Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — H1 FY2025 Earnings Presentation
45 slides from Sundaram Finance's earnings presentation, Nov 4, 2024
Slide 1: Performance Highlights H1FY25
PERFORMANCE HIGHLIGHTS H1FY25
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 48,058 709 7,460 5,88,061 9,078 157 2,388 31,37,285 Joint Venture with Ageas Insurance International NV 15,405 146 1,692 63,653 100% subsidiary 76,845 85 576 14,03,146 100% subsidiary Group 1,49,386 1,097 12,116 51,92,145 * Includes off roll employees
Slide 7: Strategic Sources of Distinctiveness
STRATEGIC SOURCES OF DISTINCTIVENESS 70-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: Sundaram Finance – Performance Over Last Twenty Years
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: Sundaram Finance – Performance Over Last Twenty Years
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: Sundaram Finance – Performance Over Last Twenty Years
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: Sundaram Finance – Performance Over Last Twenty Years
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 30th September 2024 AUM Gross Stage 3 Cost-to-income ROA ROE ₹48,058 Crores 1.62% 32.27% 2.50% 14.2%* 19.8% up 1.86% 35.18% 2.95% 16.2% from Sep 23 in Sep 23 in H1FY24 in H1FY24 in H1FY24 *Core ROE (excluding investments in subsidiaries) at 17.5% vs.
Slide 15: Highlights – Growth of 20% in Assets Under Management
HIGHLIGHTS – GROWTH OF 20% IN ASSETS UNDER MANAGEMENT Q2 FY25 has been an even more sluggish quarter compared to Q1 FY25 which was disrupted by the general elections and a heat wave across the country. While the monsoons have been normal, macroeconomic activity has remained muted. All segments of au
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 despite significant asset quality concerns system-wide, particularly in the microfinance and unsecured personal lending segm
Slide 17: Highlights – Profitability Improved Consistently
HIGHLIGHTS – PROFITABILITY IMPROVED CONSISTENTLY Profits from Operations grew 23% in H1FY25 compared to last year due to growth of AUM, meaningful improvements in spread, tight control on operating costs, meticulous management of our cost of borrowing consistent with our “AAA” rating. We are ensurin
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore FY24 Particulars Q2FY24 Q2FY25 Q1FY25 H1FY24 H1FY25 5,041 Revenue From Operations* 1,223 1,547 1,425 2,341 2,972 346 Dividend Income 130 25 18 181 43 14 Other Income 3 11 8 10 19 5,401 Total Revenue 1,356 1,583 1,451 2,532 3,034 2,576 Finance cost 613 811 757 1,158
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore 31-Mar-24 Particulars 30-Sep-23 30-Sep-24 Equity and Liabilities 41,431 Financial Liabilities 38,405 44,257 85 Non-Financial Liabilities 60 126 9,472 Equity 8,219 10,587 50,988 Total – Equity and Liabilities 46,684 54,970 Assets 49,942 Financial Assets 45,586 53,929 1,046 No
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-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 20,699 477 110 14,450 Mar-17 111 3,746 13,218 2
Slide 22: Disbursements and AUM
DISBURSEMENTS AND AUM ₹ in Crore Disbursements AUM 26,163 48,058 43,987 20,966 40,106 34,552 15,175 29,936 30,882 29,532 13,275 13,430 13,768 11,742 6941 6860 6489 6908 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 Growth -11.6% -22.6% 13.1% 57.9%
Slide 23: Disbursements
DISBURSEMENTS Sep-23 Sep-24 1.9% 3.2% MHCV 8.6% Retail CV 12.0% 22.7% 7.2% 26.1% 6.7% Cars 11.1% ₹ 13,430 Cr. ₹ 13,768 Cr. Construction Equipment 10.6% Asset wise 21.9% Tractors 21.5% 23.6% 22.9% Commercial Lending Used Assets – 22.1% Used Assets – 24.0% Others 4.8% 4.3% South 13.4% 12.3% North ₹ 13
Slide 24: AUM
AUM Sep-23 Sep-24 5.0% 5.5% MHCV 6.0% 7.6% Retail CV 7.6% 24.5% 24.0% 7.2% Cars 10.6% ₹ 40,106 Cr. 10.4% ₹ 48,058 Cr. Construction Equipment Asset wise Tractors 21.9% 21.5% 24.4% 23.8% Commercial Lending Used Assets – 18.3% Used Assets – 18.6% Others 4.5% 4.3% South 13.5% 13.1% North ₹ 40,106 Cr. ₹
Slide 25: Branch Network
BRANCH NETWORK Sep-23 Sep-24 10 40 13 41 81 81 342 358 219 217 No. of Branches: 693 No. of Staffs: 7,813 No. of Branches: 709 No. of Staffs: 7,460 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% 1.86% 1.66% 1.62% 1.65% 1.26% 1.01% 1.07% 1.08% 0.86% 0.89% 0.63% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 26
Slide 27: Funding Mix
FUNDING MIX ₹ 29,007 Cr. ₹ 29,251 Cr. ₹ 28,297 0.0%Cr. ₹ 32,915 Cr. ₹ 40,941 Cr. ₹ 37,976 Cr. ₹ 43,752 Cr. 7.7% 2.5% 6.8% 4.7% 4.1% 15.1% 10.9% 14.3% 14.2% 14.2% 13.2% 14.8% 11.0% 14.2% 11.3% 11.5% 10.4% 16.7% 11.4% 8.0% 19.9% 19.9% 16.7% 25.9% 35.8% 39.0% 34.1% 52.0% 54.0% 45.7% 41.1% 33.8% 32.8% 3
Slide 28: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,454 120 3.2 3.0 1,088 2.8 903 2.5 2.5 809 2.3 # 724 53 1,334 648 648 2.0 # 671 367 340 281 308 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 EPS 65.2 72.8 81.3 98.0 130.9 58.3 58.3 (₹) Q1
Slide 29: Net Worth
NET WORTH ₹ in Crore Net worth 10,587 9,472 8,219 7,737 6,893 6,179 5,547 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 Book Value (₹) 499.3 556.2 620.4 696.4 852.5 739.8 952.9 29
Slide 30: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 4.9 4.6 4.6 24.4% 4.3 22.8% 4.2 22.1% 4.1 20.5% 4.0 19.9% 20.0% 18.4% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-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 12,510 1,436 11,078 1,328 10,584 9,920 1,165 1,173 8,795 7,730 871 6,677 792 741 436 366 375 435 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-23 Sep-24 EPS Book 71.9 105.7 106.5 120.5 130.3 67.3 79.
