Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — 9MFY24 Earnings Presentation
46 slides from Sundaram Finance's earnings presentation, Feb 5, 2024
Slide 1: Performance Highlights 9MFY24
PERFORMANCE HIGHLIGHTS 9MFY24
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 42,172 704 7,677 5,69,957 8,513 161 2,804 31,20,574 Joint Venture with Ageas Insurance International NV 12,973 138 1,461 60,014 100% subsidiary 67,272 85 551 12,92,511 100% subsidiary Group 1,30,930 1,088 12,493 50,43,056 * Includes off roll employees
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: 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: 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: 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: 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 16.3 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 December 2023 AUM Gross Stage 3 Cost-to-income ROA ROE ₹42,172 Crores 1.77% 35.14% 2.79% 15.5%* 25.7% up 2.43% 34.80% 2.78% 14.2% from Dec 22 in Dec 22 in 9MFY23 in 9MFY23 in 9MFY23 140% interim dividend (₹ 14/- per share) declared *Core ROE (ex
Slide 15: Highlights – Growth of 27% in Core Business
HIGHLIGHTS – GROWTH OF 27% IN CORE BUSINESS Economic activity was lesser-than-expected in Q3 during the festival season. Automotive sector growth was muted with several asset classes declining YOY with others recording single digit growth. Commercial vehicles declined 4-6% YOY, tractors 12-13% YOY a
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 after tax grew 23% over 9MFY23 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. We are ensuring prudent f
Slide 18: Profit & Loss Statement
PROFIT & LOSS STATEMENT ₹ in Crore FY23 Particulars Q3FY23 Q3FY24 Q2FY24 9MFY23 9MFY24 3,984 Revenue From Operations* 992 1,321 1,353 2,949 3,843 64 Other Income 2 6 3 13 16 4,048 Total Revenue 994 1,327 1,356 2,962 3,859 1,780 Finance cost 458 694 613 1,289 1,852 714 Operating expenses 180 222 216
Slide 19: Balance Sheet
BALANCE SHEET ₹ in Crore 31-Mar-23 Particulars 31-Dec-22 31-Dec-23 Equity and Liabilities 33,255 Financial Liabilities 30,734 40,805 67 Non-Financial Liabilities 64 65 7,737 Equity 7,558 8,521 41,059 Total – Equity and Liabilities 38,356 49,391 Assets 39,938 Financial Assets 37,315 48,228 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 42,172 19,954 17,170 34,552 15,707 33,558 15,175 6524 29,936 30,882 13,275 28,984 29,532 11,742 5653 6941 5139 6489 4915 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Growth 9.3% -11.6% -22.
Slide 23: Disbursements
DISBURSEMENTS Dec-22 Dec-23 5.5% 2.2% 3.2% MHCV 7.1% Retail CV 7.9% 25.1% 30.1% 7.6% Cars 10.8% ₹ 15,707 Cr. 11.3% ₹ 19,954 Cr. Construction Equipment Asset wise Tractors 21.4% 25.3% 18.2% 24.3% Commercial Lending Used Assets – 23.4% Used Assets – 22.6% Others 4.6% 4.2% South 11.9% 11.8% North ₹ 15,
Slide 24: AUM
AUM Dec-22 Dec-23 5.4% 4.8% MHCV 4.0% 6.1% Retail CV 8.0% 24.3% 28.6% 7.6% Cars 10.8% 10.6% ₹ 33,558 Cr. ₹ 42,172 Cr. Construction Equipment Asset wise Tractors 21.9% 17.7% 25.5% 24.7% Commercial Lending Used Assets – 18.4% Used Assets – 18.4% Others 4.5% 4.3% South 12.8% 12.4% North ₹ 33,558 Cr. 56
Slide 25: Branch Network
BRANCH NETWORK Dec-22 Dec-23 41 41 81 74 362 334 220 203 No. of Branches: 652 No. of Staffs: 6,882 No. of Branches: 704 No. of Staffs: 7,677 South North West East 25
Slide 26: Portfolio Quality
PORTFOLIO QUALITY Gross Stage 3% Net Stage 3% 2.47% 2.43% 2.19% 1.84% 1.77% 1.66% 1.65% 1.33% 1.35% 1.01% 1.07% 1.02% 0.83% 0.86% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 26
Slide 27: Funding Mix
FUNDING MIX ₹ 26,673 Cr. ₹ 29,007 Cr. ₹ 29,251 Cr. ₹ 28,297 Cr. ₹ 32,915 Cr. ₹ 30,389 Cr. ₹ 40,340 Cr. 0.0% 3.4% 7.7% 2.5% 6.8% 15.1% 9.0% 11.0% 11.6% 14.3% 13.2% 14.8% 15.2% 11.0% 13.9% 20.4% 11.3% 16.7% 11.4% 8.3% 10.5% 19.9% 19.9% 16.7% 25.9% 22.1% 25.4% 34.8% 52.0% 54.0% 45.7% 41.1% 45.4% 39.2%
Slide 28: PAT & ROA
