Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — 9M FY23 Earnings Presentation
45 slides from Sundaram Finance's earnings presentation, Feb 6, 2023
Slide 1: Performance Highlights 9M FY23
PERFORMANCE HIGHLIGHTS 9M FY23
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 33,558 652 4,656 5,30,338 7,744 161 2,424 33,77,529 Joint Venture with Ageas Insurance International NV 10,564 114 1028 40,605 100% subsidiary 56,791 85 377 14,19,082 100% subsidiary Group 1,08,657 1,012 8,485 53,67,554 6
Slide 7: Strategic Sources of Distinctiveness
STRATEGIC SOURCES OF DISTINCTIVENESS 68-year heritage of trust Pioneer of hire-purchase Diversified financial services group Lending business focused on and prudence finance in India across lending, general insurance, the underserved but home finance and asset aspiring Indian management with total A
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 (Receivables)
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Receivables Under Management 35,088 35,736 33,447 33,774 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 2,670 3,093 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar
Slide 10: Sundaram Finance – Performance Over Last Twenty Years (PAT)
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore PAT 1,126 903 522 809 724 53 563 477 495 443 454 410 26 41 295 355 671 213 227 39 171 436 495 151 26 100 77 355 56 76 89 256 46 151 100 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 M
Slide 11: Sundaram Finance – Performance Over Last Twenty Years (Market Cap)
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Market Capitalization 28,560 21,560 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 1,602 917 256 533 782 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 Ma
Slide 12: Sundaram Finance – Performance Over Last Twenty Years (ROE)
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 13.8 13.7 13.7 12.6 11.9 11.0 9.9 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-20 Ma
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 2022 AUM Gross Stage 3 Cost-to-income ROA ROE ₹33,558 Crores 2.43% 32.23% 2.8% 14.2%* 12.6% up 3.39% 29.96% 2.3% 12.5% from Dec 21 in Dec 21 in 9MFY22 in 9MFY22 in 9MFY22 120% interim dividend (₹ 12 per share) declared *Core ROE (exclud
Slide 15: Highlights – Growth of 66% in Core Business
HIGHLIGHTS – GROWTH OF 66% IN CORE BUSINESS Economic activity continued to improve across all segments during 9M FY23 despite global geo-political tensions and consequent inflation and monetary policy actions. Growth in disbursements was driven by sharp focus on ensuring rightful market share in all
Slide 16: Highlights – Quality Continues to Remain Industry Best
HIGHLIGHTS – QUALITY CONTINUES TO REMAIN INDUSTRY BEST Our asset quality continued to remain best-in-class with continuing improvement in collections & recovery activity. Current collections are back to pre-Covid levels and Gross Stage 3 assets continued to improve. During Q2 FY23, we have adopted,
Slide 17: Highlights – Profitability Improved Consistently
HIGHLIGHTS – PROFITABILITY IMPROVED CONSISTENTLY Profits after tax grew 28% over 9M FY22 due to continuing improvements in asset quality, tight control on costs, meticulous management of our cost of borrowing in a rising interest rate regime consistent with our “AAA” rating and ensuring prudent focu
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore FY22 Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 3,827.64 Revenue From Operations* 991.70 1,034.23 947.14 2,949.53 2,900.25 20.43 Other Income 2.28 3.77 2.94 12.78 11.78 3,848.07 Total Revenue 993.98 1,038.00 950.08 2,962.31 2,912.03 1,700.11 Finance cost 4
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore 31-Mar-22 Particulars 31-Dec-22 30-Sep-22 31-Dec-21 Equity and Liabilities 28,323.23 Financial Liabilities 30,734.62 28,758.35 27,514.49 71.20 Non-Financial Liabilities 63.68 59.24 63.41 6,893.09 Equity 7,557.94 7,315.24 6,709.46 35,287.52 Total – Equity and Liabilities 38,3
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-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 2,405 9,719 18,158 442.51 100 7,359 Mar-15 111.1
Slide 22: Disbursements and AUM
DISBURSEMENTS AND AUM ₹ in Crore Disbursements AUM 17,170 33,558 0.4% 15,712 15,175 15,587 30,882 29,532 29,796 28,984 29,936 2.7% 1.5% 13,275 4.6% 1.2% 4.8% 11,742 5,553 24,964 10.6% 9,524 99.6% 3,843 5,139 95.2% 95.4% 97.3% 98.8% 98.5% 89.4% 3,621 4,895 2,060 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec
Slide 23: Disbursements
DISBURSEMENTS Dec-21 Dec-22 4.3% 5.6% MHCV 9.7% 8.0% Retail CV 25.3% 30.3% 11.4% 10.9% Cars ₹ 9,524 Cr. ₹15,587 Cr. Construction Equipment Asset wise 19.5% Tractors 29.8% 26.8% 18.4% Others Used Assets – 22.8% Used Assets – 23.0% 4.3% 4.6% South 14.1% 12.0% North ₹ 9,524 Cr. 50.1% ₹ 15,587 Cr. 56.1%
Slide 24: AUM
