Sundaram Home Finance registers Q4 net profit of Rs 36.60 cr

Sundaram Home Finance, the wholly-owned subsidiary of Sundaram Finance Ltd., has registered a net profit of Rs 36.60 cr for the Q4 ended 31 March 2021. The company had registered a net profit of Rs 82 cr for the corresponding period in the previous year.

The net profit for the quarter ended 31 March 2020 included a onetime exceptional item of Rs 60 cr on account of write back of deferred tax liability. Hence the Net Profit for the two periods is not comparable.

Disbursements for Q4 ended 31 March 2021 went up 18 pc to Rs 459.38 cr as against Rs 389.60 cr registered in the fourth quarter ended 31 March 2020.

The company registered a net profit of Rs 191 cr for the year ended 31 March 2021 as compared to Rs 218 cr in the same period the previous year.

Profit from continuing operations for the year ended 31 March 2021 went up 21 pc to Rs 191 cr as compared to Rs 158 cr (excluding the onetime exceptional item of Rs 60 cr) for the year ended 31 March 2020.

The company registered disbursements of Rs 1254.05 cr for the full year ended 31 March 2021 as against Rs 2112.09 cr in the year ended 31 March 2020.

The deposit base went up to Rs 1810 cr as on 31 March 2021, a net accretion of Rs 204 cr.

Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance said, “While it was a gloomy start to FY21, marked by lockdown in the first couple of months, the latter half of the year panned out well and we saw a gradual but certain recovery. 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. The fourth quarter was the silver lining in the last financial year with the return of customer confidence.” 

To fund its growth plans, the company is looking to raise Rs 2500 cr this year through a mix of debt instruments and bank funding.

On the outlook for the year, Lakshminarayanan said, “This financial year (FY22) was supposed to be the year of recovery. April started out well in terms of disbursements, but currently there is a great deal of uncertainty on the extent and intensity of the COVID second wave. There will be a momentary halt in the upward trend as we are likely to witness truncated housing sales and scrapped/delayed property development projects. However, as the recovery of 2020 showed, the market is likely to emerge stronger.”