Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — FY2024 Earnings Presentation
46 slides from Sundaram Finance's earnings presentation, May 24, 2024
Slide 1: Performance Highlights FY24
PERFORMANCE HIGHLIGHTS FY24
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 Pru y de pla n ce ir Fa Hone sty Vision P G Mission Integrity To be the most respected NBFC To deliver the “Sundaram Humi in the country experience” to all our customers, Q big and small, in keeping with the lity ethos of the company Op ne li en ne ss ip D
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 Staff * Customer count 43,987 710 7,459 5,73,127 8,673 161 2,708 30,33,437 Joint Venture with Ageas Insurance International NV 13,812 138 1,548 59,620 100% subsidiary 70,883 85 555 13,49,667 100% subsidiary Group 1,37,355 1,094 12,270 50,15,851 * Includes off roll employees
Slide 7: Strategic Sources of Distinctiveness
STRATEGIC SOURCES OF DISTINCTIVENESS 69-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 • Fixed Deposits • Commercial vehicles • NBFC • Insurance • General insurance • Construction equipment • SME • Tyre • Home loans • Tractors and farm equipment • Supply chain financing •
Slide 9: Performance Over Last Twenty Years: Receivables Under Management
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Receivables Under Management 51,385 39,950 35,088 35,736 33,774 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 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 M
Slide 10: Performance Over Last Twenty Years: PAT
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore PAT 1,454 120 1,126 1,088 903 522 809 724 53 1,334 563 410 477 495 443 454 355 26 41 295 671 213 227 39 563 604 171 151 26 436 495 76 100 77 355 89 256 151 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Ma
Slide 11: Performance Over Last Twenty Years: Market Capitalization
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Market Capitalization 45,983 28,560 25,548 21,560 16,859 17,940 18,634 17,318 14,450 13,366 7,359 5,265 2,722 3,645 1,078 1,099 1,602 917 2,096 782 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
Slide 12: Performance Over Last Twenty Years: Core Return on Equity
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS Core Return on Equity %* 28.3 26.8 23.5 19.5 19.9 19.3 18.8 18.2 18.5 18.0 18.0 17.0 16.5 16.5 16.3 14.9 15.5 15.3 13.0 12.6 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 Mar-21 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 March 2024 AUM Gross Stage 3 Cost-to-income ROA ROE ₹43,987 Crores 1.26% 34.69% 3.18% 17.5%* 27.3% up 1.66% 34.26% 2.84% 14.9% from Mar 23 in Mar 23 in FY23 in FY23 in FY23 160% final dividend (₹ 16/- per share) declared. Total dividend for FY24
Slide 15: Highlights – Growth of 25% in Core Business
HIGHLIGHTS – GROWTH OF 25% IN CORE BUSINESS Economic activity in the automotive sector was muted in the second half of the year. Several asset classes declined YOY with others recording single digit growth. For the year, commercial vehicles grew 2-3% YOY and passenger cars were up 8-9%; however, tra
Slide 16: Highlights – Asset Quality Continues to Remain Industry Best
HIGHLIGHTS – ASSET 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. Collections performance has
Slide 17: Highlights – Profitability Improved Consistently
HIGHLIGHTS – PROFITABILITY IMPROVED CONSISTENTLY Profits after tax grew 23% (excluding exceptional item) over FY23 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
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore Particulars Q4FY23 Q4FY24 Q3FY24 FY23 FY24 Revenue From Operations* 1,035 1,544 1,321 3,984 5,387 Other Income 51 (1) 6 64 14 Total Revenue 1,086 1,543 1,327 4,048 5,401 Finance cost 491 724 694 1,780 2,576 Operating expenses 173 215 222 714 854 Impairment 17 138 2
