Sundaram Finance has achieved consistent growth and prioritized maintaining high-quality assets, despite challenges in its core commercial vehicle financing sector.

The company is planning to expand into the used vehicle market, supported by improved realizations and strong growth in its asset under management (AUM).

In the second quarter of FY25, the company experienced sluggish growth in its core business due to weak demand, with disbursements reflecting the weakest performance.

However, there is a positive outlook for the medium term, driven by increased activity from fleet operators, especially in the second half of FY25.

Sundaram Finance's housing loans have shown robust growth, and the asset management company (AMC) business continues to demonstrate steady asset growth.

The company maintains a healthy asset quality and sufficient provisions, with expectations of better customer and asset mix to support margins in the future.