Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — Q1 FY2022 Earnings Presentation
45 slides from Sundaram Finance's earnings presentation, Aug 10, 2021
Slide 1: Performance Highlights Q1FY22
PERFORMANCE HIGHLIGHTS Q1FY22
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 29,823 597 4,191 530,847 6,971 158 2,320 27,13,325 Joint Venture with Ageas Insurance International NV 9,038 107 760 39,894 100% subsidiary 42,621 85 359 10,20,766 100% subsidiary Group 88,453 947 7,630 43,04,832 6
Slide 7: Strategic Sources of Distinctiveness
STRATEGIC SOURCES OF DISTINCTIVENESS 67-year heritage of trust Pioneer of hire-purchase Diversified financial services Lending business focused on the and prudence finance in India group across lending, general underserved but aspiring Indian insurance, home finance and entrepreneur (road transport
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 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 2,259 2,670 3,093 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-
Slide 10: Sundaram Finance – Performance Over Last Twenty Years: PAT
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore PAT 1126 522 809 724 53 563 477 495 443 454 410 355 295 671 227 39 604 213 171 151 26 100 77 56 76 89 201 256 40 46 82 136 Mar-02 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
Slide 11: Sundaram Finance – Performance Over Last Twenty Years: Market Cap
SUNDARAM FINANCE – PERFORMANCE OVER LAST TWENTY YEARS ₹ in Crore Market Capitalization 28,560 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 1,602 917 240 256 533 782 Mar-02 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-1
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 13.7 13.7 12.6 11.9 11.0 9.9 8.6 Mar-02 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
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 June 2021 AUM Gross Stage 3 Cost-to-income ROA ROE ₹29,823 Crores 4.25% 31.5% 2.2% 12.2%* 1% growth 2.44% 31.6% 1.9% 11.7% over Jun 20 in Jun 20 in Q1FY21 in Q1FY21 in Q1FY21 *Core ROE (excluding investments in subsidiaries) at 16.7% vs. 16.4% 1
Slide 15: Highlights – Growth
HIGHLIGHTS – GROWTH Growth in disbursements was strong as economic activity continued on account of staggered lockdowns in Q1 FY22 compared to a national lockdown in Q1 FY21 Disbursements for Q1FY22 recorded a growth of 122% to Pursuant to RBI’s notification on Resolution Framework 2.0 related of ₹2
Slide 16: Highlights – Quality
HIGHLIGHTS – QUALITY Our asset quality remained best-in-class in the industry on account of our traditionally tight credit filters, strong customer relationships and our thrust enabling collections through digital payment modes. Gross stage III assets as on 30th June 2021 stood at 4.25% with Gross N
Slide 17: Highlights – Profitability
HIGHLIGHTS – PROFITABILITY Profit growth was robust, enabled by growth in disbursements, our asset quality and tight control of costs Cost to income closed at 31.5% in Q1FY22 as against 31.6% in Return on assets (ROA) for Q1FY22 closed at 2.2% as against 1.9% for Q1FY21. Q1FY21. For FY21, ROA was at
