Sundaram Finance Holdings Q3 consolidated net rises 22%

Sundaram Finance Holdings (SF Holdings) has reported a consolidated net profit of Rs 33.63 crore for the quarter ended December 31, 2021, an increase of 22% over Rs 27.65 crore in the corresponding period of the previous year.

SF Holdings primarily operates as a holding company owning a portfolio of automotive businesses, including foundries, wheels, brakes, turbo chargers, axles and distribution of spare parts. As a result, dividend from portfolio companies forms a substantial part of financial results. Dividend received from portfolio companies was at Rs 29.38 crore for the period ended December 31, 2021, against the total dividend of Rs 14.13 crore received during 2020-21.

During the quarter, SF Holdings sold a 1.50% stake held in Sundaram Clayton for a total gain of Rs 124.66 crore, bringing its stake down to 9.74%. Using the proceeds of the divestment, the board of SF Holdings has declared a special dividend of 20%.

SF Holdings made further investments in its composites business during the quarter. It made a follow-on investment of euro 2 million in Mind S.r.l., Italy, which focuses on carbon fibre components for the automotive industry. Prior to this, over the previous 18 months, SF Holdings invested euro 2.60 million in Mind S.r.l. The company now has a 48.86% stake in the Italian firm.

It has also promoted a greenfield operation to manufacture carbon fibre components in Tamil Nadu at an initial investment of Rs 19.50 crore in Sundaram Composite Structures.

from Banking & Finance – The Financial Express https://ift.tt/cyInd72