In the first year of operations after the demerger of Sundaram Finance Ltd.’s (SFL) non-financial services investments into Sundaram Finance Holdings Ltd. (SFHL), the latter has reported a net profit of Rs. 54.43 crores for the year ended March 31, 2018, as compared to Rs. 0.48 crores registered in the previous year ended March 31, 2017.
Revenues for the year ended March 31, 2018, went up to Rs. 74.38 crores as compared to Rs. 4.84 crores registered in the previous year ended March 31, 2017.
For the quarter ended March 31, 2018, Sundaram Finance Holdings registered a net profit of Rs. 15.16 crores as compared to a net loss of Rs. 0.34 crores for the quarter ended March 31, 2017. Revenues for the quarter ended March 31, 2018, stood at Rs. 21.97 crores as compared to Rs. 0.45 crores for the quarter ended March 31, 2017.
It is to be noted that all figures for the current year/quarter are after giving effect to the Scheme of Arrangement and hence not comparable with those of the earlier periods.
SFL had in February 2017 announced a Composite Scheme of Arrangement under which all its non-financial services investments, together with identified shared services businesses, were demerged into a wholly-owned subsidiary. Consequent to the demerger, SFHL is now the holding company for all non-financial services investments of the group.
Over nearly six decades, SFL has invested in various non-financial services businesses, including several investments in automotive and manufacturing businesses as a co-promoter along with TVS Group companies. Significant investments include Sundaram Clayton, Wheels India and IMPAL (all listed) and Brakes India and Turbo Energy (both unlisted).