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore FY21 Particulars Q1FY21 Q1FY22 3,917.00 Revenue From Operations* 940.64 941.35 60.46 Other Income 3.26 5.49 3,977.46 Total Revenue 943.90 946.84 2,030.73 Finance cost 523.46 458.53 574.37 Operating expenses 140.73 149.97 316.06 Impairment 60.71 85.20 2,921.16 Total
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore 31-Mar-21 Particulars 30-Jun-20 30-Jun-21 Equity and Liabilities 28,724.24 Financial Liabilities 28,781.88 27,403.81 48.77 Non-Financial Liabilities 42.57 43.99 6,179.45 Equity 5,742.63 6,372.46 34,952.46 Total – Equity and Liabilities 34,567.08 33,820.26 Assets 34,182.51 Fi
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-11 55.55 1,530 7,592 12,354 295.23 140 2,722 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
Slide 22: Disbursements and AUM
DISBURSEMENTS AND AUM ₹ in Crore Disbursements AUM 17,170 15,712 15,175 30,882 28,984 29,936 29,580 29,823 2.7% 4.6% 2.4% 13,218 4.8% 4.4% 11,742 24,964 10.6% 20,735 24.8% 97.3% 95.4% 95.6% 97.6% 95.2% 89.4% 2,060 75.2% 929 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 Mar-17 Mar-18 Mar-19 Mar-20
Slide 23: Disbursements
DISBURSEMENTS Q1FY21 Q1FY22 2.5% 3.0% CVs 11.6% 24.0% 26.0% Cars 12.7% 43.0% ₹929 Cr. ₹2,060 Cr. Construction Equipment Asset wise Tractors 22.4% 25.1% 29.7% Others 8.8% 5.2% South 8.6% 14.1% North 47.4% ₹929 Cr. 52.2% ₹2,060 Cr. Region wise West 30.4% 33.3% East 23
Slide 24: AUM
AUM Jun-20 Jun-21 5.6% 9.2% 6.4% 7.7% CVs 10.8% Cars 11.3% 46.9% ₹29,580 Cr. ₹29,823 Cr. 52.7% Construction Equipment Asset wise 24.5% 24.9% Tractors Others Used Vehicles – 16.3% Used Vehicles – 14.8% 3.9% 4.2% South 12.8% 12.3% North 20.0% ₹29,580 Cr. 22.2% ₹29,823 Cr. Region wise 61.3% West 63.3%
Slide 25: Portfolio Quality
PORTFOLIO QUALITY Stage III % Stage III % (Net of ECL) 4.25% 3.12% 2.47% 2.44% 1.65% 1.84% 1.48% 1.54% 1.27% 1.33% 1.01% 0.83% 0.66% 0.55% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 Stage III % - is as per IGAAP as on 31st Mar 17 25
Slide 26: Funding Mix
FUNDING MIX ₹ 19,373 Cr. ₹ 24,085 Cr. ₹ 26,673 Cr. ₹ 29,007 Cr. ₹ 29,251 Cr. ₹ 29,887 Cr. ₹ 27,836 Cr. 3.4% 2.5% 4.9% 8.3% 7.7% 7.4% 18.3% 11.6% 14.3% 10.9% 13.2% 13.0% 15.3% 12.4% 11.3% 20.4% 9.8% 16.7% 15.1% 24.2% 19.9% 18.4% 28.2% 14.9% 25.4% 16.7% 19.9% 7.0% 52.0% 49.6% 51.6% 45.7% 36.7% 39.2% 3
Slide 27: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,126 522 809 2.3 724 2.2 2.2 2.2 53 2.0 # 2.0 # 563 1.9 495 604 671 166 192 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 EPS (₹) 44.6 50.7 101.4 65.2 72.8 14.9 17.2 Exceptional Item # adj
Slide 28: Net Worth
NET WORTH Net worth 6,372 6,179 5,743 5,547 5,044 4,134 3,746 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 Book Value 337.1 372.1 454.0 499.3 556.2 516.9 573.6 (₹) 28
Slide 29: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 23.5% 5.1 22.1% 5.0 4.9 4.9 4.6 19.4% 18.0% 18.4% 17.9% 17.7% 4.2 3.7 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 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 1,161 1,165 8,082 7,730 7,021 6,677 792 6,259 730 5,649 683 4,809 269 285 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jun-20 Jun-21 Book EPS (₹) 61.5 66.3 105.4 71.9 105.7 24.4 25.9 Value 432.9 513.0 5
