Sundaram Finance Q4 PAT rises 60% YoY

Sundaram Finance reported 59.8% jump in net profit to Rs 209.20 crore on 6.7% rise in total income to Rs 1017.80 crore in Q4 FY21 over Q4 FY20.

May 31, 2021 01:05 IST capital market

Profit before tax in Q4 FY21 stood at Rs 263.32 crore, up by 59% from Rs 165.57 crore in Q4 FY20.

Disbursements for Q4 FY 2020-21 recorded a growth of 13% 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 31 March 2021 as against Rs 29,936 crore as on 31 March 2020, representing a year-on-year (YoY) growth of 3%.

Pursuant to RBIs notification on restructuring of advances to MSME customers, restructured assets totaled Rs 1,307 crore, about 4.42% of principal outstanding.

Gross stage III assets as on 31st March 2021 stood at 1.84% with 46% provision cover as against 2.47% with provision cover of 34% as on 31st March 2020. Net stage III assets as of 31st March 2021 closed at 1.01% against 1.65% as on 31st March 2020.

Gross NPA and Net NPA as on 31 March 2021 stood at 2.28% and 1.35%, respectively when compared to 2.77% and 1.92% as on 31 March 2020.

Cost to income closed at 31.8% in Q4FY21 as against 34.9% in Q4FY20. The deposit base stood at Rs 4,021 crore as on 31 March 2021, a net accretion of Rs 345 crore.

Capital Adequacy Ratio stood at 22.1% (Tier I - 15.2%) as of 31 March 2021 compared to 18.4% (Tier I - 13.2%) as of 31 March 2020.

The NBFCs consolidated net profit increased by 6.1% to Rs 253.94 crore on 0.5% rise in total income to Rs 1338.14 crore in Q4 FY21 over Q4 FY20.

The company recorded 24.4% jump in consolidated net profit to Rs 1002.04 crore on 12.2% rise in total income to Rs 5316.74 crore in FY21 over FY20.

Harsha Viji, executive vice chairman, 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.?

On the outlook for the year, Rajiv Lochan, managing director, 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. Given our learnings over the past year and our investments in technology and digitization, we are ready to tackle the challenges created by the pandemic as activity resumes.

The board of the company has recommended a final dividend of Rs 6 per share on the equity shares of the company.

Sundaram Finance offers financing for commercial vehicles, cars & utility vehicles, tractors and farm equipment, construction equipment, SME finance and a range of working capital products for financing diesel, tyres, insurance as well as working capital for SMEs. Through its subsidiaries and group companies, the company offers home finance, loans against property, mutual funds and investment management solutions and the full range of general insurance products and services. It has a nation-wide presence of nearly 600 branches.

The scrip rose 0.09% to currently trade at Rs 2499.90 on the BSE.

Powered by Capital Market - Live News

Related Story

Open Free Demat Account (Rs699)