Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — FY2023 Earnings Presentation
45 slides from Sundaram Finance's earnings presentation, May 2023
Slide 1: Performance Highlights FY23
PERFORMANCE HIGHLIGHTS 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 Staffs * Customer count 34,552 671 7,371 5,32,533 7,673 164 2,910 32,53,364 Joint Venture with Ageas Insurance International NV 11,181 117 1,127 41,431 100% subsidiary 54,804 85 506 13,19,288 100% subsidiary Group 1,08,210 1,037 11,914 51,46,616 * Includes off roll employee
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 • 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: Receivables Under Management
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Receivables Under Management 39,950 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 3,093 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Ma
Slide 10: Sundaram Finance – Performance Over Last Twenty Years: PAT
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore PAT 1,126 1,088 903 522 809 724 53 563 477 495 355 443 454 410 26 41 295 227 39 563 604 213 495 171 151 26 428 436 100 77 56 76 89 201 256 82 136 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-1
Slide 11: Sundaram Finance – Performance Over Last Twenty Years: Market Capitalization
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Market Capitalization 28,560 25,548 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 1,602 917 533 782 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
Slide 12: Sundaram Finance – Performance Over Last Twenty Years: Core ROE
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 16.3 14.9 15.5 15.3 14.4 13.0 12.6 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 March 2023 AUM Gross Stage 3 Cost-to-income ROA ROE ₹34,552 Crores 1.66% 34.36% 2.8% 14.9%* 17.0% up 2.19% 32.36% 2.5% 13.8% from Mar 22 in Mar 22 in FY22 in FY22 in FY22 150% final dividend (₹ 15 per share) declared. Total dividend for FY23 270
Slide 15: Highlights – Growth of 58% in Core Business
HIGHLIGHTS – GROWTH OF 58% IN CORE BUSINESS Economic activity continued to improve across all segments during 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 as
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 20% over 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 focus o
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Revenue From Operations* 1,034.93 991.70 927.40 3,984.46 3,827.64 Other Income 50.96 2.28 8.65 63.74 20.43 Total Revenue 1,085.89 993.98 936.05 4,048.20 3,848.07 Finance cost 490.21 457.26 410.89 1,777.09 1,700.11 Opera
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore Particulars 31-Mar-23 31-Dec-22 31-Mar-22 Equity and Liabilities Financial Liabilities 33,254.03 30,734.62 28,323.23 Non-Financial Liabilities 67.27 63.68 71.20 Equity 7,737.40 7,557.94 6,893.09 Total – Equity and Liabilities 41,058.70 38,356.24 35,287.52 Assets Financial As
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 34,552 20,966 0.2% 29,936 30,882 29,532 17,170 5,259 28,984 2.7% 4.6% 1.2% 15,175 4.8% 13,275 11,742 5,653 3,751 99.8% 97.3% 98.8% 95.2% 95.4% 3,843 5,139 3,621 4,915 2,060 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Growth
Slide 23: Disbursements
DISBURSEMENTS Mar-22 Mar-23 3.8% 2.4% 6.9% 1.6% MHCV Retail CV 8.9% 27.6% 7.7% 31.1% Cars 11.5% 10.8% ₹ 13,275 Cr. ₹20,966 Cr. Construction Equipment Asset wise Tractors 18.8% 24.2% 27.0% 17.7% Commercial Lending Used Assets – 22.3% Used Assets – 22.4% Others 4.7% 4.4% South 14.1% 11.7% North ₹ 13,2
Slide 24: AUM
AUM Mar-22 Mar-23 7.0% 5.4% MHCV 3.1% 4.1% Retail CV 8.1% 28.5% 8.0% 29.3% Cars 11.1% 10.7% ₹ 29,532 Cr. ₹34,552 Cr. Construction Equipment Asset wise Tractors 17.1% 17.5% 25.1% 25.0% Commercial Lending Used Assets – 17.4% Used Assets – 18.1% Others 4.4% 4.4% South 13.0% 12.6% North ₹ 29,532 Cr. ₹ 3
Slide 25: Portfolio Quality
PORTFOLIO QUALITY Gross Stage 3% Net Stage 3% 2.47% 2.19% 1.84% 1.66% 1.65% 1.33% 1.01% 1.07% 0.83% 0.86% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 25
