CHENNAI: Non-banking finance company Sundaram Finance would deploy all measures available to support loyal customers, drive collections and recovery efforts to maintain asset quality levels besides prudently pursuing growth opportunities in the aftermath of the Covid-19 pandemic, a top official said on Monday.
Sundaram Finance Chairman S Viji said the focus area would continue to remain on striking a balance between Growth, Quality and Profitability (GQP), a time tested trinity that has served the company well.
"Key priorities will be to support loyal customers tide over the aftermath of the Covid-19 crisis by deploying all measures made available by the regulator and government, drive collections and recovery efforts to maintain traditional asset quality levels and preserving capital," he said while addressing shareholders at the 68th AGM.
"...prudently pursuing growth opportunities that emerge as economic activity resumes post second wave of the pandemic across the well-understood and diversified asset class base that Sundaram Finance has established," he said.
On the outlook, he said the agricultural sector has turned buoyant with a near normal monsoon, robust procurement by the government and improved Kharif sowing. On the automotive sector, he said the segment was facing challenges due to global shortage of semi-conductors, adversely impacting production schedules.
"Recent pandemic-driven lock-downs in East Asia are compounding the challenge. This, coupled with relatively high input prices on fuel and commodities, presents the risk of a dampener to the upcoming festival season," he said.
On the commercial vehicle segment, company MD, Rajiv Lochan said, "in addition to the growth in medium and heavy commercial vehicle space, we believe the small commercial and intermediate commercial vehicle segments will continue to offer growth opportunities."
To a query raised by a shareholder, he said, "we expect the CV segment to come back strongly. In the passenger vehicle segment, we see a long run way as the consumer market matures..."
Noting that the infrastructure and rural and agricultural sectors were witnessing substantial level of investments, he said, "we expect this to open up growth opportunities in the construction equipment and tractor segments in the coming years."
"As we come out of the pandemic, we feel we are well positioned to take advantage of the significant growth opportunities in these segments...," he added.