For the quarter ending March 31, 2022, Sundaram Home Finance booked a net profit of 44.9 per cent against the same period last financial year.
Sundaram Home Finance would strengthen its presence in real estate sector, according to a top official.
The wholly owned subsidiary of Sundaram Finance Ltd declared its financial results for the quarter ending March 31, 2022, Sundaram Home Finance booked a net profit of 44.9 per cent against the same period last financial year.
Around 100 frontline staff was hired by the company last year in tier II and tier III towns to support its expansion plans. Disbursements during the March 2022 quarter went up from Rs. 459.38 crore to Rs 794.11, an increment of Rs. 300 crore corresponding period last year.
MD, D Lakshminarayanan said, “the record disbursements in March this year is a clear sign of the resilience in the real estate sector. We have seen an uptick in business in Tier II and III towns in the Southern market, with the contribution from these geographies going up to around 70 per cent at the end of Q4 from about 55 per cent a year earlier”.
Further commenting on the financial performance he commented that the lending rates remained at ‘unprecedented’ low in the last couple of years and expect it to go up a few ‘notches’ this year. “Earlier this month, we saw the first rate hike in over two years. Despite the hike, the rates continue to be at attractive levels for the retail customer”, he said.
The company propose to add another 100 front end sales personnel in Tamil Nadu, North Karnataka, Andhra Pradesh and Telangana were it plans to set up 10 branches in various locations.
“We continue to remain bullish on the long term prospects of the sector. Sundaram Home Finance has established a strong presence in the South market.”, he said. “We believe that there is still a lot of untapped potential in these geographies and are confident of leveraging our brand, strong customer focus and the domain knowledge to grow in these markets especially in Tier II and III locations”, he said.
Lakshminarayanan feels that the affordable housing segment would remain one of the fastest growing verticals in the real estate sector. “We will further strengthen our presence in this segment and are confident of tapping into the opportunities in this space this year”, he said.
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