Sundaram Finance Holdings Ltd reported a 72 per cent increase in its consolidated net profit at ₹33.25 crore for the quarter ended September 30, 2022, compared with ₹19.29 crore in the year-ago quarter.
SF Holdings is a holding company owning a portfolio of automotive businesses including foundries, wheels, brakes, turbochargers, axles and distribution of spare parts.
Its standalone net profit stood doubled to ₹22.23 crore (₹11.09 crore).
Driven by a strong recovery in the automobile sector, the dividend received from portfolio companies was at ₹67.98 crore for the half year ended September 30, 2022, already exceeding the full year’s dividend received for FY22 (₹40.90 crore), according to a statement.
However, there are mixed signals on whether the momentum in the automotive sector would continue into the second half of the financial year, it said.
During Q2, the company’s shareholding in Brakes India Pvt Ltd increased to 23.57 per cent pursuant to the scheme of amalgamation for the merger of Flometallic India P Ltd with Brakes India which was approved by NCLT, and thereby it has become our associate company.
SF Holdings purchased shares of India Motor Parts & Accessories Ltd from the open market and increased its shareholding to 20% and thereby it has also become our associate company. “We continue to consolidate our shareholding in core portfolio companies which primarily cater to the automotive business,” said Harsha Viji, Chairman, Sundaram Finance Holdings Ltd.