Non-Banking Finance Company Sundaram Finance reported a 12 per cent increase in its net profit at ₹903 crore for the full year ended March 31, 2022, as compared to ₹809 crore in FY21, aided by good growth in disbursements, cost control measures and lower provisions.
Disbursements for FY22 recorded a growth of 13 per cent to ₹13,275 crore as compared to ₹11,742 crore recorded in FY21. “We regained share across most asset classes and grew our core business by 23% year-on-year, closed the year with best-in-class asset quality levels despite adversity, and delivered double-digit profit growth,” said Harsha Viji, Executive Vice Chairman, Sundaram Finance.
The pandemic caused a lot of stress in the company’s core customer segments. But the company said it managed to pull back on its asset quality, which has traditionally been its strength.
Gross Stage 3 assets as of March 31, 2022, stood at 2.19% as against 1.84% as of March 31, 2021. Net stage 3 assets for the same period closed at 1.07% as against 1.01% as on 31 st March 2021.
“FY22 was a little bit of a rollercoaster year. Q1 was impacted by the second wave, but we bounced back in Q2. There were some regulatory changes in Q3 and Q4 that had the threat of third wave and geopolitical issues. But, we could overcome all these challenges. We have closed the year with a lot of tailwinds, positivity and optimism. Overall, it was a good year as far as our growth with quality and profitability (GQP) philosophy that we follow is concerned,” Rajiv Lochan, Managing Director, Sundaram Finance said while discussing the performance of the company.
The deposit base of the company stood at ₹4,103 crore as of March 31, 2022, a net accretion of ₹82 crore over March 31, 2021.
Lochan said the company added 300 people in FY22 and expects to add another 400-500 people in FY23 as it has entered this fiscal with a lot of optimism and better growth prospects.
For the quarter ended March 31, 2022, the company reported a 43 per cent rise in its net profit at ₹299 crore as compared with ₹209 crore in the year-ago period.
Disbursements went up 13 per cent to ₹3,751 crore as compared to ₹3,305 crore in the same period the previous year. Adjusting for the pandemic induced ECLGS scheme, disbursements in Q4 FY22 grew 16% over Q4 FY21.
The Board has recommended a final dividend of ₹10 per share (100%) which along with the interim dividend of ₹10 per share taking the total dividend for the year to ₹20 per share (200%).
The assets under management stood at ₹29,532 crore as of March 31, 2022, as against ₹30,882 crore last year.
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