Sundaram Finance reports 13.9% rise in Q4 profit

Net profits for the year ending March 31, 2016 stood at Rs. 477 crore.

CHENNAI: Non-banking finance company Sundaram FinanceBSE 1.02 % has recorded a 13.9 per cent rise in its fourth quarter net profits ending March 31, 2017 at Rs. 139 crore.

The city-based company had clocked net profits at Rs. 122 crore during the corresponding quarter of previous year, a top official said.

For the full year ending March 31, 2017, the net profits stood at Rs. 495 crore.

The profit for the year ending March 31, 2017 is not comparable to previous year, which includes a one-time profit of Rs. 40.64 crore arising from the sale of equity shares in its subsidiary BNP ParibasBSE 1.48 % Sundaram Global Securities Operations Pvt Ltd.

Net profits for the year ending March 31, 2016 stood at Rs. 477 crore.

The disbursements during the January-March 31, 2017 quarter grew to Rs. 3,413 crore from Rs. 2,893 crore registered during same period of previous year.

Total disbursements for the year ending March 31, 2017 grew by 15 per cent to Rs. 13,196 crore as compared to Rs. 11,444 crore registered during same period of last year.

The Board has recommended a final dividend of Rs. 6.50 per share. Along with the interim dividend of Rs five per share, the total dividend for 2016-17 is Rs. 11.50 per share.

“We have achieved a healthy growth in both top and bottom line, notwithstanding the difficult market conditions – impacted by weak replacement buying, uncertainty surrounding the implementation of BSIV emission and demonetisation,” Sundaram Finance managing director TT Srinivasaraghavan told reporters here.

The company “foresaw” the bumpy ride ahead of the Medium and Heavy Commercial Vehicle sector and “planned” on broad-based growth which helped overcome the sluggishness in the segment.

“Last year, a lot of disbursements growth came from LCVs, tractors and construction equipment. What is particularly heartening is that it has been quality growth”, he said.

He said the contribution of tractors and construction equipment segments went up to 11 per cent in 2016-17 as compared to 9 per cent in the previous year.

For 2017-18, he said, “we see growth opportunities in construction equipment space driven by the Government’s push on rural spending and building roads”.

On the demerger of non-financial services investments of Sundaram Finance Ltd.BSE 1.02 %, he said the company obtained a “no-objection letter” from the National Stock Exchange and also received “approval” from Competition Commission of India.

“Necessary steps are being taken to file an application with the National Company Law Tribunal for approval”, he said.

Following the demerger, Sundaram Finance Holdings Ltd would be listed on the stock exchange and all the shareholders of the Sundaram Finance would receive one share of SFHL free of cost, for every share held in SFL.

“The entire process is expected to be completed by second quarter of this year”, he said.

[“source-ndtv”]

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