Slide 26: Funding Mix
FUNDING MIX ₹ 26,673 Cr. ₹ 29,007 Cr. ₹ 29,251 Cr. ₹ 28,297 Cr. ₹ 32,915 Cr. 0.0% 3.4% 7.7% 2.5% 6.8% 11.6% 14.3% 15.1% 13.2% 14.8% 11.3% 11.0% 20.4% 11.4% 16.7% 19.9% 19.9% 25.4% 16.7% 25.9% 52.0% 54.0% 45.7% 41.1% 39.2% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Debentures Bank Borrowings* Securitisation
Slide 27: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,126 1,088 2.8 903 809 316 2.5 522 724 299 2.3 53 243 2.0 # 2.0 # 202 671 303 211 604 191 226 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 EPS (₹) 101.4 65.2 72.8 81.3 98.0 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Exceptional Item Q1 Q2 Q3 Q4 # adjusted fo
Slide 28: Net Worth
NET WORTH ₹ in Crore Net worth 7,737 6,893 6,179 5,547 5,044 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Book Value (₹) 454.0 499.3 556.2 620.4 696.4 28
Slide 29: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 5.0 4.9 24.4% 4.6 22.8% 22.1% 4.2 19.4% 4.0 18.4% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 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 9,910 8,795 7,730 6,677 1,318 6,259 1,161 1,165 1,173 792 340 433 289 333 259 306 285 246 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 EPS (₹) 105.4 71.9 105.7 106.5 119.6 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Book 568.3 606.1 701.6 798.2 899.3 Q1 Q2 Q3
Slide 32: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 31-Mar-22 31-Mar-23 FY22 FY23 Sundaram Finance Ltd. 6,893.09 7,737.40 903.41 1,088.31 Subsidiaries: Sundaram Home Finance Ltd. 1,654.98 1,805.03 167.70 215.41 Sundaram Finance Holdings Ltd. (Consolidated) 705.24 838.67 37
Slide 33: Sundaram Home Finance
SUNDARAM HOME FINANCE Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Disbursements (₹ in Crore) 1,204 961 794 3,901 2,311 Housing 54.6% 54.8% 56.1% 56.9% 66.3% Non-Housing 45.4% 45.2% 43.9% 43.1% 33.7% AUM (₹ in Crore) 11,181 10,564 9,495 11,181 9,495 Housing 64.9% 69.2% 69.6% 64.9% 69.6% Non-Housing
Slide 34: Royal Sundaram
ROYAL SUNDARAM Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Gross Written Premium (₹ in Crore) 938 934 819 3,517 2,966 AUM (₹ in Crore) 7,673 7,744 7,282 7,673 7,282 PAT (₹ in Crore) 38 5 (17) 44 172 Other Comprehensive Income (Net of Taxes) 1 10 (25) (121) (54) Total Comprehensive Income 39 15 (42
Slide 35: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 AUM (₹ in Crores) 54,804 56,787 54,901 54,804 54,901 Equity (₹ in Crores) 45,742 48,023 46,069 45,742 46,069 Debt (₹ in Crores) 9,062 8,764 8,832 9,062 8,832 PAT (₹ in Crores) 19 20 (1) 73 72 Net worth (₹ in Crores) 404 385 364
Slide 36: More about Sundaram Finance
05 More about Sundaram Finance 36
Slide 37: Shareholding Pattern
SHAREHOLDING PATTERN 31-Mar-22 31-Mar-23 Top institutional shareholders As of 31st March 2023 Name of Shareholder Share % Axis Mutual Fund 5.51 32.1% Nalanda India Equity Fund Limited 3.78 33.0% 38.5% 38.5% ICICI Prudential Mutual Fund 2.83 Bright Star Investments Pvt Ltd. 2.37 HDFC Life Insurance C
Slide 38: Branch Network
BRANCH NETWORK 31-Mar-22 31-Mar-23 40 40 72 76 324 344 182 211 No. of Branches: 618 No. of Staffs: 6,567 No. of Branches: 671 No. of Staffs: 7,371 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
Mar-18 Jun-18 Sep-18 Dec-18 SHARE PRICE MOVEMENT Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 SFL Closing Share Price Sep-20 Dec-20 Mar-21 Indexed share price and Nifty from March 2018 Jun-21 S & P CNX Nifty Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 137.10 171.64 40
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 Ms Bhavani Balasubramanian Sri T T Srinivasaraghavan Sri Srivats Ram Independent Director Independent Director Non-executive Director Non-executive Director Has 3 decades of experience in General Has over 4 decades of audit experience Has over 4 decades o
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