Sundaram Finance Q4 net profit rises 43% to ₹299 cr.

Sundaram Finance Q4 net profit rises 43% to ₹299 cr.

Business


Non-Banking Finance Company Sundaram Finance has registered a 43% rise in its standalone net profit for the fourth quarter ended March at ₹299 crore.

During the period under review, revenue from operations contracted to ₹940 crore from ₹968 crore, while disbursements grew 13% to ₹3,751 crore. Adjusting for the pandemic induced ECLGS scheme, disbursements grew 16% over the year-earlier period, it said in a statement.

Assets under management contracted to ₹29,532 crore from ₹30,882 crore, due to covid-led lockdown, while deposit base was up by ₹82 crore to ₹4,103 crore.

“Overall economic activity improved in FY22 after a difficult first quarter due to wave 2 of the pandemic, and demand remained robust across segments in the rest of the year,” said Harsha Viji, executive vice chairman.

“We regained share across most asset classes and grew our core business by 23% year-on-year, closed the year with best-in-class asset quality levels despite adversity, and delivered double digit profit growth. This balance, consistent with our philosophy of Growth with Quality & Profitability (GQP), provides us confidence and optimism as we head into FY23,” Mr. Viji added.

On the business forecast, Rajiv Lochan, MD said “While geopolitical tensions globally and consequent inflation domestically create near-term macroeconomic uncertainty, we are geared up to extend our market share across all asset classes while continuing to ensure industry-best asset quality & continued delivery of the Sundaram experience.”

Going forward, Sundaram Finance believes that construction equipment, tractors and farm equipment and SME financing are going to be strong growth drivers.

On a consolidated basis, Sundaram Finance net profit for FY22 rose to ₹1,173 crore from ₹1,165 crore.

The consolidated results included the results of its standalone subsidiaries Sundaram Home Finance, Sundaram Asset Management and joint venture company Royal Sundaram General Insurance.

The Board recommended a final divided of ₹10 per share. The company had paid an interim dividend of ₹10 per share earlier.



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