Chennai: Sundaram Finance will be focussing on its core markets and segments, while simultaneously exploring opportunities in newer geographies, said chairman of the firm, S Viji.
He was addressing the shareholders at the 66th AGM of the company, and said the company’s disbursements growth of 9.3 per cent to Rs 17,170 crore in 2018-19 was mainly due to focus on the rapidly growing construction equipment and intermediate and light commercial vehicle segments and the deepening of its presence in new geographies and market segments.
Sundaram Finance’s sustained focus on maintaining superior asset quality ensured that its portfolio continued to be best in class, said a statement from the firm.
“The Gross and Net NPAs as at 31 March, stood at 1.33 per cent and 0.83 per cent, a testimony to the prudent credit underwriting policies of the company,” said the chairman.
On the outlook, he told the shareholders that the uncertainties surrounding market liquidity, interest rates, global oil prices and the imminent introduction of the BS VI emission norms rendered forecasts difficult.
“The Government’s continuing thrust on infrastructure should hopefully provide some impetus to the construction equipment and related segments. As always, much will depend on the progress of the southwest monsoon, given its impact on the overall prosperity and well-being of rural India, which in turn will influence consumption spending,” said Viji.
On growth opportunities, TT Srinivasaraghavan, MD, Sundaram Finance, said, “In this business, it is very easy and sometimes tempting to grow at a rapid pace. Over the years, Sundaram Finance has grown on the basis of prudence. Our growth this year will be cautious, without comprising quality. In recent years, we have ventured into new states and geographies and are now deepening our presence in some of them and expanding in a few others.”