Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — 9MFY22 Earnings Presentation
45 slides from Sundaram Finance's earnings presentation, Feb 8, 2022
Slide 1: Performance Highlights 9MFY22
PERFORMANCE HIGHLIGHTS 9MFY22
Slide 2: Contents
CONTENTS 01 02 03 04 05 Overview of Financial results & Key trends in financial Consolidated results More about Sundaram Finance performance performance Sundaram Finance 2
Slide 3: Overview of Sundaram Finance
01 Overview of Sundaram Finance 3
Slide 4: Our Vision, Mission and Philosophy
OUR VISION, MISSION AND PHILOSOPHY Service Vision P G Mission To be the most respected NBFC To deliver the “Sundaram in the country experience” to all our customers, Q big and small, in keeping with the ethos of the company Growth Quality Profitability 4
Slide 5: The Sundaram Way
THE SUNDARAM WAY Service Fair play Humility To be of service even when To stand for fair play when the To realise that humility is the time is against you odds are stacked against you greatest virtue Discipline Honesty Openness To know that discipline is To believe that honesty is the To be open to
Slide 6: The SF Group
THE SF GROUP AUM Branches Employees Customer count 29,796 612 4,228 5,26,134 7,299 158 2,362 28,37,944 Joint Venture with Ageas Insurance International NV 9,253 105 807 39,906 100% subsidiary 46,355 85 343 10,38,211 100% subsidiary Group 92,703 960 7,740 44,42,195 6
Slide 7: Strategic Sources of Distinctiveness
STRATEGIC SOURCES OF DISTINCTIVENESS 67-year heritage of trust Pioneer of hire-purchase Diversified financial services Lending business focused on the and prudence finance in India group across lending, general underserved but aspiring Indian insurance, home finance and entrepreneur (road transport
Slide 8: Product Offerings
PRODUCT OFFERINGS Asset Finance Commercial lending Working capital finance Distribution • Cars • Leasing • Diesel • General insurance • Commercial vehicles • NBFC • Insurance • Home loans • Construction equipment • SME • Tyre • Investment services • Tractors and farm equipment • Supply chain financi
Slide 9: Sundaram Finance – Performance Over Last Twenty Years
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Receivables Under Management 35,088 35,736 33,447 28,648 24,036 20,699 17,645 18,158 18,734 15,540 12,354 8,925 9,204 10,219 7,327 4,488 5,452 2,259 2,670 3,093 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-
Slide 10: Sundaram Finance – Performance Over Last Twenty Years
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore PAT 1,126 522 809 724 53 563 477 495 443 454 410 26 41 355 295 671 227 39 604 213 171 151 26 428 436 100 77 56 76 89 201 256 40 46 82 136 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15
Slide 11: Sundaram Finance – Performance Over Last Twenty Years
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Market Capitalization 28,560 17,940 18,634 17,318 16,859 14,450 13,366 7,359 5,265 3,645 2,096 2,722 1,078 1,099 1,602 917 240 256 533 782 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-1
Slide 12: Sundaram Finance – Performance Over Last Twenty Years
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS Return on Equity % 24.5 22.8 22.1 21.4 21.2 20.7 19.7 18.4 17.6 15.2 14.0 14.3 13.8 13.7 13.7 12.6 11.9 11.0 9.9 8.6 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar
Slide 13: Financial Results & Performance
02 Financial results & performance 13
Slide 14: Overall Highlights of Financial Performance
OVERALL HIGHLIGHTS OF FINANCIAL PERFORMANCE As of 31st December 2021 AUM Gross Stage 3 Cost-to-income ROA ROE ₹29,796 Crores 3.39% 30.13% 2.3% 12.5%* 4.6% down 3.45% 30.14% 2.2% 13.7% from Dec 20 in Sep 21 in 9MFY21 in 9MFY21 in 9MFY21 100% interim dividend (₹ 10 per share) declared *Core ROE (exclu
Slide 15: Highlights – Growth
