Date:01/06/2004 URL: http://www.thehindubusinessline.com/2004/06/01/stories/2004060101350800.htm

Back Sundaram Finance PAT up at Rs 56 cr

Our Bureau

Chennai , May 31

SUNDARAM Finance has announced a profit after tax of Rs 55.62 crore for 2003-04, higher by 22 per cent in relation to the previous year's profit of Rs 45.66 crore.

The company's board had earlier recommended a dividend of 70 per cent on its equity shares that each have a face value of Rs 10.

The income from operations fell by 4.65 per cent to Rs 348.26 crore (Rs 365.19 crore). Simultaneously, interest expense dropped by 17.29 per cent to Rs 157.41 crore (Rs 190.33 crore). The average cost of funds fell by 200 basis points to 6.5 per cent.

At a press conference, Sundaram Finance's Managing Director, Mr T.T. Srinivasaraghavan, said the interest spread had come down. He said the company did not intend to convert itself into a bank, but added they were not close-minded about the possibility.

The net NPA was 0.83 per cent (1.45 per cent). Disbursements grew by 37 per cent in 2003-04 to reach Rs 2,104 crore (Rs 1,532 crore).

Mr Srinivasaraghavan said 95 per cent of the disbursements were directed to financing vehicles, of which commercial vehicle financing absorbed 63 per cent.

He said that one of the key developments during the year was that the company's subsidiaries had become profitable.

Sundaram Home Finance, Sundaram Asset Management and Royal Sundaram (a general insurance company) registered profits.

For the quarter of 2003-04, the company registered a profit after tax of Rs 14.05 crore (Rs 12.10 crore) on operating income of Rs 88.99 crore (Rs 108.08 crore).