Non-banking finance company (NBFC) Sundaram Finance Ltd (SFL), a key player in commercial vehicle and car finance segments, has registered a net profit of Rs 226.74 crore for the year ended March 31, 2010. The company had recorded a net profit of Rs 150.73 crore in the previous financial year.
Disbursements of the Chennai-based NBFC increased by 29% to Rs 5,845 crore as against Rs 4,540 crore. The net NPA stood at an industry best of 0.45% as against 0.75%. The board of directors, which met here on Friday, has recommended a final dividend of 40% (Rs 4 per share).
TT Srinivasaraghavan, managing director, Sundaram Finance Ltd said, “The highlight of the year for the industry was the revival of the commercial vehicle sector in the second half of the year and the strong growth in the car segment. We achieved a 51% growth in disbursements in the medium and heavy commercial vehicle (M&HCV) segment, against the industry growth of 33%, resulting in significant market share gains during the year. We also achieved a strong 25% year-on-year growth in the car finance segment.”
Sundaram Finance opened 50 new branches during the year, taking the total branch network to over 500, across the country. As part of this pan-India expansion, the company expanded its presence into new locations in the northern and eastern regions.
“The general tone for the business is optimistic and most indicators, including the recovery in the commercial vehicle and car segments, are positive. It is to be hoped that the irrational exuberance of a few years ago, which led to excess capacity creation in the CV segment, will not be repeated.
?Uncertainties in terms of global events and volatility in commodity and oil prices are things to watch out for, while domestically, inflation continues to be a worry. As always, the monsoon will have an important bearing on overall growth,? said Srinivasaraghavan.