HIGHLIGHTS – GROWTH Growth in disbursements was based on economic activity recovering from the pandemic and while demand remained strong, supply remained challenged across asset classes due to a range of issues, including the global semiconductor chip shortage. Disbursements for 9MFY22 recorded a gr
Slide 16: Highlights – Quality
HIGHLIGHTS – QUALITY Our asset quality continued to remain best-in-class although still off our traditional standards largely due to several sub-segments of customers – bus operators (tourism, staff, route transportation and schools), tourist taxi operators and small, 1-2 vehicle market load operato
Slide 17: Highlights – Profitability
HIGHLIGHTS – PROFITABILITY Profit growth was constrained by the need to create impairment provisions required by the stresses induced by the pandemic to several customer sub-segments. We remain confident in our credit filters, strong customer relationships and ongoing efforts by team Sundaram in nur
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore FY21 Particulars Q3FY21 Q3FY22 Q2FY22 9MFY21 9MFY22 3,917.00 Revenue From Operations* 1,034.49 947.14 1,011.76 2,959.67 2,900.25 60.46 Other Income 2.50 2.94 3.35 10.24 11.78 3,977.46 Total Revenue 1,036.99 950.08 1,015.11 2,969.91 2,912.03 2,030.73 Finance cost 50
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore 31-Mar-21 Particulars 31-Dec-20 30-Sep-21 31-Dec-21 Equity and Liabilities 28,724.24 Financial Liabilities 30,154.87 27,331.10 27,561.03 48.77 Non-Financial Liabilities 51.63 61.59 63.40 6,179.45 Equity 6,104.36 6,506.67 6,709.46 34,952.46 Total – Equity and Liabilities 36,3
Slide 20: Key Trends in Financial Performance
03 Key trends in financial performance 20
Slide 21: Financial Summary
FINANCIAL SUMMARY ₹ in Crore Receivables Market Year Paid-up Capital Networth Disbursements PAT Dividend % Under Management Capitalisation Mar-11 55.55 1,530 7,592 12,354 295.23 140 2,722 Mar-12 55.55 1,789 9,433 15,540 355.45 155 3,645 Mar-13 *111.10 2,087 9,991 17,645 410.11 90 5,265 Mar-14 111.10
Slide 22: Disbursements and AUM
DISBURSEMENTS AND AUM ₹ in Crore Disbursements AUM 17,170 15,712 15,175 30,882 31,226 28,984 29,936 3.2% 29,796 2.7% 4.6% 1.5% 13,218 4.8% 11,742 24,964 10.6% 9,524 20,735 8,437 24.8% 96.8% 3,843 95.2% 95.4% 97.3% 98.5% 4,334 89.4% 3,621 75.2% 3,174 929 2,060 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Dec-2
Slide 23: Disbursements
DISBURSEMENTS Dec-20 Dec-21 16.2% 4.3% CVs 9.7% 29.6% Cars 11.4% 12.5% 44.8% ₹ 8,437 Cr. ₹9,524 Cr. Construction Equipment Asset wise 13.8% Tractors 29.8% 27.9% Others Used Vehicles – 14.7% Used Vehicles – 19.3% 5.1% 4.3% South 10.3% 14.1% North ₹8,437 Cr. ₹9,524 Cr. 50.1% Region wise 26.9% 57.7% We
Slide 24: AUM
AUM Dec-20 Dec-21 8.7% 9.3% 7.2% CVs 8.1% Cars 11.2% 11.1% 45.7% ₹31,226 Cr. 48.2% ₹29,796 Cr. Construction Equipment Asset wise 24.7% 25.8% Tractors Others Used Vehicles – 15.3% Used Vehicles – 14.9% 4.1% 4.2% South 12.4% 12.8% North 21.2% ₹31,226 Cr. ₹29,796 Cr. Region wise 62.3% 24.4% 58.6% West
Slide 25: Portfolio Quality
PORTFOLIO QUALITY Gross Stage 3% Net Stage 3% 3.45% 3.39% 2.47% 2.12% 2.09% 1.84% 1.54% 1.65% 1.27% 1.33% 1.01% 0.83% 0.55% 0.66% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Dec-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Sep-21 Dec-21 Gross & Net Stage 3% - is as per IGAAP as on 31st Mar 17 25
Slide 26: Funding Mix
FUNDING MIX ₹ 19,373 Cr. ₹ 24,085 Cr. ₹ 26,673 Cr. ₹ 29,007 Cr. ₹ 29,251 Cr. ₹ 27,562 Cr. ₹ 27,635 Cr. 3.4% 2.5% 6.6% 3.1% 8.3% 7.7% 18.3% 11.6% 14.3% 15.5% 10.9% 13.2% 15.6% 12.4% 11.3% 9.8% 20.4% 8.1% 24.2% 16.7% 19.9% 15.5% 17.5% 28.2% 16.7% 25.4% 19.9% 7.0% 52.0% 52.2% 56.1% 45.7% 36.7% 39.2% 34
Slide 27: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,126 522 809 2.3 2.3 724 2.2 2.2 2.2 53 600 605 563 2.0 # 2.0 # 495 242 202 604 671 211 192 166 192 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 EPS (₹) 44.6 50.7 101.4 65.2 72.8 54.0 54.
