Sundaram Finance Ltd (SFL)’s standalone net profit for the second quarter ended September rose 44% to ₹304 crore from the year-ago period.
Total revenue from operations grew by nearly 3% to ₹1,048.31 crore crore, while disbursements grew 42% to ₹5,139 crore, the company said in a statement.
“Economic activity remained strong through Q2. We delivered strong growth while continuing the momentum from Q1 to acquire and grow our market share across most asset classes,” said Harsh Viji, Executive Vice President.
“Our asset quality continued to improve and remain best-in-class, while improving profitability and creating enough ammunition to continue down our growth path,” he added.
For the six-month period, assets under management rose 7.3% to ₹31,980 crore. The total restructured assets under the enabling COVID relief measures by RBI stood at ₹927 crore, which was around 2.9% of the outstanding loans.
Gross Stage 3 assets were 2.54% with a provision cover of 47% as against 3.45% with a provision cover of 39%. Net Phase 3 declined from 2.12% to 1.37%. The capital adequacy ratio stood at 24.3%.
“The external environment is likely to see some moderation in the second half as RBI’s pandemic housing gains traction and global geopolitical and monetary policy changes continue,” said Rajeev Lochan, MD.