The Hindu Business Line : Sundaram Fin posts Rs 76-cr net profit

The company had reported a net profit of Rs 55.62 crore in 2003-04. The numbers for the two years are, however, not comparable, since the merger of Lakshmi General Finance (LGF) with Sundaram Finance took effect last year.

The company's disbursements increased 12 per cent from Rs 2,104 crore to Rs 2,360 crore. The disbursements of the merged entity (including LGF) were Rs 2,887 crore.

Mr T.T. Srinivasaraghavan, Managing Director, Sundaram Finance, said that the disbursements were broadly in the ratio of 60 per cent towards commercial vehicles (trucks) and 30 per cent towards car finance.

Asked if there was a slowdown in industry growth, against the backdrop of a 38 per cent growth in 2003-04, Mr Srinivasaraghavan, said "It may be tempting to say there is a slowdown, when the industry growth has been of the order of 21 per cent last year. But you have to factor in the "base effect". Although the first two months of this fiscal also seem to be slow, I would be reluctant to judge this at this time."

Explaining the company's performance, Mr Srinivasaraghavan, said, "There was an emphasis on profitability and book quality. We took a conscious decision not to take on certain kinds of assets." The company's net non-performing assets were down to 0.45 per cent on the increased asset base.

On the speculation about Sundaram Finance converting into a bank, he said , "We have no such plans".

The company's capital adequacy was at 14.82 per cent as against the regulatory requirement of 12 per cent.

Mr Srinivasaraghavan said that the company would target a business growth of between 10-15 per cent in this fiscal.

The Board of Directors recommended a final dividend of 15 per cent for 2004-05, taking the total dividend for the year to 75 per cent.

The Board also appointed Mr S. Viji as the new Chairman of the company, in place of T.S. Santhanam who passed away recently.

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