Sundaram Finance Holdings posts 22% yoy increase in consolidated net profit for Q3FY22

3 Feb 2022 , 04:02 PM

Sundaram Finance Holdings Ltd. has registered a consolidated net profit of Rs33.63cr for the quarter ended December 31, 2021, an increase of 22% over the Rs27.65cr for the corresponding period of the previous year.

Consolidated profit for the nine months ended December 31, 2021, went up 128% to Rs84.49cr, as compared to Rs37.06cr registered in the corresponding period of the last financial year.

SF Holdings primarily operates as a holding company owning a portfolio of automotive businesses including foundries, wheels, brakes, turbo chargers, axles, and distribution of spare parts. As a result, dividend from portfolio companies forms a substantial part of the financial results.

The dividend received from portfolio companies was at Rs29.38cr for the period ended December 31, 2021, as against the total dividend of Rs14.13cr received during the financial year 2020-21.

Divests select holdings
During the quarter ended December 31, 2021, SF Holdings sold a 1.50% stake held in Sundaram Clayton Limited for a total gain of Rs124.66cr, bringing its stake down to 9.74%. As per Ind AS practice, the realized gain has been accounted through OCI.

Special Dividend
Using the proceeds of the divestments, the Board of SF Holdings has declared a Special Dividend of 20%.

Further investment in carbon fibre
During the quarter ended December 31, 2021, SF Holdings made further investments in its composites business. It made a follow-on investment of Euro 2 million in Mind S.r.I., Italy, which focuses on carbon fibre components for the automotive industry in Europe.

Prior to this, over the previous 18 months, SF Holdings had already invested Euro 2.60 million in Mind S.r.I. The company now has a 48.86% stake in the Italian firm. It has also promoted a green-field operation to manufacture carbon fiber components in Tiruvallur District, Tamil Nadu, India with an initial investment of Rs19.50cr in Sundaram Composite Structures Private Limited.

Sundaram Finance Holdings Ltd istock trade on Thursday ended at Rs83.50 per share up Rs0.20 or 0.24% on the NSE.