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore Particulars 31-Mar-23 31-Mar-24 Equity and Liabilities Financial Liabilities 33,254 41,431 Non-Financial Liabilities 68 85 Equity 7,737 9,472 Total – Equity and Liabilities 41,059 50,988 Assets Financial Assets 39,938 49,942 Non-Financial Assets 1,121 1,046 Total – Assets 41
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-13 *111 2,087 9,991 17,645 410 90 5,265 Mar-14 111 2,405 9,719 18,158 443 100 7,359 Mar-15 111 2,978 10,012 18,734 454 105 16,859 Mar-16 111 3,313 11,444 20,
Slide 22: Disbursements and AUM
DISBURSEMENTS AND AUM ₹ in Crore Disbursements AUM 26,163 43,987 20,966 6,209 34,552 5,259 29,936 30,882 15,175 6524 29,532 13,275 11,742 5653 6941 5139 6489 4915 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Growth -11.6% -22.6% 13.1% 57.9% 24.8% Growth 3.3% 3.2% -4.4% 17.0%
Slide 23: Disbursements
DISBURSEMENTS Mar-23 Mar-24 6.9% 1.6% 2.4% MHCV 8.8% Retail CV 7.7% 25.8% 31.1% 7.4% Cars 10.8% ₹ 20,966 Cr. 11.2% ₹ 26,163 Cr. Construction Equipment Asset wise Tractors 20.9% 24.2% 17.7% 23.5% Commercial Lending Used Assets – 22.4% Used Assets – 22.8% Others 4.4% 4.5% South 13.4% 13.1% North ₹ 20,
Slide 24: AUM
AUM Mar-23 Mar-24 5.4% 5.0% MHCV 4.1% 7.2% Retail CV 8.0% 24.4% 29.3% 7.5% Cars 10.7% ₹ 34,552 Cr. 10.6% ₹ 43,987 Cr. Construction Equipment Asset wise Tractors 21.3% 17.5% 25.0% 24.0% Commercial Lending Used Assets – 18.4% Used Assets – 18.3% Others 4.4% 4.3% South 13.5% 14.0% North ₹ 34,552 Cr. 54
Slide 25: Branch Network
BRANCH NETWORK Mar-23 Mar-24 7 41 12 40 81 76 356 337 211 220 No. of Branches: 671 No. of Staffs: 7,199 No. of Branches: 710 No. of Staffs: 7,459 South North West East Commercial Lending 25
Slide 26: Portfolio Quality
PORTFOLIO QUALITY Gross Stage 3% Net Stage 3% 2.47% 2.19% 1.84% 1.66% 1.65% 1.26% 1.01% 1.07% 0.86% 0.63% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 26
Slide 27: Funding Mix
FUNDING MIX ₹ 29,007 Cr. ₹ 29,251 Cr. ₹ 28,297 Cr. ₹ 32,915 Cr. ₹ 40,941 Cr. 0.0% 7.7% 2.5% 6.8% 4.7% 14.3% 15.1% 13.2% 14.8% 14.2% 11.3% 11.0% 11.4% 11.5% 16.7% 19.9% 19.9% 16.7% 25.9% 35.8% 52.0% 54.0% 45.7% 41.1% 33.8% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Debentures Bank Borrowings* Securitisation
Slide 28: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,454 120 3.2 1,088 386 2.8 903 809 316 2.5 724 300 2.3 # 53 243 2.0 # 366 671 303 226 282 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 EPS (₹) 65.2 72.8 81.3 98.0 130.9 # adjusted for exceptional item Q1 Q2 Q3 Q4 Ex
Slide 29: Net Worth
NET WORTH ₹ in Crore Net worth 9,472 7,737 6,893 6,179 5,547 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Book Value (₹) 499.3 556.2 620.4 696.4 852.5 29
Slide 30: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 4.9 4.6 24.4% 4.3 22.8% 4.2 22.1% 4.0 20.5% 18.4% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 30
Slide 31: Consolidated Results
of | SUNDARAM FINANCE Enduring values. New age thinking. 04 Consolidated results
Slide 32: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Profit after Tax Net Worth 11,078 1,436 9,920 1,328 8,795 1,165 1,173 268 7,730 443 6,677 792 427 333 366 306 375 246 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Book Value EPS (₹) 71.9 105.7 106.5 120.5 130.3 606.1 701.6 798.2 900.2 1005.3 (
Slide 33: Consolidated Results by Entity
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 31-Mar-23 31-Mar-24 FY23 FY24 Sundaram Finance Ltd. 7,737 9,472 1,088 1,454 Subsidiaries: Sundaram Home Finance Ltd. 1,805 1,880 215 236 Sundaram Finance Holdings Ltd. (Consolidated)* 839 - 56 125 Sundaram Asset Managemen
