Sundaram Finance Q2 standalone net skids 7% to ₹340 cr.

Sundaram Finance Ltd. reports 7% profit contraction in Q2, with increased revenue and positive outlook for economic recovery.

Sundaram Finance Ltd. standalone net profit for the September quarter contracted 7% over the year earlier period to ₹340 crore.

Total revenue from operations increased from ₹1,375 crore to ₹1,601 crore, the leading NBFC said in a statement.

Disbursements in the first half recorded 3% growth to ₹13,768 crore, while Assets under management grew by 20% to ₹48,058 crore. Net interest income rose 19.4% to ₹1,304 crore. Dividend income was lower at ₹43 crore against ₹181 crore.

The gross and net non-performing assets declined to 2.39% and 1.55% respectively from 2.89% and 2.06% respectively.

Return on assets closed at 2.50% against 2.95% and capital adequacy stood at 20% (19.9%).

“Economic activity in Q2 was well below expectations with the monsoons disrupting consumption and government spending being slower post the general elections,” said MD Rajiv Lochan.

“Looking ahead, we remain cautiously optimistic of a recovery in economic activity in H2 as domestic consumption and private sector capital expenditure resume and the central government’s infrastructure spend and policy agenda gather pace,” Mr. Lochan said.