Chennai-based leading NBFC Sundaram Finance is expected to raise Rs 10,000 crore in FY19 through a mix of various debt instruments as well as through securitisation to fund the business growth.
During FY18, the company had raised term funding from banks, mutual funds, insurance companies and others in the form of non-convertible debentures and term loans to the tune of Rs 5,545 crore, across various tenors.
The company also had issued several tranches of commercial paper aggregating to Rs 14,405 crore. Sundaram Finance also raised resources to the extent of Rs 3,879 crore through securitisation and assignment of receivables.
The company registered a net profit of Rs 131 crore for the quarter ended March 31, 2018, compared to Rs 139 crore for the corresponding quarter last year. However, these numbers are not comparable as the demerger of the non-financial services investments of Sundaram Finance into Sundaram Finance Holdings became operative in the fourth quarter of 2017-18, a company statement said.
For the whole year, the company has registered a net profit of Rs 532.95 crore compared to Rs 460.57crore (adjusted net profit on demerger) for the previous year, thus registering a growth of 15.72% on a like to like basis.
Disbursements for the year increased 18% to Rs 15, 632 crore from Rs 13,196 crore. The gross receivables stood at Rs 28,648 crore as on March 31, 2018, against Rs 24,034 crore as on March 31, 2017, registering a growth of 19%.
TT Srinivasaraghavan, managing director, Sundaram Finance, said, “Notwithstanding the various disruptions faced by the automotive sector in the first half of the financial year, we were able to achieve a strong growth in disbursements of 18% as we deepened our presence in newer geographical areas and market segments, apart from growth in our core segments. As always, the focus has been on growth, quality and profitability (GQP).”
On the outlook for the year, Srinivasaraghavan said, “While concentrating on our core markets and product segments, we see significant opportunities in the construction equipment, LCV and tractor segments and expect these to be strong growth drivers in FY19.”
The company’s sustained focus on maintaining asset quality ensured that the gross and net NPAs as on March 31, 2018, reduced further to 1.29% and 0.50%, respectively, against 1.54% and 0.55%, respectively, in the previous year.
During the year, Sundaram Finance mobilised fresh deposits aggregating to Rs 450.53 crore with renewal clocking almost 80%. Deposits outstanding stood at Rs 2,499.33 crore.
Set up in 1954, the Sundaram Finance Group’s services include financing for the entire range of commercial vehicles, passenger cars and construction equipment, as well as specially designed working capital products such as fuel finance and tyre finance. The company is also into home loans, mutual funds, non-life insurance, IT, BPO and distribution of a wide range of financial products and services. The company has over 600 branches spread across the country.