Sundaram Finance: 1Q profits dip by 15% - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Sundaram Finance: 1Q profits dip by 15%

Aug 1, 2001

Sundaram Finance (SFL) has posted a 15% fall in earnings for the June quarter. The company's topline too grew by a marginal 5%.

(Rs m)1QFY011QFY02Change
Income from operations 1,119 1,170 4.6%
Other Income 11 18 66.2%
Financial expenses 790 836 5.9%
Operating Profit (EBDIT) 329 334 1.5%
Operating Profit Margin (%)29.4%28.6% 
Operating expenses 124 138 11.3%
Profit before Tax216215-0.8%
Provision & write off3935-11.0%
Tax 70 88 26.8%
Profit after Tax/(Loss) 107 91 -15.0%
Net profit margin (%)9.6%7.8% 
No. of Shares (eoy) (m) 24.0 24.0  
Diluted Earnings per share 17.9 15.2  
P/E (at current price)  5  

SFL's operating margins declined by 90 basis points and other expenses increased by 11%. This contributed to lower profits in the June quarter.

During the quarter, provision figure was lower by 11%. In FY01, SFL has already reduced the ratio of gross non-performing assets to advances to 6.2% (from 7% in FY00). The net NPA ratio at 4% is also one of the lowest in the finance sector. The ratio was just 1% for the retail business.

At the current market price of Rs 73, SFL is trading at a P/E of 5x and Price/Book value ratio of just 0.3x. The company has maintained its dividend ratio to 60% in the past three years. Assuming the company maintains the dividend ratio in the current year too, the dividend yield works out to 8%.

Equitymaster requests your view! Post a comment on "Sundaram Finance: 1Q profits dip by 15%". Click here!


More Views on News

Indian Railway Finance Corporation IPO: Should You Apply? (IPO)

Jan 18, 2021

Monopolistic railway financer with impeccable asset quality.

CAMS IPO: Should You Apply? (IPO)

Sep 18, 2020

Does the company having 70% market share of the mutual fund registrar business have sound prospects?

SUNDARAM FINANCE Announces Quarterly Results (3QFY19); Net Profit Up 1.8% (Quarterly Result Update)

Feb 15, 2019 | Updated on Feb 15, 2019

For the quarter ended December 2018, SUNDARAM FINANCE has posted a net profit of Rs 2 bn (up 1.8% YoY). Sales on the other hand came in at Rs 9 bn (up 26.2% YoY). Read on for a complete analysis of SUNDARAM FINANCE's quarterly results.

More Views on News

Most Popular

Time to Book Profits in Pharma Stocks (Fast Profits Daily)

Jan 15, 2021

In this video, I'll show you why it might be the right time to take money of the table in pharma stocks.

Smallcap Stocks: Your Best Bet for 2021 and Beyond (Profit Hunter)

Jan 15, 2021

The pandemic failed to thwart Richa's investing success formula for 2020.

Buzzing Sectors Before Budget 2021 (Fast Profits Daily)

Jan 12, 2021

The budget is just a few weeks away. Which stocks can you expect to move? Find out in this video.

Here's Why Smallcaps Could Be Your Best Investment in 2021 (Profit Hunter)

Jan 12, 2021

Select smallcaps hold a great potential to become the multibaggers of tomorrow. Here's how you could get in early into these stocks.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jan 25, 2021 (Close)


  • Track your investment in SUNDARAM FINANCE with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks