SF Holdings Q1 profit surges 80% to ₹5.13 cr.

‘Auto still scarred by downturn’

Sundaram Finance Holdings Ltd. (SF Holdings) reported first quarter net profit grew 80% to ₹5.13 crore while revenue rose 13% to ₹10.50 crore.

SF Holdings primarily operates as a holding company owning a portfolio of businesses engaged in various aspects of automotive manufacturing.

While performance of portfolio companies is improving, they are still below FY20 on account of the downturn in the automotive industry, SF Holdings said.

“We remain optimistic on the recovery and growth of the automotive sector in the medium term and consequently, we expect a recovery in the future results,” director Harsha Viji said in a statement.

T.T. Srinivasaraghavan, chairman, said: “The down-turn has given us an opportunity to further consolidate our long-term holdings in our portfolio. We have bought out foreign partners in Wheels India and Brakes India for ₹450 crore.”

The company increased its stake in Wheels India Ltd from 13.58% to 23.28%, through the acquisition of an additional 9.70% stake from the foreign partner (Titan Europe) for a total consideration of ₹100 crore. The combined holding of the Indian promoters in Wheels India now stands at 57.53%.

During FY22, SF Holdings completed the acquisition of an additional 7.71% stake in Brakes India Pvt. Ltd. for a total consideration of ₹350 crore from the foreign partner ZF International, taking its stake from 6.67% to 14.38%. The Indian promoters now own 100% of the company. This investment was funded through a rights issue, completed on June 11.

The company also consolidated its shareholding in its foundry portfolio by acquiring a 6.84% stake in Flometallic India Pvt. Ltd. Consequently, the stake in Flometallic has increased from 40% to 46.84%.

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