Sundaram Finance reports 45% rise in Q3 net profit at Rs 242 crore

Sundaram Finance.

City-headquartered Sundaram Finance has registered a 45 per cent increase in its net profit for the quarter ended December 31, 2020, the company said on Friday.

The net profit of the non-banking finance company stood at Rs 242 crore compared to Rs 167 crore in the corresponding period last year. Disbursement during this period was Rs 4307 crore, a gain of 8.5 per cent against the Rs 3,968 crore for the Q3 ended December 31, 2019, a press release from the company said.

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The net income for Q3 went up 7 per cent to Rs 1,045 crore from Rs 976 crore in the same period last year. The deposit base stood at Rs 4,112 crore as on December 31, 2020 while it was Rs 3,722 crore during the same period in 2019. The net NPA (Stage-III) stood at 1.59 per cent.

As per the Supreme Court order on those availing themselves of moratorium benefit, accounts that were not NPA themselves of moratorium benefit, as of August 31, 2020 have not been classified so far for the nine months ended December 31, 2020, the release said.

The court directive was that the borrowers who have availed moratorium benefit and have not declared non-performing assets till August 31, 2020 cannot have the NPA so declared till further orders, it said.

Commenting on the performance of the company, its managing director TT Srinivasaraghavan said compared to the scenario in the first two quarters of the year, Q3 saw a revival inmost of the business segments of the firm except M & HCVs (medium and heavy commercial vehicles). "Passenger cars, tractors and construction equipment segments did particularly well in Q3," he was quoted assaying in the release.

On the outlook, he said with the strong infrastructure push announced in the Central budget, the company expects the growth momentum to pick up in the next few quarters.