Sundaram Finance has reported a net profit of ₹131 crore for the fourth quarter ended March 31, 2018 as against ₹139 crore for corresponding quarter last year. However, these numbers are not comparable as demerger of non financial services investments of Sundaram Finance into Sundaram Finance Holdings became operative in fourth quarter of 2017-18.

Revenue for fourth quarter increased by 16.47 per cent to ₹700 crore (₹601 crore). For year ended March 31, 2018, the company reported a net profit of ₹533 crore (after considering the effects of demerger as against ₹461 crore (adjusted net profit on demerger) for previous year.

Disbursement increased by 18 per cent to ₹15,632 crore (₹13,196 crore) and gross receivables stood at ₹28,648 crore (₹24,034 crore), a growth of 19 per cent. The company’s board recommended a final dividend of ₹7 per share. This along with interim dividend of ₹5 per share declared earlier in the year takes the total dividend of the year to ₹12 per share, says a company press release.

The company’s focus on maintaining superior asset quality ensured that the gross and Net NPAs during the year reduced further to 1.29 per cent and 0.50 per cent respectively as against 1.54 per cent and 0.55 per cent respectively in previous year.

During 2018-19, Sundaram Finance mobilised fresh deposits aggregating to ₹451 crores with renewal clocking almost 80 per cent. Deposits outstanding as on March 31, 2018 stood at ₹2,499 crore, the release said.

TT Srinivasaraghavan, Managing Director, Sundaram Finance, said, notwithstanding the various disruptions faced by the automotive sector in first half of financial year, the company was able to achieve a ‘strong’ growth in disbursements of 18 per cent “as we deepened our presence in newer geographical areas and market segments, apart from growth in our core segments.”

While concentrating on 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,’ he said.

Fund raising

Sundaram Finance 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 ₹5,545 crores across various tenors. It also issued several tranches of commercial paper aggregating to ₹14,405 crore and raised resources of ₹3,879 crore through securitisation and assignment of receivables.

The company expects to raise ₹10,000 crore in FY19 through a mix of various debt instruments / securitisation to fund the business growth. On the Bombay Stock Exchange, the company’s share price closed at ₹1,758, up by 1.50 per cent.

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