Sundaram Home Finance reported a 44.9% increase in net profit to ₹53.05 billion for the quarter ended March 31, compared to a year earlier.
Disbursements during the quarter increased to ₹794.11 billion from ₹459.38 billion.
The company said it had record payouts of more than £300m in March, the highest in its history. It hired about 100 frontline workers last year, mostly in Tier 2 and 3 cities, to support expansion plans.
The company “is optimistic about the long-term prospects of the sector and would continue to strengthen its presence in the real estate sector,” according to a senior official.
“The record payouts in March this year are a clear sign of the resilience of the real estate sector,” said Managing Director D. Lakshminarayanan. We’ve seen an increase in business in Tier 2 and Tier 3 cities in the southern market, with contribution from these regions increasing from about 55% last year to about 70% at the end of the fourth quarter.”
He said lending rates had remained at “unprecedentedly” low levels in recent years and expected them to rise several “notches” this year. “Earlier this month we saw the first rate hike in over two years. Despite the rate hike, interest rates remain at an attractive level for retail customers,” he said.
The company also plans to hire an additional 100 front-end sales representatives in Tamil Nadu, North Karnataka, Andhra Pradesh and Telangana, where it plans to set up 10 offices in Tier II and III locations.
We remain optimistic about the long-term prospects for the sector. Sundaram Home Finance has established a strong presence in the southern market,” he said. “We believe there is still a lot of untapped potential in these regions and are confident to leverage our brand, strong customer focus and industry knowledge to grow in these markets, particularly in Tier 2 and Tier 3 locations “, he said.
Mr. Lakshminarayanan said the affordable housing segment will remain one of the fastest growing sectors in the real estate sector. “We will continue to strengthen our presence in this segment and are confident of capitalizing on opportunities in this area this year,” he said.