Non-banking financial company Sundaram Finance Ltd. on Monday reported a 16.5% dip in standalone net profit for the third quarter ended December to ₹202 crore.
Total revenue from operations slid 8% to ₹958 crore. The company declared an interim dividend of ₹10 per share, it said in a statement.
“Overall economic activity improved in Q3 FY22 and demand remained robust across segments,” said Harsha Viji, executive vice chairman.
However, supply-side issues, including the global semiconductor chip shortage, caused a decline in industry volumes across multiple asset classes. Medium and heavy commercial vehicles witnessed robust growth albeit on a smaller base.
“We anticipate broad-based recovery across all segments in Q4,” he said.
Managing Director Rajiv Lochan said the firm expected the current quarter to see recovery to normalcy which will enable pick-up in activity and credit off take. “The company is well-poised to capture growth opportunities across all asset classes in Q4,” he said.
Disbursements for April-December 2021 recorded 13% growth to ₹9,524 crore. Assets under management stood at ₹29,796 crore.
Gross stage-3 assets stood at 3.39% with provision cover of 39% and net stage 3 assets were 2.09%.
Capital adequacy ratio stood at 23.6% as of December compared with 19.8% a year earlier.