Sundaram Finance posts net profit at Rs724cr in Q4FY20; stock up 2%

The Board of the Company has recommended a Final Dividend of Rs3 per share.

Jun 01, 2020 10:06 IST India Infoline News Service

Non-Banking Finance Company Sundaram Finance Ltd., has registered a Net Profit of Rs723.95cr for the year ended March 31, 2020. The company had registered net profit of Rs1,126cr for the year ended 31st March 2019. However, the net profit of the previous year included an exceptional one time income of Rs522cr on account of sale of shares in Royal Sundaram and hence the profit numbers of the two years are not comparable on a like to like basis.

Revenue from operations for the year ended 31st March 2020 increased 16% to Rs3842cr from Rs3321cr registered in the corresponding period of the previous year. The Gross Receivables stood at Rs35088cr as on 31st March 2020 as against Rs33447cr as on 31st March 2019 registering a growth of 5%.

The stock is currently trading at Rs1,270.65, up by Rs24 or 1.93% from its previous closing of Rs1,246.65 on the BSE.

The Board of the Company has recommended a Final Dividend of Rs3 per share.

Gross and Net Stage 3 assets as on 31st March 2020, stood at 2.47% and 1.65%, respectively.

Sundaram Finance has appointed Rajiv C Lochan as Director - Strategy on the Board of the company with effect from 3rd June 2020. Rajiv Lochan has been on the Board as an independent director for the last few years. He has 2 decades of experience in the field of management, especially in the areas of finance, social sector, and public health.

On the Outlook for the year, T. T. Srinivasaraghavan, MD, Sundaram Finance Ltd., said, “We live in a time of great uncertainty and the overall outlook for the economy is not promising. The first half of the year is likely to be muted, but a major thrust on infrastructure spending and a favourable monsoon could revive sentiments in the later part of the year.”

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