Business

Sundaram Finance Q1 net rises 18% to ₹226 crore

We have re-established our pre-pandemic growth trajectory with the highest-ever first quarter disbursements, says Harsha Viji, executive vice-chairman.

We have re-established our pre-pandemic growth trajectory with the highest-ever first quarter disbursements, says Harsha Viji, executive vice-chairman. | Photo Credit: BIJOY GHOSH

Non-banking finance company (NBFC) Sundaram Finance Ltd. has posted a 18% growth in standalone net profit for the first quarter to ₹226 crore.

Disbursements more than doubled to to ₹4,895 crore. Total revenue from operations dipped by almost 2% to ₹935 crore. Capital adequacy stood at 24.1%, the NBFC said in a statement.

“We have re-established our pre-pandemic growth trajectory with the highest-ever first quarter disbursements,” said Harsha Viji, executive vice-chairman.

“Overall economic activity continues to improve across all segments despite inflationary concerns and related interest rate hikes,” he said.

Assets under management rose to ₹30,552 crore (₹29,823 crore). The total restructured assets under Covid relief measures enabled by the RBI was ₹1,234 crore, about 4.07% of loan outstanding.

Gross & Net non-performing assets stood at 2.66% & 1.41% against 4.59% & 3.38% respectively.

“The first quarter is off to a strong start and to plan. We regained share across most asset classes and remain focused on extending our share in all markets,” said Rajiv C. Lochan, MD.

On the outlook, the company expects continued recovery in the commercial vehicles segment, especially medium & heavy commercial vehicles.

According to Mr. Lochan, the growth prospects for construction equipment, tractor and farm equipment as well as commercial lending continue to remain bright. Demand for passenger vehicles remains strong, constrained only by supply.

“Team Sundaram remains focused on ensuring our rightful market share in the segments & geographies we operate in while continuing to remain industry-best in asset quality performance & delivering the Sundaram experience to all our customers,” Mr. Lochan said.

Royal Sundaram General Insurance, a joint venture with Ageas of Belgium, posted Gross Written Premium of ₹798 crore, a increase of 20%. It reported loss of ₹34 crore against net profit of ₹83 crore due to net loss of ₹106 crore on fair value of equity investments.


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Printable version | Sep 15, 2022 3:30:58 pm | https://www.thehindu.com/business/sundaram-finance-q1-net-rises-18-to-226-crore/article65746225.ece