Sundaram Home Finance, a wholly owned subsidiary of non-banking finance company Sundaram Finance Ltd, is planning to raise Rs 2,500 crore to fund its growth plans, the company said on Saturday.
“The funds will be raised this year through a mix of debt instruments and bank funding,” a statement said.
Sundaram Home Finance’s net profit for the fourth quarter ended March 2021 stood at Rs 36.60 crore against a net profit of Rs 82 crore a year ago. However, in the corresponding quarter last year there was a one-time exceptional item of Rs 60 crore on account of write- back of deferred tax liability.
“Hence, the net profit for the two periods are not comparable,” the statement said.
Disbursements for the quarter under review grew to Rs 459.38 crore from Rs 389.60 crore a year ago.
For the year ended March 31, 2021, the net profit was Rs 191 crore against Rs 218 crore for 2019-20. The total disbursements made were Rs 1,254.05 crore against Rs 2,112.09 crore a year ago.
Sundaram Home Finance MD Lakshminarayanan Duraiswamy said, “While it was a gloomy start to 2020-21, marked by a lockdown in the first couple of months, the latter half of the year panned out well and we saw a gradual but certain recovery.”
The real estate sector showed remarkable tenacity in 2020 against all odds, he said.
“Over the five-month period between November 2020 and March 21, we saw demand getting back to pre-Covid levels. The fourth quarter was the silver lining with return of customer confidence,” he said.
“There will be a momentary halt in the upward trend… However, as the recovery of 2020 showed, the market is likely to emerge stronger.”