Sundaram Home Finance’s net profit for the fourth quarter of FY21 was down 55 per cent to ₹36.6 crore. The company reported a net profit of ₹82 crore in the same period last year.
However, the company, a wholly owned subsidiary of Sundaram Finance, said that the results of the two periods are not comparable as net profit in the year-ago quarter had an exceptional item of ₹60 crore on account of write back of deferred tax liability.
The company said that on a comparable basis, profit from continuing operations for Q4FY21 went up 68 per cent to ₹36.60 crore (₹21.68 crore), excluding the one-time exceptional item of ₹60 crore during Q4FY20.
Disbursements during the fourth quarter went up 18 per cent to ₹459.38 crore (₹389.60 crore) while deposits saw a net addition of ₹204 crore to ₹1,810 crore as on March 31.
“The real estate sector showed remarkable tenacity in 2020 against unprecedented odds. Over the five-month period between Nov’20 and March’21, we saw demand getting back to pre-Covid levels and a nice momentum was starting to build,” Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance, was quoted in a press release.
In FY21, the company registered a net profit of ₹191 crore compared to ₹218 crore in FY20.
The company also said that it is looking to raise ₹2, 500 crore this year through a mix of debt instruments and bank funding to augment its growth plans.