Slide 34: Sundaram Home Finance
SUNDARAM HOME FINANCE Particulars Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 Disbursements (₹ in Crore) 1,469 1,252 1,204 5,029 3,901 Housing 52.1% 53.2% 54.6% 50.9% 55.6% Non-Housing 47.9% 46.8% 45.4% 49.1% 44.4% AUM (₹ in Crore) 13,812 12,973 11,181 13,812 11,181 Housing 61.0% 61.7% 64.9% 61.0% 64.9% Non-H
Slide 35: Royal Sundaram
ROYAL SUNDARAM Particulars Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 Gross Written Premium (₹ in Crore) 1,033 974 938 3,825 3,517 AUM (₹ in Crore) 8,673 8,513 7,673 8,673 7,673 PAT (₹ in Crore) (9) 33 38 169 44 Other Comprehensive Income (Net of Taxes) 34 4 1 61 (121) Total Comprehensive Income 26 37 39 230
Slide 36: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT Particulars Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 AUM (₹ in Crores) 70,883 67,272 54,719 70,883 54,719 Equity (₹ in Crores) 61,241 57,784 45,748 61,241 45,748 Debt (₹ in Crores) 9,642 9,488 8,971 9,642 8,971 PAT (₹ in Crores) 38 26 19 112 85 Net worth (₹ in Crores) 431 489 454
Slide 37: More about Sundaram Finance
05 More about Sundaram Finance 37
Slide 38: Shareholding Pattern
SHAREHOLDING PATTERN 31-Mar-23 31-Mar-24 Top institutional shareholders As of 31st March 2024 Name of Shareholder Share % Axis Mutual Fund 3.92 Nalanda India Equity Fund Limited 3.78 32.1% 32.8% 38.5% 37.9% Bright Star Investments Private Limited 2.37 SBI Mutual Fund 1.35 HSBC Mutual Fund 1.31 HDF L
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
Mar-19 Jun-19 Sep-19 Dec-19 SHARE PRICE MOVEMENT Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 SFL Closing Share Price Sep-21 Dec-21 Mar-22 Indexed share price and Nifty from March 2019 Jun-22 S & P CNX Nifty Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 192.08 265.47 40
Slide 41: Subsidiaries & Joint Ventures
SUBSIDIARIES & JOINT VENTURES Subsidiaries Joint Venture • Sundaram Home Finance Limited • Royal Sundaram General Insurance Company Limited • Sundaram Asset Management Company Limited • Sundaram Asset Management Singapore Pte. Limited • Sundaram Trustee Company Limited • Sundaram Alternate Assets Li
Slide 42: Board of Directors as on 24.05.2024
BOARD OF DIRECTORS AS ON 24.05.2024 Sri S. Viji Sri T. T. Srinivasaraghavan Sri Srivats Ram Chairman Non-executive Director Non-executive Director Has over 5 decades of experience in Banking, Finance, Has over 4 decades of experience in Banking and Financial Has nearly 3 decades of rich experience i
Slide 43: Board of Directors as on 24.05.2024
BOARD OF DIRECTORS AS ON 24.05.2024 Ms Bhavani Balasubramanian Dr. Kshama Fernandes Sri R. Venkatraman Independent Director Independent Director Independent Director Has over 4 decades of audit experience including Has close to 4 decades of experience in consulting and Has nearly 3 decades of experi
Slide 44: Board of Directors as on 24.05.2024
BOARD OF DIRECTORS AS ON 24.05.2024 Sri Harsha Viji Sri Rajiv C. Lochan Sri A. N. Raju Executive Vice Chairman Managing Director Deputy Managing Director Has more than 2 decades of experience in areas of Has nearly 3 decades of experience in the field of Has nearly 4 decades of experience in the spe
Slide 45: Key Managerial Personnel
KEY MANAGERIAL PERSONNEL Sri M. Ramaswamy Sri P. N. Srikant Chief Financial Officer Chief Compliance Officer & Company Secretary He has nearly 4 decades of experience in the Company. He is the Chief He has nearly 3 decades of experience in the Company/Group. He is the Chief Financial Officer of the
Slide 46: 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