Sundaram Finance Holdings Q4 profit at ₹15.16 crore

Sundaram Finance Holdings Ltd (SFHL) has reported a net profit of ₹ 54.43 crore for the year ended March 2018 as compared to ₹ 0.48 crore registered in the previous year ended March 2017.

This is the first year of operations after the de-merger of Sundaram Finance Limited’s (SFL) non-financial services investments into Sundaram Finance Holdings Ltd (SFHL).

Revenue of SFHL for the year went up to ₹ 74.38 crore ( ₹ 4.84 crore).

The board has recommended a dividend of ₹ 1.50 per share on a face value of ₹ 5 per share.

For the quarter ended March 2018, Sundaram Finance Holdings Ltd. registered a net profit of ₹ 15.16 crore as compared to a net loss of ₹ 0.34crore for the quarter ended March 2017. Revenues for quarter under review stood at ₹ 21.97crore (₹ 0.45crore).

``It is to be noted that all figures for the current year/quarter are after giving effect to the Scheme of Arrangement, and, hence, not comparable with those of the earlier periods,’’ the company said in a statement.

SFL had, in February 2017, announced a Composite Scheme of Arrangement under which all the non-financial services investments of SFL together with identified shared services businesses were de-merged into a wholly-owned subsidiary. Consequent to the de-merger, SFHL is now the holding company for all non-financial services investments of the group. Pursuant to the scheme, all shareholders of SFL were allotted one share of SFHL free of cost for every share held in SFL as on the record date. Consequently, the paid-up equity share capital of the company increased from ₹ 20 crore to ₹ 75.55crore.

Over nearly six decades, SFL has invested in various non-financial services businesses, including several investments in automotive and manufacturing businesses, as a co-promoter along with TVS group companies. Significant investments include Sundaram Clayton, Wheels India, IMPAL (all listed) and Brakes India, Turbo Energy (both unlisted).

T.T. Srinivasaraghavan, Director, Sundaram Finance Holdings Ltd., said, “Over the years, our investments in the manufacturing and automotive sectors have not only yielded significant returns, but also demonstrated a strong track record of value creation. While continuing to look for opportunities in these sectors, we hope to explore possibilities in newer segments, including the fintech space, especially those that have an ‘adjacency’ to the businesses that the Sundaram Finance Group is involved in.”

The company was listed on the NSE on March 26, 2018.