Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — Q1 FY2025 Earnings Presentation
45 slides from Sundaram Finance's earnings presentation, Aug 5, 2024
Slide 1: Performance Highlights Q1FY25
PERFORMANCE HIGHLIGHTS Q1FY25
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 45,671 713 7,381 5,82,231 9,030 158 2,551 31,06,665 Joint Venture with Ageas Insurance International NV 14,533 143 1,587 62,476 100% subsidiary 80,565 85 563 12,92,907 100% subsidiary Group 1,49,799 1,099 12,082 50,44,279 * 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: 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 30th June 2024 AUM Gross Stage 3 Cost-to-income ROA ROE ₹45,671 Crores 1.56% 32.90% 2.38% 13.6%* 22.6% up 1.90% 35.18% 2.68% 14.3% from Jun 23 in Jun 23 in Q1FY24 in Q1FY24 in Q1FY24 *Core ROE (excluding investments in subsidiaries) at 17.0% vs. 16.2
Slide 15: Highlights – Growth of 7% in Core Business
HIGHLIGHTS – GROWTH OF 7% IN CORE BUSINESS Economic activity in the automotive sector was muted in the quarter driven by the activities associated with the 7-phase general elections and an unusually hot summer. Nearly all asset classes witnessed a decline in sales YOY with only ICVs recording growth
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 from Operations grew 22% in Q1FY25 compared to last year due to growth of AUM, improvements in spread, tight control on costs, meticulous management of our cost of borrowing consistent with our “AAA” rating. We are ensuring prudent focus on as
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore FY24 Particulars Q1FY24 Q1FY25 Q4FY24 5,041 Revenue From Operations* 1,118 1,425 1,379 346 Dividend Income 51 18 165 14 Other Income 7 8 (1) 5,401 Total Revenue 1,176 1,451 1,543 2,576 Finance cost 545 757 724 854 Operating expenses 203 219 215 274 Impairment 63 73
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore 31-Mar-24 Particulars 30-Jun-23 30-Jun-24 Equity and Liabilities 41,431 Financial Liabilities 34,752 44,174 85 Non-Financial Liabilities 64 141 9,472 Equity 8,019 10,015 50,988 Total – Equity and Liabilities 42,835 54,330 Assets 49,942 Financial Assets 41,789 53,295 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 45,671 43,987 26,163 37,255 20,966 34,552 29,936 30,882 29,532 15,175 13,275 11,742 6,489 6,908 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Growth -11.6% -22.6% 13.1% 57.9% 24.8% 32.0% 6.5% Growt
Slide 23: Disbursements
DISBURSEMENTS Jun-23 Jun-24 1.8% 3.4% MHCV 6.0% Retail CV 9.6% 7.8% 24.2% 29.3% 7.2% Cars 11.6% ₹ 6,489 Cr. 11.3% ₹ 6,908 Cr. Construction Equipment Asset wise Tractors 22.6% 22.6% 20.9% 21.7% Commercial Lending Used Assets – 21.1% Used Assets – 23.2% Others 5.0% 4.3% South 11.8% 13.5% North ₹ 6,489
Slide 24: AUM
AUM Jun-23 Jun-24 4.8% 5.0% MHCV 5.1% 6.6% Retail CV 7.8% 25.1% 24.6% 7.3% Cars 10.8% 10.7% ₹ 45,671 Cr. ₹ 37,255 Cr. Construction Equipment Asset wise Tractors 21.9% 21.8% 24.5% 24.0% Commercial Lending Used Assets – 18.2% Used Assets – 18.6% Others 4.5% 4.4% South 13.2% 13.4% North ₹ 37,255 Cr. 54
Slide 25: Branch Network
