Sundaram Finance net up 60% to Rs 209 crore

The assets under the management stood at Rs 30,882 crore as on March 31, 2021, as against Rs 29,936 crore, representing growth of 3%.

Sundaram Finance on Friday registered a 60% rise in net profit to Rs 209 crore for the fourth quarter against Rs 131 crore in Q4 FY20.

The disbursements recorded 13% growth to Rs 3,305 crore as compared to Rs 2,930 crore registered in the corresponding quarter of the previous year.

The assets under the management stood at Rs 30,882 crore as on March 31, 2021, as against Rs 29,936 crore, representing growth of 3%.

Executive vice-chairman Harsha Viji said, “While the first quarter of last year was almost a complete washout due to the national lockdown in response to the Covid-19 pandemic, we saw a strong recovery in the second half led by the tractor, tipper and construction equipment segments.”

“Our double-digit disbursements growth in fourth quarter is a clear indication that we were seeing business coming back to the pre-Covid levels.”Its gross NPA and net NPA stood at 2.28% and 1.35%, respectively, compared to 2.77% and 1.92%, respectively. The cost to income closed at 31.8% in Q4FY21 as against 34.9% in Q4FY20.On the outlook for the year, Rajiv Lochan, MD, Sundaram Finance, said, “We had planned for the growth momentum of the fourth quarter to continue into this year, but the intensity of the second wave and ensuing lockdowns have created uncertainty in the environment, with our immediate focus being on the safety of our employees and customers.”The board of the company has recommended a final dividend of Rs 6 per share (60%) on the equity shares of the company subject to the approval of shareholders at the ensuing annual general meeting. This was in addition to Rs 12 per share (120%) interim dividend for FY21 declared on January 20,  2021.