Sundaram Home Finance Q3 net up 36% to Rs 56 cr, disbursements fall

Company optimistic about growth going forward, sees demand push from stamp duty reduction by states, softer prices by builders

Sundaram Home Finance Ltd, a wholly-owned subsidiary of Sundaram Finance Ltd, has posted a 36 per cent growth in net profit for the third quarter ended December 31, 2020 at Rs 56.24 crore, from Rs 41.31 crore a year ago.

Disbursements for Q3 stood at Rs 416.57 crore as compared to Rs 536.33 crore in the comparative period the previous year.

Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance said, “We have seen a revival of real estate markets across major metros and smaller towns. A few states have also driven demand revival through a reduction in stamp duty and premium. In addition, builders/developers have softened prices to liquidate stock. Interest rates are at an all-time low, making this quite unprecedented from a home buyer's perspective. We are nearing pre-Covid levels in terms of new business and that is a positive sign of growth coming back.”

 

The company’s deposit base stood at Rs 1,825 crore as on December 31, 2020.

Lakshminarayanan added, “We are witnessing renewed interest from builders in terms of new launches, across locations. From a residential housing perspective, demand for ready-to-move-in homes is the first one to take off. Affordable housing continues to grow at a fast pace with the demand continuing to be quite attractive.” 

The company raised over Rs 3,600 crore in the first nine months of the year through a mix of debt instruments, term lending from banks, fixed deposits and refinance from the NHB.