Companies

Sundaram Finance posts 16 per cent rise in Q1 net profit at ₹192 crore

Our Bureau Chennai | Updated on August 10, 2021

Interest income grew marginally to ₹856 crore

Sundaram Finance has reported a 16 per cent growth in its standalone net profit at ₹192 crore for the quarter-ended June 30, 2021 compared with a net profit of ₹166 crore in the year-ago quarter, aided by lower expenses.

The NBFC’s interest income grew marginally to ₹856 crore in June 2021 quarter as compared to ₹845 crore in the year-ago quarter, while total income stood at ₹956 crore compared with ₹952 crore.

Total expenses for the first quarter of this fiscal stood at ₹702.5 crore as against ₹733 crore a year ago.

Total disbursements for Q1FY22 grew to ₹2,060 crore as compared to ₹929 crore in Q1FY21. With a net accretion of ₹57 crore, the deposit-base stood at ₹4,078 crore as of June 2021 quarter.

The second wave of Covid-19 disrupted operations through the first quarter and customers were deeply impacted by the pandemic. Northern, western and central regions were impacted in the early part of this window and most regions in south India were in lockdown till nearly the end of June 2021, according to a statement.

Pursuant to the RBI’s notification on Resolution Framework 2.0 related to advances to customers, assets totaling ₹88 crore, about 0.31 per cent of principal outstanding, were restructured in June 2021. The total restructured assets were ₹1,395 crore, about 4.87 per cent of principal outstanding as on June 30, 2021.

NPAs

As on June 30, 2021, the firm’s gross NPAs and net NPAs stood at 4.59 per cent and 3.38 per cent respectively compared with 2.78 per cent and 1.79 per cent in the year-ago quarter.

The assets under management stood at ₹29,823 crore as on June 30, 2021 as against ₹29,580 crore as on June 30, 2020.

Sundaram Home Finance continued to face sustained downturn in the housing market in the south, and in particular Tamil Nadu. However, profit for Q1FY22 grew to ₹40 crore as against ₹34 crore in Q1FY21.

Published on August 09, 2021

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