Sundaram Finance Q2 net drops 29% to ₹192 cr.

Disbursements rising since May: MD

CHENNAI, TAMIL NADU, 30/05/2016: T.T. Srinivasaraghavan, Managing Director, Sundaram Finance Ltd, at a press conference in Chennai on May 30, 2016. Photo : Bijoy Ghosh

Sundaram Finance Ltd.reported a 28.6% drop in second quarter profit to ₹192 crore against ₹269 crore a year earlier.

The previous year’s second quarter profit had included a one-time income of ₹53 crore representing profit on sale of equity shares in Sundaram Finance Holdings Ltd. Hence, it was not comparable, said the NBFC.

Income from operations saw a marginal dip to ₹993 crore (₹994 crore). Disbursements contracted to ₹3,174 crore (₹3,832 crore). Assets Under Management (AUM) rose to ₹30,572 crore (₹30,256 crore).

Deposits stood at ₹3,883 crore, registering a net accretion of ₹207 crore.

“Despite the first two months of the year having been a total washout, we managed to reach over 80% of our disbursements in Q2,” said T. T. Srinivasaraghavan, MD. “Every succeeding month since May has witnessed an upward trend and that is something heartening. While there is a lot of positivity around the festive season, we have to watch if this momentum sustains in coming months.”