CHENNAI: Sundaram Finance Ltd. (SFL) has reported a net profit of Rs.170.59 crore for the year ended March 31, 2006, as against a net profit of Rs. 75.99 crore in the preceding year. The net profit for 2005-06 includes a one-time income of Rs. 88.13 crore arising out of sale stake to BNP Paribas.

Disbursements for the year under review registered a 20 per cent growth at Rs. 3,422 crore, up from Rs. 2,859 crore in the preceding year.

The capital adequacy was at 13.75 per cent as on March 31, 2006. The board has recommended a dividend of 135 per cent, including a special dividend of 50 per cent, for the year ended March 2006.

T. T. Srinivasaraghavan, Managing Director, said SFL had reported a growth of nine per cent in net profit after excluding the one-time extraordinary income from the sake sale to BNP Paribas. This was reflective of the conditions obtaining in the marketplace, he added. In this context, he pointed to decline in growth rates in both the passenger car and commercial vehicle segments last year. Nevertheless, he said he was "cautiously optimistic of SFL registering another year of good performance this year''.

He based his optimism on two factors — expansion into newer areas like Orissa and the unique `go-to-market' (without recourse to an intermediary) strategy of the company.

"The quality of SFL's book is the best in the business,'' he said, and pointed to the low retail net NPA (non-performing assets) of 0.36 per cent. The company's net worth stood at Rs. 811 crore (Rs. 683 crore) and gross receivables at Rs. 4,971 crore (Rs. 4,460 crore). Mr. Srinivasaraghavan said the South contributed 60 per cent of the company's business. Out of the total 167 branches, around 40 per cent were located outside the Southern States, he added.

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