Sundaram Finance, a leading non-banking finance company, has reported 35 per cent growth in net profit to ₹138 crore for the quarter ended December 31, 2016, from ₹102 crore in the year-ago period.
The profit growth was aided by higher other income and lower finance costs amid marginal rise in income.
Its gross profit (before other income, finance costs and exceptional items) rose to ₹455 crore (₹449 crore in the year-ago quarter) on the back of weak topline growth.
Income of the company rose marginally to ₹598 crore (₹591 crore).
Other income was higher at ₹34 crore, while finance costs were lower at ₹288 crore (₹324 crore in Q3 FY16). The December quarter saw a drop in lending to the commercial vehicles (CV) sector, which was impacted by a cash crunch following demonetisation. The CV segment accounts for a significant portion of Sundaram Finance’s disbursements.
Nine-month performanceFor the nine-month period ended December 31, the company’s net profit stood at ₹356 crore as against ₹355 crore in the year-ago period.
“Profit for the nine-month period is not comparable as the previous year had a one-time profit of ₹40.65 crore on account of sale of equity shares in BNP Paribas Sundaram Global Securities’ operations,” according to the company.
Gross profit (before other income, finance costs and exceptional items) was ₹1,328 crore (₹1,304 crore during the nine-month period of FY16). Income from operations was higher at ₹1,748 crore (₹1,730 crore).