Money & Banking

Sundaram Finance posts ₹192-crore profit in Q2

Our Bureau Chennai | Updated on November 06, 2020 Published on November 06, 2020

TT Srinivasaraghavan, MD, Sundaram Finance Ltd   -  Bijoy Ghosh

Leading NBFC Sundaram Finance Ltd has recorded a net profit of ₹192 crore for the second quarter ended September 30, 2020 as compared to ₹269 crore in the same period last year. Net profit of Q2 of the previous year included one-time income of ₹53 crore and hence the numbers are not comparable.

Income from operations stood at ₹993 crore during the period under review as against ₹994 crore in the year-ago quarter. The company disbursements were lower at ₹3,174 crore (₹3,832 crore a year ago).

For the half-year ended September 30, 2020, the company’s net profit stood at ₹358 crore as compared to ₹427 crore in the same period previous fiscal (not comparable due to the above-mentioned one-time income).

Income from operations for H1 of this fiscal stood at ₹1,941 crore (₹1,924 crore).

Assets under management stood at ₹30,572 crore as on September 30, 2020, up from ₹30,256 crore a year ago.

“Despite the first two months of the year having been a total washout, we managed to reach over 80 per cent of our disbursements in Q2. Every succeeding month since May has witnessed an upward trend and that is heartening. On the back of a bountiful monsoon and Government’s investment in infrastructure, the tractor and construction equipment segments have done particularly well,” said TT Srinivasaraghavan, MD, Sundaram Finance.

The company’s deposits have seen strong growth during H1 and stood at ₹3,883 crore as on September 30, a net accretion of ₹207 crore.

Gross NPA (stage III) stood at 2.14 per cent and Stage III (Net of ECL) stood at 1.17 per cent as on September 30, 2020.

Accounts that were not NPA as of August 31, 2020, have not been classified as NPA for the half-year ended September 30, 2020, in line with the apex court’s directive. Had the company classified such borrower accounts as Stage III on September 30, 2020, the Stage III/Stage III (Net of ECL) would have been at 2.51 per cent and 1.47 per cent, respectively.

Striking a note of caution, Srinivasaraghavan said: “while there is a lot of positivity around the festive season, we have to wait and watch if this momentum sustains, in the coming months.”

 

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Published on November 06, 2020
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