Non-banking finance company Sundaram Finance Ltd has recorded net profit for the quarter ending March 31, 2019 at Rs 675 crore.
Non-banking finance company Sundaram Finance Ltd has recorded net profit for the quarter ending March 31, 2019 at Rs 675 crore. The city-based firm had registered net profit at Rs 138 crore a year ago. For the January-March 2019 period, revenue from operations increased to Rs 881 crore from Rs 788 crore. For the year ending March 31, 2019, net profit surged to Rs 1,126 crore from Rs 563 crore registered last fiscal.
The net profit clocked in FY 2018-19 includes an “exceptional income” of Rs 522 crore, on account of sales of shares in Royal Sundaram in fourth quarter. Revenue from operations for the year ending March 31,2019 rose to Rs 3,398 crore from Rs 2,806 crore. Commenting on the financial performance, company Managing Director T T Srinivasaraghavan said crisis in the non-banking finance space dominated the space in 2018-19. “While Medium and Heavy Commercial Vehicle segments saw runaway growth in first half (2018-19), it is just dropped in second half (2018-19),” he told reporters.
On the asset quality, he said, despite being “turbulent time”, asset quality has held well and overall recovery as well as NPA (non-performing assets) were “very robust.” The company had raised Rs 10,200 crore as term funds in 2018-19 from banks, mutual funds, insurance companies and others in form of non-convertible debentures. In 2019-20, he said, the company expects to raise Rs 11,000 crore through various fund options including securitization to fund the business growth. “We are confident of raising this funds. We are looking at prudent growth. We are concentrating on asset quality and profitability,” he said.
On the outlook for 2019-20, he said with the new government in place at the Centre, it is reasonably expected that the thrust on infrastructure would continue. “However, uncertainities surrounding market liquidity, interest rates, imminent introduction of BSVI emission norms and global oil prices, render forecasts difficult,” he said.