Sundaram Home Finance, the home finance subsidiary of Sundaram Finance Ltd., has registered a net profit of Rs. 218 crores (including a onetime exceptional item of Rs. 60 crores on account of write back of deferred tax liability) for the year ended 31st March 2020. The company had registered net profit of Rs. 145 crores for the previous year ended 31st March 2019. Hence, the net profit for the two years is not comparable on a like to like basis.
The company registered disbursements of Rs. 2,113 crores for the year ended 31st March 2020. For the previous year ended 31st March 2019, the company had registered disbursements of Rs. 2,449 crores.
Q4 net profit at Rs. 82 crores
Sundaram Home Finance registered a net profit of Rs. 82 crores for the fourth quarter ended 31st March 2020. The company had registered a net profit of Rs. 26 crores for the corresponding quarter of the previous year. As a result of the one-time exceptional item mentioned above, the net profit for the two quarters is not comparable on a like to like basis.
Deposit base grows over 35% in FY20
The company’s deposits registered a growth over 35% in 2019-20 and stood at Rs. 1,605 crores as on 31st March 2020, with a net accretion of over Rs. 430 crores.
On the outlook, Lakshminarayanan Duraiswamy, MD, Sundaram Home Finance, said: “The outlook is one of cautious optimism. Housing market remains under penetrated in India. With funding support from the Government, the market will continue to grow in the longer term. However, in the next couple of quarters, we believe that the market will remain muted. We expect tier 2 and 3 towns to recover faster than the urban areas.”
Sundaram Home Finance is a leading player in the housing finance sector in India. The company has 115 branches across the country.