on the opportunities that lie ahead.”

Strategic Focus for Future Growth

Sundaram Finance is committed to:

• Technology Adoption: Investing in digital technologies to enhance customer experience, improve operational efficiency, and expand reach.
• Product Innovation: Developing innovative financial solutions to meet the evolving needs of its customers.
• Sustainable Lending: Prioritizing sustainable lending practices and supporting environmentally responsible projects.
• Talent Development: Attracting and retaining top talent to drive the company’s growth and innovation.

The company's focus on these strategic priorities underscores its commitment to long-term sustainable growth and value creation for its stakeholders. Sundaram Finance remains a key player in the Indian financial landscape, poised to benefit from the country's economic recovery and continued development.