Sundaram Finance has reported a remarkable performance for the fourth quarter of the fiscal year 2024-25. The company's net profit for the quarter ending March 2025 stood at ₹553 crore, marking a significant 106% increase compared to ₹268 crore in the same quarter of the previous year. This substantial growth in profitability is primarily attributed to the absence of exceptional losses, which amounted to ₹91.7 crore in Q4 FY24.

The company's total revenue for the quarter rose by 4.8% year-on-year, reaching ₹2,259 crore, up from ₹2,156 crore in the corresponding quarter last year. This increase was supported by steady asset performance and a notable surge in other income, which jumped to ₹41.17 crore from just ₹1.38 crore in the same period of the previous year.

Dividend Declaration

In a move to reward its shareholders, Sundaram Finance's Board has recommended a final dividend of ₹21 per share for the financial year 2024-25. This brings the total dividend payout for the year to ₹35 per share, including the ₹14 interim dividend paid in February. The final dividend, if approved by shareholders, will be paid on or after July 24, 2025.

Stock Market Reaction

Following the announcement of the impressive quarterly results and the generous dividend declaration, shares of Sundaram Finance experienced a positive movement. The stock rose to an intraday high of ₹5,415.45, marking a 2.5% gain over the previous close of ₹5,280.95. At 2:57 PM on the day of the announcement, the stock was trading 1.5% higher at ₹5,359.90 on the BSE.

Board Reappointment

In addition to the financial results, the Board of Sundaram Finance has approved the reappointment of Mr. Ganesh Lakshminarayan as an Independent Director for a further five-year term starting August 12, 2025. This reappointment is subject to shareholder approval and reflects the company's commitment to strong corporate governance and experienced leadership.

Conclusion

Sundaram Finance's robust performance in Q4 FY25, highlighted by a doubling of net profit and a substantial dividend payout, underscores the company's strong financial health and commitment to shareholder value. The positive market response further indicates investor confidence in the company's strategic direction and future prospects.

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