The Hindu Business Line : Sundaram Finance net at Rs 170.59 cr

Sundaram Finance Ltd has reported a net profit of Rs 170.59 crore for 2005-06 compared to Rs 76 crore for the previous year, but last year's net profit includes Rs 88 crore that the company made from a sale of stake in its subsidiary, Sundaram AMC.

(In October 2005, BNP Paripas Asset Management Company picked up a 49.9 per cent stake in Sundaram AMC for Rs 100 crore.)

The board of Sundaram Finance has recommended a dividend of Rs 13.5 a share (135 per cent) , which includes a `special dividend' of Rs 5.

Last year, the company's disbursed loans of Rs 3,422 crore, compared with Rs 2,859 crore in the previous year— a growth of 20 per cent.

At a press conference here, the company's Managing Director, Mr T. T. Srinivasaraghavan, said that the net NPA had slid to 0.36 per cent from 0.39 per cent earlier.

Sundaram Finance also lends for purchase of tyres and diesel, the latter through a `fleet card' scheme.

Loans under these heads grew to Rs 101 crore and Rs 130 crore respectively, compared to Rs 28 crore each in the previous year.

On the outlook for the current year, Mr Srinivasaraghavan said, "with diesel price hike seeming imminent, prospects for the commercial vehicles industry would appear to be muted."

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