Sundaram Finance Q4 net Rs 675 cr; to raise Rs 11,000 cr through various options to fund business growth

Chennai: Non-banking finance company Sundaram Finance Ltd has recorded net profit for the quarter ending 31 March, 2019 at Rs 675 crore. The city-based firm had registered net profit at Rs 138 crore a year ago. For the January-March 2019 period, revenue from operations increased to Rs 881 crore from Rs 788 crore. For the year ending 31 March, 2019, net profit surged to Rs 1,126 crore from Rs 563 crore registered last fiscal. [caption id=“attachment_6013191” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The net profit clocked in FY 2018-19 includes an “exceptional income” of Rs 522 crore, on account of sales of shares in Royal Sundaram in fourth quarter. Revenue from operations for the year ending 31 March, 2019 rose to Rs 3,398 crore from Rs 2,806 crore. Commenting on the financial performance, company Managing Director T T Srinivasaraghavan said the crisis in the non-banking finance space dominated the space in 2018-19. “While medium and heavy commercial vehicle segments saw runaway growth in the first half (2018-19), it is just dropped in second half (2018-19),” he told reporters. On the asset quality, he said, despite being “turbulent time”, asset quality has held well and overall recovery as well as NPA (non-performing assets) were “very robust.” The company had raised Rs 10,200 crore as term funds in 2018-19 from banks, mutual funds, insurance companies and others in form of non-convertible debentures. In 2019-20, he said, the company expects to raise Rs 11,000 crore through various fund options including securitisation to fund business growth. “We are confident of raising these funds. We are looking at prudent growth. We are concentrating on asset quality and profitability,” he said. On the outlook for 2019-20, he said with the new government in place at the Centre, it is reasonably expected that the thrust on infrastructure would continue. “However, uncertainities surrounding market liquidity, interest rates, imminent introduction of BS-VI emission norms and global oil prices, render forecasts difficult,” he said.