Saturday, May 26, 2018

Sundaram Finance profit rises 15.7%

NBFC’s FY18 net at ₹533 crore; aims to raise ₹10,000 cr. this fiscal to fund growth

Sundaram Finance Ltd., a leading non-banking finance firm, reported a net profit of ₹532.95 crore for the year ended March 2018, registering a growth of 15.7% on a like-to-like basis.
This, after considering the effects of demerger of non-financial services investments into Sundaram Finance Holdings Ltd.
The company had registered ₹460.57 crore adjusted net profit, after accounting for demerger, in the previous year ended March 2017.
Disbursements for the year increased 18% to ₹15,632 crore, from ₹13,196 crore.
The gross receivables stood at ₹28,648 crore against ₹24,034 crore as on March 31, 2017, registering a growth of 19%. The board recommended a final dividend of ₹7 per share. This, along with the interim dividend of ₹5 per share declared earlier in the year, takes the total dividend to ₹ 12 per share.
The company reported a net profit of ₹131 crore for the quarter ended March 2018, compared with ₹139 crore for the corresponding quarter in the previous year.

‘Not comparable’

The fourth quarter numbers, however, are not comparable as the demerger of the non-financial services investments of Sundaram Finance into Sundaram Finance Holdings became operative in the fourth quarter of 2017-18. Income from operations for the fourth quarter under review increased 16.5% to ₹700 crore (₹601 crore).
The company said it was hoping to raise ₹10,000 crore in FY19 to fund business growth.
“While concentrating on our core markets and product segments, we see significant opportunities in the construction equipment, LCV (light commercial vehicles) and tractor segments and expect these to be strong growth drivers in FY19,” T.T. Srinivasaraghavan, MD, said.

Fresh deposits

During 2017-18, SFL mobilised fresh deposits aggregating to ₹450.53 crore. Renewal clocked 80%. Deposits outstanding as on March 31, 2018, stood at ₹2,499.33 crore. During the year, SFL raised term funding to the tune of ₹5,545 crore. The firm issued several tranches of commercial paper aggregating to ₹14,405 crore. It raised resources to the extent of ₹3,879 crore through securitisation and assignment of receivables.

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