Sundaram Finance Holdings Ltd, has registered net profit at Rs 5.13 crore for the quarter ending June 30, 2021 up by 80 per cent, the company said on Thursday.

The city-based company had registered net profit at Rs 2.85 crore duringcorresponding quarter previous year.

Revenue during the quarter under review grew to Rs 10.50 crore from Rs 9.30 crore registered in the corresponding quarter previous year, a company statement said here.

Sundaram Finance Holdings primarily operates as a holding company,owning a portfolio of businesses engaged in automotive manufacturing includingbrakes, turbo chargers, ferrous castings, axles, wheels, fuel injection.

The company's significant investments include Sundaram-Clayton, WheelsIndia, IMPAL and Brakes India, Turbo Energy.

The performance of the companies was below the results as compared toFY2019-20 due to the downturn in the automotive industry and also due to theimpact of the COVID- 19 outbreak.

"We remain optimistic on the recovery and growth of the automotive sectorin the medium term and consequently we expect a recovery in the future results ofthe company", Sundaram Finance Holdings Ltd Director, Harsha Viji said.

According to company chairman T T Srinivasaraghavan, the down-turn wasan opportunity to further consolidate the long-term holdings in the portfolio.

"We have brought out foreign partners in Wheels India and Brakes India withan investment of Rs 450 crore", he said.

The company increased its stake in Wheels India Ltd, a steel wheel manufacturer for cars and commercial vehicles, from 13.58 per cent to 23.28 per centthrough an acquisition of an additional 9.70 per cent from its foreign partner TitanEurope for Rs 100 crore.

The combined holding of Indian promoters in Wheels Indiastands at 57.53 per cent.

During the first quarter of current financial year, Sundaram Finance Holdings completed the acquisition of an additional 7.71 per cent stake in Brakes India Pvt Ltd for a consideration of Rs 350 crore from the foreign partner ZF International, taking its stake from 6.67 per cent to 14.38 per cent, making the Indian promoters hold 100 per cent stake.

The investment was funded through a rights issue which was completed on June 11, 2021, it said.

SF Holdings also consolidated its shareholding in its foundry portfolio by acquiring 6.84 per cent stake in Flometallic India Pvt Ltd and consequently its stake increased to 46.84 per cent from 40 per cent.

Flometallic India operates ferrous metal foundries in Gujarat and primarily supplies automotive components for domestic and overseas markets.

SF Holdings on the occasion announced its entry into the carbon fibre market by investing Rs 23.71 crore into the carbon fibre business of Italy-based Mind S.r.l for a stake of 40.6 per cent.

"The carbon fibre market, though nascent in India now, has solid potential to grow in the long term and the technology and expertise from Mind S.r.L will help position SF Holdings well in the market", company director Srivats Ram said.

"In the long term, the carbon fibre operations could get partially shifted to India, which is expected to decrease manpower cost and expand margins", he said.