Slide 28: Net Worth
NET WORTH Net worth 6,709 6,179 6,104 5,547 5,044 4,134 3,746 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 Book Value (₹) 337.1 372.1 454.0 499.3 556.2 549.4 603.9 28
Slide 29: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 23.6% 5.1 22.1% 5.0 4.9 4.9 4.6 19.4% 19.8% 18.0% 18.4% 17.9% 4.0 3.7 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 29
Slide 30: Consolidated Results
of | SUNDARAM FINANCE Enduring values. New age thinking. 04 Consolidated results
Slide 31: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Profit after Tax Net Worth 8,574 7,730 7,586 6,677 6,259 1,161 1,165 5,649 4,809 895 833 730 792 683 343 289 283 259 269 285 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Dec-20 Dec-21 EPS (₹) 61.5 66.3 105.4 71.9 105.7 81.2 75.6
Slide 32: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 31-Dec-20 31-Dec-21 9MFY21 9MFY22 Sundaram Finance Ltd. 6,104.36 6,709.46 599.85 604.61 Subsidiaries: Sundaram Finance Holdings Ltd. (Consolidated) 408.15 687.11 8.01 19.32 Sundaram Asset Management Company Ltd. (Consolid
Slide 33: Sundaram Home Finance
SUNDARAM HOME FINANCE 31-Mar-21 Particulars 31-Dec-20 31-Dec-21 1,254 Disbursements (₹ in Crore) 795 1,517 76.1% Housing 79.6% 69.7% 23.9% Non-Housing 20.4% 30.3% 9,173 AUM (₹ in Crore) 9,373 9,253 70.0% Housing 69.7% 70.3% 30.0% Non-Housing 30.3% 29.7% 192 PAT (₹ in Crore)* 155 115 18.93 EPS (₹) (a
Slide 34: Royal Sundaram
ROYAL SUNDARAM 31-Mar-21 Particulars 31-Dec-20 31-Dec-21 2,883 Gross Written Premium (₹ in Crores) 2,081 2,147 313 PAT (₹ in Crores) 289 189 26 Other Comprehensive Income (Net of Taxes) 128 (29) 339 Total Comprehensive Income 417 160 1,429 Net worth (₹ in Crores) 1,507 1,589 110% Combined Operating
Slide 35: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT 31-Mar-21 Particulars 31-Dec-20 31-Dec-21 41,196 AUM (₹ in Crores) 39,803 46,355 31,709 Equity (₹ in Crores) 30,691 37,679 9,487 Debt (₹ in Crores) 9,112 8,676 55 PAT (₹ in Crores) 31 73 254 Net worth (₹ in Crores) 230 362 359 Employees 372 343 10,24,674 Retail Investors 10
Slide 36: More about Sundaram Finance
05 More about Sundaram Finance 36
Slide 37: Shareholding Pattern
SHAREHOLDING PATTERN 31-Dec-20 31-Dec-21 Top institutional shareholders As of 31st December 2021 Name of Shareholder Share % Axis Mutual Fund Trustee Limited 4.62 Nalanda India Equity Fund Limited 3.78 36.6% 35.9% 35.6% 35.9% India Motor Parts & Accessories Limited 2.61 Bright Star Investments Pvt L
Slide 38: Branch Network
BRANCH NETWORK 31-Dec-20 31-Dec-21 40 40 64 66 320 327 159 179 No. of Branches: 583 No. of Employees: 4,189 No. of Branches: 612 No. of Employees: 4,228 South North West East 38
Slide 39: Credit Ratings
CREDIT RATINGS Instrument ICRA CRISIL Deposits AAA (Stable) AAA (Stable) Debentures AAA (Stable) AAA (Stable) Subordinated Debentures AAA (Stable) AAA (Stable) Long Term Loans AAA (Stable) AAA (Stable) Working Capital Facilities AAA (Stable) Commercial Paper A1+ A1+ Short Term Loans A1+ 39
Slide 40: Share Price Movement
SHARE PRICE MOVEMENT Indexed share price and Nifty from March 2017 189.17 141.66 Dec-17 Dec-18 Dec-19 Dec-21 Mar-17 Mar-18 Mar-19 Jun-17 Sep-17 Jun-18 Sep-18 Jun-19 Sep-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 SFL Closing Share Price S & P CNX Nifty Share price movement after 1st Feb 2018
Slide 41: Subsidiaries, Joint Ventures & Associates
SUBSIDIARIES, JOINT VENTURES & ASSOCIATES Subsidiaries Joint Venture • Sundaram Home Finance Limited • Royal Sundaram General Insurance Co. Limited • Sundaram Finance Holdings Limited • Sundaram Business Services Limited • Sundaram Asset Management Company Limited Associates of a Subsidiary Company
Slide 42: Board of Directors
BOARD OF DIRECTORS Sri S Viji Sri S Ram * Sri Raghuttama Rao Raghavendra Chairman Non-executive Director Independent Director Has over 5 decades of experience in Banking, Has over 5 decades of work experience in Vehicle Has over 3 decades of work experience spanning Finance, Insurance and Automotive
Slide 43: Board of Directors
BOARD OF DIRECTORS Sri L Ganesh Ms Shobhana Ramachandhran Sri T T Srinivasaraghavan Independent Director Independent Director Non-executive Director Has over 44 years of Industrial experience in and 3 decades of experience in General Management Has over 4 decades of experience in Banking and overall
Slide 44: Key Managerial Personnel
KEY MANAGERIAL PERSONNEL Sri M. Ramaswamy Sri P. Viswanathan Chief Financial Officer Company Secretary & Compliance Officer He has over 35 years of experience in the Company. He is the Chief He has over 45 years of experience in the Company/Group. He became the Financial Officer of the Company from
Slide 45: Shri M Ramaswamy Shri P Viswanathan
This document is for information purposes only and is not and does not form part of an invitation/ offer/advertisement/advise to purchase or sell any securities of the Company. The materials and information contained in the document are prepared by the Company and are correct and accurate, to the be