Thrust on infra spending & favourable monsoon could revive sentiments: Sundaram Finance

Sundaram Finance Ltd on Saturday said with an overall outlook for the economy not promising due to the COVID-19 enforced lock-down, a major thrust on infrastructure spending and favourable monsoon could revive sentiments in later part of the year, a top official said. The city-based non-banking finance company has declared its financial results for the financial year ending March 31, 2020.

Net profits for the year ending March 31, 2020 stood at Rs 723.95 crore as against Rs 1,126 crore registered same period of last year. For the fourth quarter ending March 31, 2020 net profits was at Rs 130.89 crore as compared to Rs 675 crore registered same quarter of previous year.

"However the net profit for previous financial year includes an exceptional one time income of Rs 522 crore on account of sale of shares in Royal Sundaram and hence the profit numbers are not comparable..," the company said in a statement. On the outlook, company Managing Director, T T Srinivasa Raghavan said, "We live in a time of great uncertainty and the overall outlook for the economy is not promising." "The first half of the year is likely to be muted, but a major thrust on infrastructure spending and a favourable monsoon could revive sentiments in later part of the year", he said.

Revenue from operations for the full year ending March 31, 2020 grew to Rs 3,842 crore from Rs 3,321 crore recorded in corresponding period of last year. For the January-March 2020 quarter revenue stood at Rs 942 crore as against Rs 884 crore registered same period last fiscal.

Meanwhile, the company said Rajiv C Lochan would be appointed as director-strategy on the Board of the company with effect from June 3. Prior taking up the new responsibility, Lochan was been on the board as an 'independent director' for the last few years.

The board which met here on Friday has recommended a final dividend of Rs three per share, the release said.PTI VIJ ROH ROH.

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