Sundaram Finance, Auto News, ET Auto


Chennai: Non-bank finance company Sundaram Finance would deploy all available measures to support loyal customers, drive collections and collection efforts to maintain asset quality levels in addition to cautiously seeking growth opportunities in the aftermath of the pandemic of Covid-19, a senior official said on Monday. .

Sundaram Finance President S Viji said the focus will continue to be balancing growth, quality and profitability (GQP), a proven trinity that has served the company well.

“The key priorities will be to support loyal customers in the aftermath of the Covid-19 crisis by deploying all the measures made available by the regulator and the government, to lead the recovery and recovery efforts to maintain the quality levels of traditional assets and preserve capital, ”he said. addressing shareholders at the 68th AGM.

“… cautiously pursue the growth opportunities that emerge as economic activity picks up after the second wave of the pandemic through the well-understood and diversified asset class base that Sundaram Finance has established,” he said. he declares.

On the outlook, he said the agricultural sector has become vibrant again with an almost normal monsoon, strong government purchases and improved seedlings from Kharif.

Regarding the automotive sector, he said the segment is facing challenges due to the global semiconductor shortage, which is negatively impacting production schedules.

“The recent lockdowns caused by a pandemic in East Asia compound the challenge. This, together with the relatively high input prices on fuel and commodities, presents the risk of slowing down the next festival season,” a- he declared.

On the commercial vehicle segment, company general manager Rajiv Lochan said, “In addition to the growth of medium and heavy commercial vehicle space, we believe that the small commercial and mid-size commercial vehicle segments will continue to grow. ‘offer growth opportunities’.

To a question from a shareholder, he said, “We expect the CV segment to make a strong comeback. In the passenger vehicle segment, we see a long way to go as the market continues to grow. consumption matures … ”

Noting that the infrastructure and the rural and agricultural sectors were seeing a substantial level of investment, he said, “we expect this to open up opportunities for growth in the construction equipment and tractor segments in the regions. years to come”.

“As we come out of the pandemic, we believe we are well positioned to take advantage of significant growth opportunities in these segments …” he added.

Factoring is a transaction in which accounts receivable from one entity, known as a factor, are paid by another entity, known as the ceding company.

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