Private sector lender Sundaram Finance has reported a net profit of ₹154 crore for the quarter ended September 30. It had posted a net profit of ₹153 crore in the same period last year. Higher finance costs and consequent margin pressures led to the flat growth in the bottomline.
Interest and hire-purchase income grew to ₹707 crore, compared with ₹582 crore, while total income from operations stood at ₹815 crore against ₹687 crore.
Its finance costs were higher at ₹427 crore (₹318 crore), and total expenses increased to ₹587 crore from ₹461 crore in Q2 of the previous fiscal. Profit before tax was ₹232 crore (₹230 crore).
Loan disbursements were up 12 per cent at ₹4,263 crore (₹3,797 crore).
“While asset growth and asset quality remained strong, margins came under some pressure during the quarter,” said TT Srinivasaraghavan, MD, Sundaram Finance.