New Delhi: Chennai-based NBFC firm Sundaram Finance has registered 12% rise in net profit at Rs154 crore in the third quarter ended December 2017. The company’s net profit in the same period of the previous fiscal stood at Rs138 crore.
Total revenues also grew to Rs710.28 crore in the third quarter of 2017-18 against Rs623.65 crore in the same period of 2016-17, the company said in a regulatory filing.
Provision and write-offs for the period rose to Rs14 crore from Rs12 crore a year earlier while contingent provision against standard assets increased to Rs2.8 crore from Rs1.99 crore.
“The asset quality continued to reflect company’s continuing emphasis on credit underwriting with gross and net non-performing assets standing at 1.74% and 0.81% respectively as on 31 December, 2017, as compared to 2.16% and 1.02% as on 31 December, 2016," it said.
Sundaram Finance also announced that the National Company Law Tribunal (NCTL) has approved the composite scheme of arrangement and amalgamation between the company and its four subsidiaries.
The four subsidiaries are Sundaram Insurance Broking, Infreight Logistics Solutions, Sundaram BPO India and Sundaram Finance Holdings.
It said the scheme shall be effective from appointed date of 1 April 2016 and shall be operative from 18 January 2018. The disbursements rose by 46% to Rs4,810 crore in October-December period of 2017-18 from Rs3,284 crore in the year ago period.
“We witnessed a robust growth in disbursements in third quarter, driven by a strong surge in sales of medium and heavy commercial vehicles," said T.T. Srinivasaraghavan, MD, Sundaram Finance Ltd.
The company is engaged into financing for commercial vehicles, passenger cars and construction equipments as well as specially designed working capital products, such as fuel finance and tyre finance.
Sundaram Finance is also into home loans, mutual funds, non-life insurance, IT and BPO among others. Shares of the company closed 0.50% up at Rs1,875.10 a piece on BSE on Tuesday.