Sundaram Finance Holdings Ltd., consolidated net profit for the second quarter rose 72% to ₹33 crore on higher dividend receipts from portfolio companies.
SF Holdings primarily operates as a holding company owning a portfolio of automotive businesses, including foundries, wheels, brakes, turbo chargers, axles, and distribution of spare parts. As a result, dividend from portfolio companies forms a substantial part of the financial results, it said in a statement.
Driven by a strong recovery in the automobile sector, dividend received from portfolio companies stood at ₹68 crore for the half year ended September, against full year’s dividend of ₹41 crore received for FY22.
However, there are mixed signals on whether the momentum in automotive sector would continue into the second half of the financial year, the company said.
“We continue to consolidate our shareholding in core portfolio companies which primarily cater to the automotive business,” said chairman Harsha Viji.
