Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — H1 FY2024 Earnings Presentation
45 slides from Sundaram Finance's earnings presentation, Nov 6, 2023
Slide 1: Performance Highlights H1FY24
PERFORMANCE HIGHLIGHTS H1FY24
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 Staffs * Customer count 40,106 693 7,780 5,54,620 8,140 161 2,923 33,25,031 Joint Venture with Ageas Insurance International NV 12,332 132 1,363 59,148 100% subsidiary 61,883 85 522 12,89,560 100% subsidiary Group 1,22,461 1,071 12,588 52,28,359 * Includes off roll employee
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: 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 30th September 2023 AUM Gross Stage 3 Cost-to-income ROA ROE ₹40,106 Crores 1.86% 35.27% 2.95% 16.2%* 25.4% up 2.54% 35.68% 2.94% 14.9% from Sep 22 in Sep 22 in H1FY23 in H1FY23 in H1FY23 *Core ROE (excluding investments in subsidiaries) at 16.2% vs.
Slide 15: Highlights – Growth of 34% in Core Business
HIGHLIGHTS – GROWTH OF 34% IN CORE BUSINESS Economic activity remained robust in H1FY24 across all regions. Automotive sector growth was strong in Q2 FY24 with commercial vehicles growing 20-25% across segments and passenger cars logging double digit growth. Tractor sales remained muted. Growth in d
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. Collections performance has rever
Slide 17: Highlights – Profitability Improved Consistently
HIGHLIGHTS – PROFITABILITY IMPROVED CONSISTENTLY Profits after tax grew 22% over H1FY23 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
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore FY23 Particulars Q2FY23 Q2FY24 Q1FY24 H1FY23 H1FY24 3,984 Revenue From Operations* 1,034 1,353 1,169 1,957 2,522 64 Other Income 4 3 7 11 10 4,048 Total Revenue 1,038 1,356 1,176 1,968 2,532 1,777 Finance cost 426 612 544 830 1,156 717 Operating expenses 186 217 20
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore 31-Mar-23 Particulars 30-Sep-22 30-Sep-23 Equity and Liabilities 33,255 Financial Liabilities 28,759 38,405 67 Non-Financial Liabilities 59 60 7,737 Equity 7,315 8,219 41,059 Total – Equity and Liabilities 36,133 46,684 Assets 39,938 Financial Assets 35,162 45,586 1,121 Non-
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 20,966 40,106 17,170 34,552 15,175 30,882 31,980 28,984 29,936 29,532 13,275 13,430 11,742 10,054 6941 5139 6489 4915 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Growth 9.3% -11.6% -22.6% 13.1% 5
Slide 23: Disbursements
DISBURSEMENTS Sep-22 Sep-23 6.0% 1.7% 2.0% MHCV 8.6% Retail CV 7.0% 7.1% 26.1% 31.0% Cars 10.6% 11.1% ₹ 10,054 Cr. ₹ 13,430 Cr. Construction Equipment Asset wise Tractors 24.7% 21.5% 19.0% 23.6% Commercial Lending Used Assets – 22.8% Used Assets – 21.7% Others 4.7% 4.4% South 12.5% 11.5% North ₹ 10,
Slide 24: AUM
AUM Sep-22 Sep-23 6.0% 5.0% MHCV 3.8% 6.0% Retail CV 7.9% 24.5% 28.6% 7.6% Cars 10.8% 10.6% ₹ 31,980 Cr. ₹ 40,106 Cr. Construction Equipment Asset wise Tractors 21.9% 17.8% 25.1% 24.4% Commercial Lending Used Assets – 17.8% Used Assets – 17.8% Others 4.4% 4.4% South 13.1% 12.2% North ₹ 31,980 Cr. ₹
Slide 25: Branch Network
BRANCH NETWORK Sep-22 Sep-23 43 41 74 81 327 352 196 219 No. of Branches: 640 No. of Staffs: 6,676 No. of Branches: 693 No. of Staffs: 7,780 South North West East 25
Slide 26: Portfolio Quality
PORTFOLIO QUALITY Gross Stage 3% Net Stage 3% 2.47% 2.54% 2.19% 1.84% 1.86% 1.66% 1.65% 1.33% 1.37% 1.01% 1.07% 1.08% 0.83% 0.86% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 26
Slide 27: Funding Mix
FUNDING MIX ₹ 26,673 Cr. ₹ 29,007 Cr. ₹ 29,251 Cr. ₹ 28,297 Cr. ₹ 32,915 Cr. ₹ 28,506 Cr. ₹ 37,976 Cr. 0.0% 3.4% 7.7% 2.5% 6.8% 6.1% 15.1% 10.9% 11.6% 14.3% 13.2% 14.8% 15.4% 11.0% 14.2% 20.4% 11.3% 11.4% 8.6% 16.7% 8.0% 19.9% 19.9% 23.3% 25.4% 16.7% 25.9% 34.1% 52.0% 54.0% 45.7% 41.1% 46.6% 39.2% 3