Slide 32: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 30-Jun-20 30-Jun-21 Q1FY21 Q1FY22 Sundaram Finance Ltd. 5,742.63 6,372.46 165.68 191.58 Subsidiaries: Sundaram Finance Holdings Ltd. (Consolidated) 395.87 647.07 (2.14) 6.82 Sundaram Asset Management Company Ltd. (Consoli
Slide 33: Sundaram Home Finance
SUNDARAM HOME FINANCE 31-Mar-21 Particulars 30-Jun-20 30-Jun-21 1,254 Disbursements (₹ in Crore) 100 249 76.1% Housing 93.0% 84.7% 23.9% Non-Housing 7.0% 15.3% 9,173 AUM (₹ in Crore) 9,653 9,038 70.0% Housing 69.5% 70.4% 30.0% Non-Housing 30.5% 29.6% 192 PAT (₹ in Crore)* 34 40 18.93 EPS (₹) 13.41 1
Slide 34: Royal Sundaram
ROYAL SUNDARAM 31-Mar-21 Particulars 30-Jun-20 30-Jun-21 2,883 Gross Written Premium (₹ in Crores) 610 665 313 PAT (₹ in Crores) 157 83 26 Other Comprehensive Income (Net of Taxes) 83 (8) 339 Total Comprehensive Income 240 75 1,429 Net worth (₹ in Crores) 1,330 1,503 110% Combined Operating Ratio 10
Slide 35: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT 31-Mar-21 Particulars 30-Jun-20 30-Jun-21 41,196 AUM (₹ in Crores) 33,531 42,621 31,709 Equity (₹ in Crores) 24,315 34,214 9,487 Debt (₹ in Crores) 9,216 8,407 55 PAT (₹ in Crores) 9 26 254 Net worth (₹ in Crores) 205 258 359 Employees 386 359 10,24,674 Retail Investors 10,
Slide 36: More about Sundaram Finance
05 More about Sundaram Finance 36
Slide 37: Shareholding Pattern
SHAREHOLDING PATTERN 30-Jun-20 30-Jun-21 Top institutional shareholders As of 30th June 2021 Name of Shareholder Share % Axis Mutual Fund Trustee Ltd. 4.31 Nalanda India Equity Fund Ltd. 3.78 37.6% 35.9% 35.6% 35.9% IMPAL 2.61 Bright Star Investments Pvt. Ltd. 2.37 HDFC Life Insurance Company Ltd. 1
Slide 38: Branch Network
BRANCH NETWORK 30-Jun-20 30-Jun-21 41 40 64 64 337 323 168 170 No. of Branches: 610 No. of Employees: 4,208 No. of Branches: 597 No. of Employees: 4,191 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 171.37 165.64 Mar-17 Dec-17 Mar-18 Dec-18 Mar-19 Mar-21 Dec-19 Mar-20 Dec-20 Jun-17 Sep-17 Jun-18 Sep-18 Jun-19 Sep-19 Jun-20 Sep-20 Jun-21 SFL Closing Share Price S & P CNX Nifty Share price movement after 1st Feb 2018 is post demer
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 as on 28.05.2021
BOARD OF DIRECTORS AS ON 28.05.2021 Sri S Viji Sri S Ram Sri Raghuttama Rao Raghavendra Chairman Non-executive Director Independent Director Has over 5 decades of experience in Banking, Has over 5 decades of work experience in Vehicle Has over 3 decades of work experience spanning Finance, Insurance
Slide 43: Board of Directors as on 28.05.2021
BOARD OF DIRECTORS AS ON 28.05.2021 Sri L Ganesh Ms Shobhana Ramachandhran Sri T T Srinivasaraghavan Independent Director Independent Director Non-executive Director Has over 44 years of Industrial experience in and 3 decades of experience in General Management Has nearly 4 decades of experience in
Slide 44: Key Managerial Personnel
KEY MANAGERIAL PERSONNEL Sri M. Ramaswamy Sri P. Viswanathan Chief Financial Officer Company Secretary & Compliance Officer He has over 35 years of experience in the Company. He is the Chief He has over 45 years of experience in the Company/Group. He became the Financial Officer of the Company from
Slide 45: Shri M Ramaswamy Shri P Viswanathan
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