Sundaram Finance Ltd.’s standalone net profit for the second quarter ended September 30, rose 10% to ₹211 crore from the year-earlier period.
Total revenue increased to ₹1,022 crore from ₹993 crore, while other income contracted to ₹3.35 crore from ₹4.90 crore, the firm said in a regulatory filing.
Gross and net NPAs rose to 3.85% (2.44%) and 2.48% (1.44%) respectively. The gross and net NPAs as of September 30, 2020 were in line with the interim order of the Supreme Court, which had directed that borrowers who had availed moratorium and were not declared as non-performing till August 31, 2020 shall not be declared as NPA till further orders. Had the company classified such borrower accounts as NPAs as on September 30, 2020, the gross and net NPAs would have been at 2.81% and 1.74% respectively. Disbursements were up 14% at ₹3,621 crore. Stage 3 assets stood at 3.45%. Assets under management (AUM) stood at ₹29,811 crore. The company reported a capital adequacy ratio of 23.4%.
Executive vice chairman Harsha Viji said that the second quarter saw improvement on both business growth and collections. However, overall recovery to a new normal would take time, he pointed out.
Customer sentiment had significantly improved, and the second half of the year would likely see broad-based recovery, he added.
“While stress continues in COVID-impacted sub-sectors, we remain focused on supporting our customers in resuming their business activity from the disruptions. Despite supply challenges due to the global chip shortage, demand is improving across asset classes,” said MD Rajiv Lochan.
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