PAT & ROA ₹ in Crore Profit after Tax Return on Assets - % 1,126 1,088 2.8 2.8 2.8 948 903 809 2.5 522 772 724 300 2.3 53 243 2.0 # 2.0 # 366 303 671 604 226 282 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 EPS Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 101.4 65.2 72.8 81.3 98.0 69.5 85.3
Slide 29: Net Worth
NET WORTH ₹ in Crore Net worth 8,521 7,737 7,558 6,893 6,179 5,547 5,044 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Book Value 454.0 499.3 556.2 620.4 696.4 680.3 766.9 (₹) 29
Slide 30: Leverage and Capital Adequacy
LEVERAGE AND CAPITAL ADEQUACY Leverage Capital adequacy 5.0 4.9 24.4% 4.7 23.3% 4.6 22.8% 22.1% 4.2 19.4% 20.0% 4.0 4.0 18.4% Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-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 11,116 9,910 9,612 8,795 7,730 1,318 6,677 1,161 1,165 1,173 1,168 6,259 792 885 427 333 366 306 246 375 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 EPS 105.4 71.9 105.7 106.5 119.6 80.3 106.0 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 D
Slide 33: Consolidated Results
CONSOLIDATED RESULTS ₹ in Crore Particulars Share of Net Worth Share in Profit 31-Dec-22 31-Dec-23 9MFY23 9MFY24 Sundaram Finance Ltd. 7,558 8,521 772 948 Subsidiaries: Sundaram Home Finance Ltd. 1,739 1,883 150 179 Sundaram Finance Holdings Ltd. (Consolidated) 824 1,055 33 62 Sundaram Asset Managem
Slide 34: Sundaram Home Finance
SUNDARAM HOME FINANCE FY23 Particulars Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23 3,901 Disbursements (₹ in Crore) 1,252 1,214 961 3,559 2,697 55.6% Housing 53.2% 46.8% 50.9% 50.4% 56.1% 44.4% Non-Housing 46.8% 53.2% 49.1% 49.6% 43.9% 11,181 AUM (₹ in Crore) 12,973 12,332 10,564 12,973 10,564 64.9% Hou
Slide 35: Royal Sundaram
ROYAL SUNDARAM FY23 Particulars Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23 3,517 Gross Written Premium (₹ in Crore) 974 910 934 2,792 2,579 7,673 AUM (₹ in Crore) 8,513 8,140 7,744 8,513 7,744 44 PAT (₹ in Crore) 33 50 5 178 6 (121) Other Comprehensive Income (Net of Taxes) 4 (10) 10 27 (122) (77) Tota
Slide 36: Sundaram Asset Management
SUNDARAM ASSET MANAGEMENT FY23 Particulars Q3 FY24 Q2 FY24 Q3 FY23 9M FY24 9M FY23 54,804 AUM (₹ in Crores) 67,272 61,883 56,791 67,272 56,791 45,742 Equity (₹ in Crores) 57,784 52,532 48,034 57,784 48,034 9,062 Debt (₹ in Crores) 9,488 9,351 8,757 9,488 8,757 73 PAT (₹ in Crores) 30 24 22 74 56 404
Slide 37: More about Sundaram Finance
05 More about Sundaram Finance 37
Slide 38: Shareholding Pattern
SHAREHOLDING PATTERN 31-Dec-22 31-Dec-23 Top institutional shareholders As of 31st December 2023 Name of Shareholder Share % Axis Mutual Fund 4.72 Nalanda India Equity Fund Limited 3.78 32.3% 32.3% 38.5% 37.9% Kotak Mutual Fund 2.60 Bright Star Investments Pvt Ltd 2.37 HDFC Life Insurance Company Li
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
Dec-18 Mar-19 Jun-19 Sep-19 SHARE PRICE MOVEMENT Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 SFL Closing Share Price Jun-21 Sep-21 Dec-21 Indexed share price and Nifty from December 2018 Mar-22 S & P CNX Nifty Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 200.05 243.80 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 nearly 3 decades of rich experience in auto Finance, Insurance and Automo
Slide 43: Board of Directors
BOARD OF DIRECTORS Sri S. Mahalingam Sri Raghuttama Rao Raghavendra Sri L. Ganesh Independent Director Independent Director Independent Director 4 decades of experience in Finance and Information Has over 3 decades of work experience spanning Has over 4 decades of Industrial experience in and Techno
Slide 44: Board of Directors
BOARD OF DIRECTORS Sri Harsha Viji Sri Rajiv C. Lochan Sri A. N. Raju Executive Vice Chairman Managing Director Deputy Managing Director Has more than 2 decades of experience in areas of Has nearly 3 decades of experience in the field of Has nearly 4 decades of experience in the specialisation parti
Slide 45: 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 46: 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