Slide 28: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,126 1,088 2.9 2.9 2.8 903 809 2.5 522 724 2.3 53 648 529 2.0 # 2.0 # 366 303 671 604 226 282 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 EPS Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 101.4 65.2 72.8 81.3 98.0 47.6 58.3 (₹) Q2 E
Slide 29: Net Worth
NET WORTH ₹ in Crore Net worth 8,219 7,737 7,315 6,893 6,179 5,547 5,044 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Book Value 454.0 499.3 556.2 620.4 696.4 658.4 739.8 (₹) 29
Slide 30: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 5.0 4.9 24.4% 24.3% 4.6 4.6 22.8% 22.1% 4.2 19.4% 19.9% 4.0 18.4% 3.9 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 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 10,574 9,910 9,240 8,795 7,730 1,318 6,677 1,161 1,165 1,173 6,259 792 741 552 366 306 246 375 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 EPS 105.4 71.9 105.7 106.5 119.6 50.1 67.2 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 (₹) B
Slide 33: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 30-Sep-22 30-Sep-23 H1FY23 H1FY24 Sundaram Finance Ltd. 7,315 8,219 529 648 Subsidiaries: Sundaram Home Finance Ltd. 1,686 1,820 98 117 Sundaram Finance Holdings Ltd. (Consolidated) 778 935 18 38 Sundaram Asset Management
Slide 34: Sundaram Home Finance
SUNDARAM HOME FINANCE FY23 Particulars Q2 FY24 Q1 FY24 Q2 FY23 H1 FY24 H1 FY23 3,901 Disbursements (₹ in Crore) 1,213 1,094 940 2,307 1,736 55.6% Housing 46.8% 51.3% 57.5% 48.9% 58.9% 44.4% Non-Housing 53.2% 48.7% 42.5% 51.1% 41.1% 11,181 AUM (₹ in Crore) 12,332 11,699 10,177 12,332 10,177 64.9% Hou
Slide 35: Royal Sundaram
ROYAL SUNDARAM FY23 Particulars Q2 FY24 Q1 FY24 Q2 FY23 H1 FY24 H1 FY23 3,517 Gross Written Premium (₹ in Crore) 910 908 847 1,818 1,645 7,673 AUM (₹ in Crore) 8,140 8,196 7,444 8,140 7,444 44 PAT (₹ in Crore) 50 95 34 145 1 (121) Other Comprehensive Income (Net of Taxes) (10) 32 7 23 (132) (77) Tot
Slide 36: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT FY23 Particulars Q2 FY24 Q1 FY24 Q2 FY23 H1 FY24 H1 FY23 54,804 AUM (₹ in Crores) 61,883 59,862 55,167 61,883 55,167 45,742 Equity (₹ in Crores) 52,532 50,238 47,855 52,532 47,855 9,062 Debt (₹ in Crores) 9,351 9,624 7,313 9,351 7,313 73 PAT (₹ in Crores) 24 24 16 48 34 404
Slide 37: More about Sundaram Finance
05 More about Sundaram Finance 37
Slide 38: Shareholding Pattern
SHAREHOLDING PATTERN 30-Sep-22 30-Sep-23 Top institutional shareholders As of 30th September 2023 Name of Shareholder Share % Axis Mutual Fund 4.77 32.9% 31.8% Nalanda India Equity Fund Limited 3.78 38.5% 38.5% Kotak Mutual Fund 2.57 Bright Star Investments Pvt Ltd 2.37 HDFC Life Insurance Company 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
Sep-18 Dec-18 Mar-19 Jun-19 SHARE PRICE MOVEMENT Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 SFL Closing Share Price Mar-21 Jun-21 Sep-21 Indexed share price and Nifty from September 2018 Dec-21 S & P CNX Nifty Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 179.67 202.84 40
Slide 41: Subsidiaries, Joint Ventures & Associates
SUBSIDIARIES, JOINT VENTURES & ASSOCIATES Subsidiaries Joint Venture • Sundaram Home Finance Limited • Royal Sundaram General Insurance Company Limited • Sundaram Finance Holdings Limited • Sundaram Business Services Limited • Sundaram Asset Management Company Limited Associates of a Subsidiary Comp
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, Has over 4 decades of experience in Banking and Has more than 2 decades of rich experience in auto Finance, Insurance and Aut
Slide 43: Board of Directors
BOARD OF DIRECTORS Sri S. Mahalingam Sri Raghuttama Rao Raghavendra Sri L. Ganesh Ms Bhavani Balasubramanian Independent Director Independent Director Independent Director Independent Director Has over 3 decades of work experience Has over 4 decades of Industrial Has over 4 decades of audit experien
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