AUM Dec-21 Dec-22 9.3% 8.6% MHCV Retail CV 8.1% 28.5% 8.0% 28.6% Cars 11.1% 10.8% ₹ 29,796 Cr. ₹33,558 Cr. Construction Equipment Asset wise 17.2% 17.7% Tractors 25.8% 26.3% Others Used Assets – 17.7% Used Assets – 18.2% 4.2% 4.5% South 12.8% 12.8% North ₹ 29,796 Cr. ₹ 33,558 Cr. 56.2% Region wise 2
Slide 25: Portfolio Quality
PORTFOLIO QUALITY Gross Stage 3% Net Stage 3% 3.39% 2.47% 2.43% 2.19% 2.09% 1.84% 1.65% 1.27% 1.33% 1.35% 1.01% 1.07% 0.83% 0.66% Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 25
Slide 26: Funding Mix
FUNDING MIX ₹ 24,085 Cr. ₹ 26,673 Cr. ₹ 29,007 Cr. ₹ 29,251 Cr. ₹ 28,297 Cr. ₹ 27,635 Cr. ₹ 30,389 Cr. 0.0% 3.4% 2.5% 3.1% 8.3% 7.7% 9.0% 11.6% 14.3% 15.1% 15.5% 10.9% 13.2% 15.2% 11.3% 11.0% 20.4% 9.8% 16.7% 8.3% 24.2% 19.9% 19.9% 15.5% 16.7% 22.1% 25.4% 19.9% 52.0% 54.0% 56.1% 45.7% 45.4% 36.7% 39
Slide 27: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,126 2.8 904 2.5 522 809 772 2.3 2.3 724 2.2 53 605 563 243 2.0 # 2.0 # 202 809 303 604 671 211 192 226 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 EPS (₹) 50.7 101.4 65.2 72.8 81.3 54.4
Slide 28: Net Worth
NET WORTH ₹ in Crore Net worth 7,558 6,893 6,709 6,179 5,547 5,044 4,134 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Book Value (₹) 372.1 454.0 499.3 556.2 620.4 603.9 680.3 28
Slide 29: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 24.2% 23.6% 23.3% 5.1 22.1% 5.0 4.9 4.6 19.4% 18.0% 18.4% 4.0 4.0 4.0 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 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 9,612 8,795 8,574 7,730 6,677 6,259 1,161 1,165 1,173 5,649 833 885 730 792 289 333 259 306 285 246 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Dec-21 Dec-22 EPS (₹) 66.3 105.4 71.9 105.7 106.5 75.6 80
Slide 32: Consolidated Results by Entity
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 31-Dec-22 31-Dec-21 9M FY23 9M FY22 Sundaram Finance Ltd. 7,557.94 6,709.46 771.95 604.61 Subsidiaries: Sundaram Finance Holdings Ltd. (Consolidated) 824.25 687.11 32.64 19.32 Sundaram Asset Management Company Ltd. (Conso
Slide 33: Sundaram Home Finance
SUNDARAM HOME FINANCE FY22 Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 2,311 Disbursements (₹ in Crore) 961 940 626 2,697 1,517 66.3% Housing 62.4% 66.4% 67.0% 66.6% 69.7% 33.7% Non-Housing 37.6% 33.6% 33.0% 33.4% 30.3% 9,495 AUM (₹ in Crore) 10,564 10,177 9,253 10,564 9,253 69.6% Housing 69
Slide 34: Royal Sundaram
ROYAL SUNDARAM FY22 Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 2,966 Gross Written Premium (₹ in Crore) 934 847 727 2,579 2,147 7,282 AUM (₹ in Crore) 7,744 7,444 7,299 7,744 7,299 172 PAT (₹ in Crore) 5 35 37 6 189 (54) Other Comprehensive Income (Net of Taxes) 10 6 (55) (122) (29) 118 Tot
Slide 35: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT FY22 Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 53,860 AUM (₹ in Crores) 56,791 52,561 46,355 56,791 46,355 46,073 Equity (₹ in Crores) 48,034 44,982 37,679 48,034 37,679 7,787 Debt (₹ in Crores) 8,757 7,579 8,676 8,757 8,676 72 PAT (₹ in Crores) 20 16 25 54 73 364
Slide 36: More about Sundaram Finance
05 More about Sundaram Finance 36
Slide 37: Shareholding Pattern
SHAREHOLDING PATTERN 31-Dec-21 31-Dec-22 Top institutional shareholders As of 31st December 2022 Name of Shareholder Share % Axis Mutual Fund 5.53 Nalanda India Equity Fund Limited 3.78 32.3% 35.6% 35.9% 38.5% ICICI Prudential Mutual Fund 2.84 Bright Star Investments Pvt Ltd. 2.37 HDFC Life Insuranc
Slide 38: Branch Network
BRANCH NETWORK 31-Dec-21 31-Dec-22 40 41 66 74 327 334 179 203 No. of Branches: 612 No. of Employees: 4,228 No. of Branches: 652 No. of Employees: 4,656 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 197.36 142.75 Mar-17 Dec-17 Mar-18 Dec-18 Mar-19 Dec-19 Mar-20 Dec-20 Mar-21 Dec-21 Mar-22 Dec-22 Jun-17 Sep-17 Jun-18 Sep-18 Jun-19 Sep-19 Jun-20 Sep-20 Jun-21 Sep-21 Jun-22 Sep-22 SFL Closing Share Price S & P CNX Nifty Share price
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 Prasad Sri Raghuttama Rao Raghavendra Chairman Independent Director Independent Director Has over 5 decades of experience in Banking, Has more than a decade of experience in industry as Has over 3 decades of work experience spanning Finance, Insurance and Automoti
Slide 43: Board of Directors
BOARD OF DIRECTORS Ms Shobhana Ramachandhran Sri T T Srinivasaraghavan Sri Srivats Ram Independent Director Non-executive Director Non-executive Director Has 3 decades of experience in General Has over 4 decades of experience in Banking and Has more than 2 decades of rich experience in auto Manageme
Slide 44: Key Managerial Personnel
KEY MANAGERIAL PERSONNEL Sri M. Ramaswamy Sri P N Srikant Chief Financial Officer Company Secretary & Compliance Officer He has over 35 years of experience in the Company. He is the Chief He has over 27 years of experience in the Company/Group. He became the Financial Officer of the Company from Sep
Slide 45: Sri M Ramaswamy Sri P N Srikant
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