Sundaram Finance Ltd (SFL) has reported a 16.5 per cent drop in its standalone profit after tax (PAT) at ₹202 crore for the quarter ended December 31, 2021, when compared with a PAT of ₹242 crore in the year-ago quarter. 

The leading NBFC’s interest income fell 5 per cent at ₹857 crore (₹904 crore in the year-ago quarter), while total income stood at ₹961 crore when compared with ₹1,046 crore. Total expenses were lower at ₹694 crore as compared to ₹726 crore in Q3 FY21. 

In the December quarter, total disbursements declined 11 per cent at ₹3,843 crore as compared to ₹4,334 crore in December 2020 quarter. “Adjusting for the pandemic induced ECLGS scheme, disbursements in Q3 FY22 grew 3 per cent over Q3 FY21,” said a company statement.

“Covid-impacted customer segments, in particular staff & route bus, tourist bus and school bus operators, tourist taxi operators. Small market load CV operators are still struggling through the process of recovery based on the pandemic’s evolution and consequent actions to contain it,” the statement added.

The deposit base stood at ₹4,117 crore as of December 31, 2021, a net accretion of ₹97 crore over March 31, 2021.

Under RBI’s notification on Resolution Framework 2.0 related to advances to customers, assets totaling ₹781 crore, about 2.68 per cent of the loan outstanding, were restructured during nine months of this fiscal. The total restructured assets were ₹2,089 crore, about 7.16 per cent of the loan outstanding as of December 31, 2021.

As of December 31, 2021, gross stage, three assets stood at 3.39 per cent with provision cover of 39 per cent when compared with 3.45 per cent with 39 per cent provision cover as of September 30, 2021. Net stage 3 assets closed at 2.09 per cent as against 2.12 per cent as of September 30, 2021.

The assets under management stood at ₹29,796 crore as of December 31, 2021, as against ₹29,811 crore as of September 30, 2021. The company has declared an interim dividend of ₹10 per share (100 per cent).

As per RBI’s circular of November 12, 2021, gross NPA was 7.71 per cent, of which 4.06 per cent was below 90 days past due as of December 31, 2021. Excluding this, gross NPA would have been 3.65 per cent as against 3.85 per cent as of September 30, 2021. “The company’s underlying business risk has not undergone any material change,” it said.

For the nine months ended December 31, 2021, the company’s PAT stood at ₹605 crore as against ₹600 crore in the same period the previous year.

“We expect Q4 to see a recovery to normalcy which will enable pick-up in activity and credit off take. We are well-poised to capture growth opportunities across all asset classes in Q4,” said Rajiv Lochan, Managing Director, Sundaram Finance Ltd.

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