SF Holdings consolidated net rises 30% to ₹41 cr.

Sundaram Finance Holdings Ltd. (SF Holdings) reported first-quarter consolidated profit after tax rose 30% to ₹41 crore.

Total income rose to ₹19.98 crore from ₹18.55 crore, an increase of 8%, SF Holdings said in a statement.

SF Holdings primarily operates as a holding company owning a portfolio of automotive businesses, including foundries, wheels, brakes, turbochargers, axles and distribution of spare parts.

As a result, the dividend from portfolio companies comprises a substantial part of the financial results. It received dividend of ₹40.20 crore from portfolio companies.

After a long lull in growth from 2018-19, SF Holdings’ portfolio companies are seeing a strong comeback in the automotive sector when compared with last year. The combined revenue of the top five associate companies increased to ₹1,960 crore (₹1,369 crore), it said.

Consolidation of Holdings

SF Holdings said that after the approval of National Company Law Tribunal, two of its portfolio companies, Flometallic India Pvt. Ltd. and Brakes India Pvt. Ltd. merged on July 27.

As a result of the merger, SF Holdings stake in Brakes India has increased from 14.37% to 23.57%, making Brakes India an associate company.

Flometallic India has an installed foundry capacity of 29,000 tonnes and Brakes India, together with its subsidiaries has an installed foundry capacity of 162,000 tonnes. Thus making it the largest ferrous foundry operation in the country.

The foundry supplies to export markets, captive consumption of portfolio companies, as well as the wider domestic market.

The company continues to look for opportunities to consolidate holdings, it said.

Appointment of directors

On Wednesday, T.T. Srinivasaraghavan, chairman, relinquished his office. Harsha Viji was elevated as chairman, while Ananth Ramanujam was inducted as an additional director.

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Printable version | Sep 21, 2022 4:33:29 am |