BRANCH NETWORK Jun-23 Jun-24 10 42 13 41 81 79 340 357 221 220 No. of Branches: 691 No. of Staffs: 7,655 No. of Branches: 713 No. of Staffs: 7,381 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% 1.90% 1.66% 1.65% 1.56% 1.26% 1.01% 1.07% 1.00% 0.86% 0.84% 0.63% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-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. ₹ 34,350 Cr. ₹ 43,707 Cr. 7.7% 2.5% 6.8% 4.7% 5.9% 15.1% 10.1% 14.3% 14.2% 13.2% 14.8% 13.7% 11.0% 15.0% 11.3% 11.5% 11.4% 12.1% 16.7% 9.5% 19.9% 19.9% 16.7% 25.9% 35.8% 30.4% 36.1% 52.0% 54.0% 45.7% 41.1% 33.8% 35.0% 3
Slide 28: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,454 3.2 120 2.8 2.7 1,088 2.5 2.4 903 2.3 # 809 724 2.0 # 53 1,300 671 281 308 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 EPS 65.2 72.8 81.3 98.0 130.9 25.3 27.7 (₹) # adjusted for exc
Slide 29: Net Worth
NET WORTH ₹ in Crore Net worth 10,015 9,472 7,737 8,019 6,893 6,179 5,547 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Book Value (₹) 499.3 556.2 620.4 696.4 852.5 721.7 901.4 29
Slide 30: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 4.9 4.6 24.4% 4.3 4.4 4.3 22.8% 4.2 22.1% 21.4% 4.0 20.5% 19.3% 18.4% Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-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 11,758 1,436 11,078 1,328 10,343 9,920 1,165 1,173 8,795 7,730 792 6,677 435 375 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-23 Jun-24 EPS Book 71.9 105.7 106.5 120.5 130.3 34.0 39.5 606.1 701.6 79
Slide 33: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 30-Jun-23 30-Jun-24 Q1FY24 Q1FY25 Sundaram Finance Ltd. 8,019 10,015 281 308 Subsidiaries: Sundaram Home Finance Ltd. 1,863 1,946 57 66 Sundaram Finance Holdings Ltd. (Consolidated)* 884 - 17 - Sundaram Asset Management C
Slide 34: Sundaram Home Finance
SUNDARAM HOME FINANCE FY24 Particulars Q1 FY25 Q4 FY24 Q1 FY24 5,029 Disbursements (₹ in Crore) 1,353 1,469 1,094 50.9% Housing 54.2% 52.1% 51.3% 49.1% Non-Housing 45.8% 47.9% 48.7% 13,812 AUM (₹ in Crore) 14,533 13,812 11,699 61.0% Housing 60.5% 61.0% 63.9% 39.0% Non-Housing 39.5% 39.0% 36.1% 235.8
Slide 35: Royal Sundaram
ROYAL SUNDARAM FY24 Particulars Q1 FY25 Q4 FY24 Q1 FY24 3,825 Gross Written Premium (₹ in Crore) 1,114 1,033 908 8,673 AUM (₹ in Crore) 9,030 8,673 8,196 169 PAT (₹ in Crore) 65 (9) 95 61 Other Comprehensive Income (Net of Taxes) 12 35 33 230 Total Comprehensive Income 77 26 128 1,642 Net worth (₹ i
Slide 36: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT FY24 Particulars Q1 FY25 Q4 FY24 Q1 FY24 70,883 AUM (₹ in Crores) 80,565 70,883 59,862 61,241 Equity (₹ in Crores) 68,722 61,241 50,238 9,642 Debt (₹ in Crores) 11,843 9,642 9,624 112 PAT (₹ in Crores) 29 38 24 431 Net worth (₹ in Crores) 465 431 432 555 Staffs 563 555 529
Slide 37: More about Sundaram Finance
05 More about Sundaram Finance 37
Slide 38: Shareholding Pattern
SHAREHOLDING PATTERN 30-Jun-23 30-Jun-24 Top institutional shareholders As of 30th June 2024 Name of Shareholder Share % Nalanda India Equity Fund Limited 3.62 32.4% Axis Mutual Fund 2.66 32.1% 38.5% 37.9% Bright Star Investments Private Limited 2.37 SBI Mutual Fund 1.35 United India Insurance Compa
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
Jun-19 Sep-19 Dec-19 Mar-20 SHARE PRICE MOVEMENT Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 SFL Closing Share Price Dec-21 Mar-22 Indexed share price and Nifty from June 2019 Jun-22 Sep-22 S & P CNX Nifty Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 203.67 280.62 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 manag
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