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Sundaram Finance Q3 net up 45%, Auto News, ET Auto

Chennai: Truck lender Sundaram Finance saw Q3 net profit rise by 45% for the quarter ended December, 2020 at Rs 242 crore, as compared to Rs 167 crore registered in the corresponding period last year, driven by pick up sales of passenger cars, tractors, construction equipment vehicles, light commercial vehicles and used commercial vehicles have led to the revival, and except mid and heavy commercial vehicles.

Its MD TT Srinivasaraghavan said, “Compared to the scenario in the first two quarters of the year, Q3 saw a revival in most of our business segments, except Mid and heavy commercial vehicles. Passenger Cars, Tractors and Construction Equipment segments did particularly well in Q3.”

Disbursements for the third quarter rose 8.5% to Rs 4,307 crore YoY. Net Income increau 7% YoY, and assets under Management stood at Rs 31,226 crore in December 2020, as compared to Rs 30,502 crore in December, 2019. Net NPA (Stage III) stood at 1.59% (2.79%) in this quarter. Deposit base grew by 10% YoY at Rs 4,112 crore.

Rajeev Lochan, MD designate said, “Any adaptation will bring challenges, there will be continuity by the way we have built this platform. In the markets we operate and the asset class we have and the vibrancy will continue for the next several years. Our ethics will continue for the next few years.” Its deputy MD Harsha Viji added “The long-term story is very positive, however, for the next six months the watchword is caution. There is a need to maintain caution till the portfolio quality comes up.” Its board of directors have declared an interim dividend of Rs 12 per share FY 2020-21. Shares of Sundaram Finance ended up 0.5% at Rs 1,889 apiece on BSE.

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