Non-banking finance company Sundaram Finance will lay focus on penetrating market segments like financing light commercial vehicles and by deepening its presence in the country in 2013-14, a top official today said.
Society of Indian Automobile Manufacturers forecast for 2013-14 is not particularly rosy, Sundaram Finance, Managing Director, T T Srinivasaraghavan told reporters here.
"Those are challenges we are faced with. We believe in 2013-14 also like 2012-13, going to be lot of headwinds. So, we have to depend on our own abilities to find opportunities within the available market spaces. And then to find growth either penetrating into new market segments or through increasing market share," he said.
The company for the financial year ending March 31, 2013 reported a 15.4 percent growth in net profit at Rs 410 crore as compared to Rs 355 crore registered during the same period of previous year, he said.
Besides, the company was able to increase its disbursements by six percent to Rs 9,991 crore for the financial year ending March 31, 2013 from Rs 9,432 crore.
"Last year (2012-13) we crossed one milestone. Our networth gone past the Rs 2,000 crore mark", he said.
On the proposal to deepen the company's presence in the country, he said the company has about 100 stores in Maharashtra, Gujarat, and close to 50 in Punjab, New Delhi, Hyderabad and Uttaranchal.
"We will be looking at opening up of new branches. We will also deepen our presence in North, West and Central India where we already have a strong presence. Actually, it will be a combination of many things...", he said.
To a query, he said: "We have recently entered into LCV segment. There is a lot of headroom to grow in the LCV space.
Volumes are large in this space and we believe that opportunity presents itself for growth".
Noting that the company's asset quality continues to be the best in the industry, he said: "The company last year gained market share in medium and commercial vehicle space around 10 percent."
The board of Sundaram Finance at its meeting today have recommended a final dividend of Rs 4.50 per share. This along with interim dividend of Rs 4.50 per share, takes the total dividend for financial year 2012-13 to Rs 9 per share.
The company had issued bonus shares in the ratio of 1:1 during financial year 2012-13.
Also read: Sundaram Finance board recommends 40% final dividend 
