Sundaram Finance Q4 net up 43% at Rs 299 cr

CHENNAI: Non banking finance company Sundaram Finance registered a 43% rise in its net profit for the quarter ended March 31, 2022 at Rs 299 cr as compared to Rs 209 cr registered in the corresponding period last year.

Disbursements for Q4 ended 31st March 2022 went up 13% to Rs 3751 cr against Rs 3305 cr in the same period the previous year. Adjusting for the pandemic induced ECLGS scheme, disbursements in Q4 FY22 grew 16% over Q4 FY21.

Net profit for the full year ended 31st March 2022 went up 12% to Rs 903 cr as compared to Rs 809 cr in the full year ended 31st March 2021. Disbursements for FY22 recorded a growth of 13% to Rs 13,275 cr as compared to Rs 11,742 cr registered in FY21.

Harsha Viji, Executive VC, Sundaram Finance said, “Overall economic activity improved in FY22 after a difficult Q1 due to Wave 2 of the pandemic, and demand remained robust across segments in the rest of the year. We regained share across most asset classes and grew our core business by 23% year-on-year.”

Rajiv Lochan, MD, Sundaram Finance said, “With the pandemic seemingly behind us thanks to robust vaccination and improving immunity, we go into FY23 with tailwind from a strong close to FY22. While geopolitical tensions globally and consequent inflation domestically create near-term macroeconomic uncertainty, we are geared up to extend our market share across all asset classes. Apart from our traditional strengths in commercial vehicle and passenger car segments, the areas we have diversified and grown in the last few years – construction equipment, tractors and farm equipment and SME financing – are strong growth drivers for us going forward.”

On the revival in the rural market, Rajiv said, “Good monsoon this year, a strong procurement and demand coming back will lift the rural sentiment.” To a query on hiring, he said “We added 300 people in FY22 and expect to add another 400-500 people this year.” The assets under management stood at Rs 29,532 cr as on 31st March 2022 as against Rs 30,882 cr as on 31st March 2021. The deposit base stood at Rs 4103 cr as on 31st March 2022, a net accretion of Rs 82 cr over 31st March 2021.

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