The Hindu : Business : Sundaram Finance pays 20 p.c. final

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Thursday, May 31, 2007
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Sundaram Finance pays 20 p.c. final

Corporate Reporter

Disbursements up 28 p.c.; operating net profit at Rs. 100.47 crore

CHENNAI: Sundaram Finance Limited (SFL), a strong player in commercial vehicle and car finance segments, has registered a 28 per cent growth in its disbursements at Rs. 4,386 crore in the year ended March 31, 2007 against Rs. 3,422 crore in the previous year. The operating net profit stood at Rs. 100.47 crore against Rs. 170.59 crore in the previous year.

Addressing presspersons here on Wednesday, T. T. Srinivasaraghavan, Managing Director of the company said, the previous year profit included a one-time profit of Rs. 88.13 crore on sale of its stake in Sundaram Asset Management Company to BNP Paribas. If that profit is excluded, the growth in operating net profit will be 22 per cent, Mr. Srinivasaraghavan said. The year under reference has seen a strong growth in the automobile industry with medium and heavy commercial vehicles leading the way.

The company has recommended a final dividend of 20 per cent which, along with the interim dividend of 85 per cent, takes the total to 105 per cent.

Sundaram BNP Paribas Mutual Fund, a group entity, has reported assets under management at Rs. 7,500 crore.

The net profit stood at Rs. 5.74 crore.

Sundaram Home Finance, another entity, has doubled its net profit to Rs. 14.60 crore from Rs. 5.86 crore. The company has recently signed an agreement with UCB, a subsidiary of BNP Paribas, under which UCB will acquire 49.9 per cent in Sundaram Home Finance.

Royal Sundaram, the insurance venture of the group, increased its revenues by 30 per cent to Rs. 601 crore and the profit after tax rose to Rs. 21.19 crore from Rs. 8.63 crore in 2005-06.

Sundaram Direct, the distribution of financial products and services arm, has expanded significantly, opening close to 50 new offices. According to Mr. Srinivasaraghavan, the plan was to open 200 offices across the country over the next 12 months. The expansion is expected to double Sundaram Finance's overall presence in the country to over 450 offices, the MD said.

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