Sundaram Finance Holdings (SF Holdings) has sold 1.5 per cent stake held in Sundaram Clayton Ltd for ₹127 crore. 

As a result, SF Holdings’ stake in Sundaram Clayton now stands at 9.74 per cent. 

“As per Ind AS practice, the realised gain has been accounted for through OCI (other comprehensive income). Using the proceeds of the divestments, the Board of SF Holdings has declared a special dividend of 20 per cent,” according to a statement. 

During the quarter ended December 31, 2021, SF Holdings made further investments in its composites business. It made a follow-on investment of €2 million in Mind S.r.l., Italy, which focuses on carbon fibre components for the automotive industry in Europe. 

Over the previous 18 months, SF Holdings had already invested €2.60 million in Mind S.r.l. The company now has a 48.86 per cent stake in the Italian firm. It has also promoted a green-field operation to manufacture carbon-fibre components in Tiruvallur, near Chennai, with an initial investment of ₹19.50 crore in Sundaram Composite Structures Private Ltd. 

Meanwhile, SF Holdings reported a 22 per cent increase in consolidated net profit at ₹33.63 crore for the December 2021 quarter over the ₹27.65 crore in the year-ago quarter. Consolidated profit for the nine months ended December 2021 grew 128 per cent to ₹84.49 crore, as compared to ₹37.06 crore in the same period the previous year. 

SF Holdings, a demerged investment arm of Sundaram Finance and listed on the National Stock Exchange, primarily operates as a holding company owning a portfolio of automotive businesses including foundries, wheels, brakes, turbochargers, axles, and distribution of spare parts. 

As a result, dividends from portfolio companies form a substantial part of the financial results. Dividend received from portfolio companies was at ₹29.38 crore for the period ended December 31, 2021, as against the total dividend of ₹14.13 crore received in FY21. 

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