Slide 33: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 30-Sep-23 30-Sep-24 H1FY24 H1FY25 Sundaram Finance Ltd. 8,219 10,587 648 648 Subsidiaries: Sundaram Home Finance Ltd. 1,821 1,990 117 111 Sundaram Finance Holdings Ltd. (Consolidated)* 935 - 38 - Sundaram Asset Management
Slide 34: Sundaram Home Finance
SUNDARAM HOME FINANCE FY24 Particulars Q2FY25 Q1FY25 Q2FY24 H1FY25 H1FY24 5,029 Disbursements (₹ in Crore) 1,543 1,353 1,213 2,896 2,307 50.9% Housing 50.8% 54.2% 46.8% 52.4% 48.9% 49.1% Non-Housing 49.2% 45.8% 53.2% 47.6% 51.1% 13,812 AUM (₹ in Crore) 15,405 14,533 12,332 15,405 12,332 61.0% Housin
Slide 35: Royal Sundaram
ROYAL SUNDARAM FY24 Particulars Q2FY25 Q1FY25 Q2FY24 H1FY25 H1FY24 3,825 Gross Written Premium (₹ in Crore) 939 1,114 910 2,053 1,818 8,673 AUM (₹ in Crore) 9,078 9,030 8,140 9,078 8,140 169 PAT (₹ in Crore) 61 65 50 126 145 61 Other Comprehensive Income (Net of Taxes) 70 12 (10) 82 23 230 Total Com
Slide 36: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT FY24 Particulars Q2FY25 Q1FY25 Q2FY24 H1FY25 H1FY24 70,883 AUM (₹ in Crores) 76,845 80,565 61,884 76,845 61,884 61,241 Equity (₹ in Crores) 65,213 68,722 52,564 65,213 52,564 9,642 Debt (₹ in Crores) 11,632 11,843 9,320 11,632 9,320 112 PAT (₹ in Crores) 39 29 24 68 49 431
Slide 37: More about Sundaram Finance
05 More about Sundaram Finance 37
Slide 38: Shareholding Pattern
SHAREHOLDING PATTERN 30-Sep-23 30-Sep-24 Top institutional shareholders As of 30th September 2024 Name of Shareholder Share % Nalanda India Equity Fund Limited 3.62 Bright Star Investments Private Limited 2.37 31.8% 32.8% 38.5% 37.2% Axis Mutual Fund 1.85 SBI Mutual Fund 1.35 United India Insurance
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
Sep-19 Dec-19 Mar-20 Jun-20 SHARE PRICE MOVEMENT Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 SFL Closing Share Price Mar-22 Jun-22 Sep-22 Indexed share price and Nifty from September 2019 Dec-22 S & P CNX Nifty Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 224.95 322.99 40
Slide 41: Subsidiaries & Joint Ventures
SUBSIDIARIES & JOINT VENTURES Subsidiaries Joint Venture • Sundaram Home Finance Limited • Royal Sundaram General Insurance Co. Limited • Sundaram Asset Management Company Limited • Sundaram Asset Management Singapore Pte. Limited • Sundaram Trustee Company Limited • Sundaram Alternate Assets Limite
Slide 42: Board of Directors
BOARD OF DIRECTORS 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 in auto Insurance
Slide 43: Board of Directors
BOARD OF DIRECTORS Dr. Kshama Fernandes Sri R. Venkatraman Ms Anuradha Rao Independent Director Independent Director Independent Director Has nearly 3 decades of experience spanning across Has close to 4 decades of experience in consulting and Has nearly 4 decades of experience in Banking and manage
Slide 44: 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 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