Sundaram Finance December quarter net falls 17%
Sundaram Finance on Monday posted a 16.53% drop in its net profit for the third quarter ended December to Rs 202 crore, compared with Rs 242 crore in the year-ago period. Total revenue from operations contracted 8.23% to Rs 958 crore from Rs 1,044 crore. The company declared an interim dividend of Rs 10 per share.
Harsha Viji, executive vice chairman, said, “Overall, economic activity improved in Q3 and demand remained robust across segments. However, supply-side issues, including the global semiconductor chip shortage, caused a decline in industry volumes across multiple asset classes. Medium and heavy commercial vehicles witnessed robust growth albeit on a smaller base. We anticipate broad-based recovery across all segments in Q4.”
Disbursements were at Rs 3,843 crore, compared to Rs 4,334 crore. The assets under management stood at Rs 29,796 crore as on December 31, 2021 as against Rs 29,811crore as on September 20, 2021.
Rajiv Lochan, MD, said, “…We expect Q4 to see recovery to normalcy which will enable pick-up in activity and credit off take. We are well-poised to capture growth opportunities across all asset classes in Q4.”
Gross stage 3 assets as on December 31, 2021 stood at 3.39% with provision cover of 39%, compared to 3.45% with 39% provision cover as of September 30, 2021. Net stage 3 assets closed at 2.09%, against 2.12% as of September 30, 2021.