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Sundaram Finance Q3 Net rises 12% at Rs 154 cr

Sundaram Finance Q3 Net rises 12% at Rs 154 cr

New Delhi, Jan 30 (PTI) Chennai-based NBFC firm Sundaram Finance has registered 12 per cent rise in net profit at Rs 154 crore in the third quarter ended December 2017.

The companys net profit in the same period of the previous fiscal stood at Rs 138 crore.

Total revenues also grew to Rs 710.28 crore in the third quarter of 2017-18 against Rs 623.65 crore in the same period of 2016-17, the company said in a regulatory filing.

Provision and write-offs for the period rose to Rs 14 crore from Rs 12 crore a year earlier while contingent provision against standard assets increased to Rs 2.8 crore from 1.99 crore.

"The asset quality continued to reflect companys continuing emphasis on credit underwriting with gross and net non-performing assets standing at 1.74 per cent and 0.81 per cent respectively as on December 31, 2017, as compared to 2.16 per cent and 1.02 per cent as on December 31, 2016," it said.

Sundaram Finance also announced that the National Company Law Tribunal has approved the composite scheme of arrangement and amalgamation between the company and its four subsidiaries.

The four subsidiaries are Sundaram Insurance Broking, Infreight Logistics Solutions, Sundaram BPO India and Sundaram Finance Holdings.

It said the scheme shall be effective from appointed date of April 1, 2016 and shall be operative from January 18, 2018.

The disbursements rose by 46 per cent to Rs 4,810 crore in October-December period of 2017-18 from Rs 3,284 crore in the year ago period.

"We witnessed a robust growth in disbursements in third quarter, driven by a strong surge in sales of medium and heavy commercial vehicles," said T T Srinivasaraghavan, MD, Sundaram Finance Ltd.

The company is engaged into financing for commercial vehicles, passenger cars and construction equipments as well as specially designed working capital products, such as fuel finance and tyre finance.

Sundaram Finance is also into home loans, mutual funds, non-life insurance, IT and BPO among others.

Shares of the company closed 0.50 per cent up at Rs 1,875.10 a piece on BSE today. PTI KPM ADI MR