Sundaram Finance clocks net profits at Rs 192 crore in Sept quarter

: Non Banking Finance Company Sundaram

Finance on Friday recorded net profits at Rs 192 crore for the quarter ending September 30, 2020.

The city-based company had recorded net profits at Rs 269 crore during the corresponding quarter previous year.

"The net profit of Q2 of the previous year includes one- time income of Rs 53 crore.

Hence the profit for the current quarter is not comparable with that of the previous year", a company statement said here.

For the half year ending March 31, 2020 the company had clocked net profits at Rs 358 crore, compared to Rs 427 crore registered during the same period last fiscal.

The Net profit of H1 of the previous year includes an one-time income of Rs 53 crore representing profit on sale of equity shares in Sundaram Finance Holdings Ltd.

Hence the profit for the first half of the year is not comparable with the previous year, the release said.

Income from operations for the quarter under review stood at Rs 993 crore as against Rs 994 crore recorded in the corresponding quarter of the previous year.

For the half year ending September 30, 2020, income from operations was Rs 1,941 crore as compared to Rs 1,924 crore recorded in the same period last fiscal.

Disbursements during the quarter ending September 2020 was Rs 3,174 crore against Rs 3,832 crore during the same period last year.

Assets under management stood at Rs 30,572 crore as on September 30, 2020 compared to Rs 30,256 crore clocked in the same period last year.

Commenting on the financial results, company MD T T Srinivasaraghavan said "despite the first two months of the year having been a washout, we managed to reach over 80 per cent of our disbursements in Q2".

"Every succeeding month since May has witnessed an upward trend. On the back of a bountiful monsoon and government's investment in infrastructure, the tractor and construction equipment segments have done particularly well", he said.

On the outlook, he said "while there is a lot of positivity around the festive season, we have to wait and watch if this momentum sustains in the coming months".