Advertisement

Business

Updated on: Tuesday, November 09, 2021, 05:07 PM IST

Sundaram Finance expects second half of year to see broad-based recovery

Sundaram Finance Holdings' stake in Mind will now increase from 40.6 per cent to 48.9 per cent. |

Sundaram Finance Holdings' stake in Mind will now increase from 40.6 per cent to 48.9 per cent. |

Advertisement

Sundaram Finance estimates the second half of the year to likely witness a broad-based recovery with customer sentiment improving 'significantly', according to its Executive Vice Chairman Harsha Viji.

The city-headquartered company reported a 12.2 per cent rise in the standalone profit after tax for the half ending September 30, 2021 at Rs 402 crore as against Rs 358 crore recorded in the same period of last year.

The profit after tax for the quarter ending September 30, 2021 was at Rs 211 crore, a 10 per cent increase registered in same period of last fiscal.

Disbursements during the six-month period ending September 30, 2021 on a standalone basis witnessed a 38.4 per cent rise to Rs 5,681 crore as compared to Rs 4,103 crore registered in the corresponding period of previous year.

For the quarter under review disbursements grew by 14 per cent to Rs 3,621 crore as against Rs 3,174 crore registered in the same period last year.

''Every month the second quarter has seen improvement on both business growth and collections. The vicious second wave (of Covid-19) appears behind us. That said, overall recovery to a new normal will take time,'' Viji said.

''Customer sentiment has significantly improved, and the second half of the year will likely see broad-based recovery,'' he said.

The company said the assets under management (AUM) stood at Rs 29,811 crore as on September 30, 2021 as against Rs 29,823 crore as on June 30, 2021.

Sundaram Finance Ltd, Managing Director, Rajiv Lochan said, ''we have made good progress on both growth and asset quality in the second quarter. While stress continues in COVID-impacted sub-sectors, we remain focused on supporting our customers...'' ''Despite supply challenges due to the global chip shortage, demand is improving across asset classes,'' he said.

Royal Sundaram General Insurance, the company's joint venture with Belgium-based Ageas delivered Gross Written Premium of Rs 1,420 crore in the half year period ending September 30, 2021 a 13 per cent rise from Rs 1,257 crore registered in same period of last year.

The profit for the six-month period ending September 30, 2021 stood at Rs 152 crore as against Rs 241 crore registered during corresponding period of last fiscal.

The profit was impacted by an elevated level of COVID-19 second wave claims in the health book during the first six month period ending September 30, 2021 and lower motor claims due to more extensive lock down nationwide.

The disbursements of Sundaram Home Finance were up by 136 per cent to Rs 891 crore during the six-month period ending September 30, 2021 while the profit for the half year period ending September 30, 2021 was at Rs 80 crore as against Rs 99 crore during corresponding period of last year, the statement added.

(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Tuesday, November 09, 2021, 04:47 PM IST
Advertisement