Chennai: Sundaram Finance Holdings Ltd has registered internet revenue at Rs 5.13 crore for the quarter ending June 30, 2021 up by 80 per cent, the corporate mentioned on Thursday.
The town-based firm had registered internet revenue at Rs 2.85 crore throughout corresponding quarter earlier 12 months.
Income through the quarter beneath overview grew to Rs 10.50 crore from Rs 9.30 crore registered within the corresponding quarter earlier 12 months, an organization assertion mentioned right here.
Sundaram Finance Holdings primarily operates as a holding firm, proudly owning a portfolio of companies engaged in automotive manufacturing together with brakes, turbo chargers, ferrous castings, axles, wheels, gasoline injection.
The corporate’s vital investments embrace Sundaram-Clayton, WheelsIndia, IMPAL and Brakes India, Turbo Power.
Based on the assertion, whereas efficiency of portfolio corporations is enhancing, they’re nonetheless under their ends in FY19-20 because of the downturn within the automotive trade pushed by cyclical components in addition to the impression of the COVID-19 pandemic.
“We stay optimistic on the restoration and progress of the automotive sector within the medium time period and consequently we count on a restoration sooner or later outcomes of the corporate”, Sundaram Finance Holdings Ltd Director, Harsha Viji mentioned.
Based on firm chairman T T Srinivasaraghavan, the down-turn was a possibility to additional consolidate the long-term holdings within the portfolio.
“We’ve got purchased out international companions in Wheels India and Brakes India with an funding of Rs 450 crore”, he mentioned.
The corporate elevated its stake in Wheels India Ltd, a metal wheel producer for automobiles and business autos, from 13.58 per cent to 23.28 per cent by an acquisition of an extra 9.70 per cent from its international partnerTitanEurope for Rs 100 crore.
The mixed holding of Indian promoters in Wheels India stands at 57.53 per cent.
In the course of the first quarter of present monetary 12 months, Sundaram Finance Holdings accomplished the acquisition of an extra 7.71 per cent stake in Brakes India Pvt Ltd for a consideration of Rs 350 crore from the international accomplice ZF Worldwide, taking its stake from 6.67 per cent to 14.38 per cent, making the Indian promoters maintain 100 per cent stake.
The funding was funded by a rights concern which was accomplished on June 11, 2021, it mentioned.
SF Holdings additionally consolidated its shareholding in its foundry portfolio by buying 6.84 per cent stake in Flometallic India Pvt Ltd and consequently its stakeincreased to 46.84 per cent from 40 per cent.
Flometallic India operates ferrous steel foundries in Gujarat and primarily provides automotive elements for home and abroad markets.
SF Holdings mentioned, in October 2020, it made an funding of Rs 23.71 crore into the carbon fibre enterprise of Italy-based Thoughts S.r.l for a stake of 40.6 per cent.
“The carbon fibre market, although nascent in India now, has strong potential to develop in the long run and the know-how and experience from Thoughts S.r.L will assist place SF Holdings effectively available in the market”, firm director Srivats Ram mentioned.
“In the long run, the carbon fibre operations may get partially shifted to India, which is predicted to lower manpower value and broaden margins”, he mentioned.
