Sundaram Finance posts Rs 131 crore net profit for March quarter

For the full 2019-20, the company registered a net profit of Rs 723.95 crore.

Sundaram Finance on Friday reported a net profit of Rs 131 crore for the March 2020 quarter. The non-banking financial company's net profit in the corresponding quarter of the previous financial year had stood at Rs 675 crore.

Sundaram Finance said these two numbers are not comparable on a like-to-like basis as net profit for the fourth quarter of 2018-19 included an exceptional income of Rs 522 crore on account of sale of shares in its general insurance subsidiary Royal Sundaram.

Its revenue from operations during the March 2020 quarter increased 7 per cent to Rs 942 crore as compared to Rs 884 crore in the year-ago same period, it said in a regulatory filing.

For the full 2019-20, the company registered a net profit of Rs 723.95 crore. The net profit had stood at Rs 1,126 crore for the year ended March 31, 2019.

"However, the net profit of the previous year included an exceptional one-time income of Rs 522 crore on account of sale of shares in Royal Sundaram and, hence, the profit numbers of the two years are not comparable on a like-to-like basis," it added.

Revenue from operations during the year increased by 16 per cent to Rs 3,842 crore, from Rs 3,321 crore registered in the corresponding period of the previous year.

Gross receivables stood at Rs 35,088 crore as on March 31, 2020, against Rs 33,447 crore as on March 31, 2019, registering a growth of 5 per cent.

The company's board has recommended a final dividend of Rs 3 per share, it added.

Gross and net stage-3 assets (those loans where credit risk increases to a level considered credit-impaired) as on March 31, 2020, stood at 2.47 per cent and 1.65 per cent, respectively, Sundaram Finance said.

The company said it has appointed Rajiv Lochan as the director of strategy, with effect from June 3.

Lochan has been on the board as an independent director for the past few years.

T T Srinivasaraghavan, managing director of Sundaram Finance Ltd, said, "We live in the time of great uncertainty and the overall outlook for the economy is not promising. The first half of the year is likely to be muted but a major thrust on infrastructure spending and a favourable monsoon could revive sentiments in the later part of the year."

Sundaram Finance Group's services include financing for commercial vehicles, passenger cars and construction equipment. It also offers specially designed working capital products such as fuel finance and tyre finance.

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