Sundaram Finance Limited · NSE:SUNDARMFIN
Sundaram Finance — FY2021 Earnings Presentation
34 slides from Sundaram Finance's earnings presentation, March 2021
Slide 1: Performance Highlights 2020-21
PERFORMANCE HIGHLIGHTS 2020-21
Slide 2: Contents
Contents Financial results & performance Key trends in financial performance Consolidated results About the company
Slide 3: The Sundaram Way
The Sundaram Way Mission: Vision: To deliver the “Sundaram To be the most experience” to all our respected NBFC in customers, big and small, in the country keeping with the ethos of the company Growth Quality Profitability
Slide 4: AUM Rs. 30,882 crores, 3% growth over FY20
As of 31st March 2021 AUM Rs. 30,882 crores 3% growth over FY20 Gross Stage 3 1.84% 2.47% in FY20 Cost-to-income 30.6% 34.2% in FY20 ROA 2.3% 2.2% in FY20 ROE 13.8%* 13.7% in FY20 * Core ROE (excluding investments in subsidiaries) at 19.3% vs. 16.3%
Slide 5: Disbursements for Q4 FY 2020-21 recorded a growth of 13%
Growth was significantly hit by to the Covid pandemic and consequent national lockdown. The related impact to the automotive sector and commercial vehicle, already on a 3-year downcycle • Disbursements for Q4 FY 2020-21 recorded a growth of 13% to Rs. 3,305 crores as compared to Rs.2,930 crores regi
Slide 6: Asset quality remained best-in-class in the industry
Our asset quality remained best-in-class in the industry on account of our traditionally tight credit filters and our thrust on digital payments • Gross stage III assets as on 31st March 2021 stood at 1.84% with 46% provision cover as against 2.47% with provision cover of 34% as on 31st March 2020 •
Slide 7: Profit growth was robust, enabled by asset quality and cost control
Profit growth was robust, enabled by our asset quality and tight control of costs • Cost to income closed at 31.8% in Q4FY21 as against 34.9% in Q4FY20. For FY21, cost to income closed at 30.6% as against 34.2% for FY20 • Profit after tax registered a 60% rise in Q4 FY21, with net profit at Rs. 209
Slide 8: Profit & Loss Statement
Profit & Loss Statement ₹ in Crore Quarter Quarter Ended Particulars Ended 2019-20 2020-21 March 2021 March 2020 Revenue From Operations * 931.41 957.12 3,804.55 3,917.00 Other Income 11.61 50.43 84.85 60.46 Total Revenue 943.02 1,007.55 3,889.40 3,977.46 Finance cost 515.64 484.72 2,072.03 2,030.73
Slide 9: Balance Sheet
Balance Sheet ₹ in Crore Particulars 31-Mar-20 31-Mar-21 EQUITY AND LIABILITIES Financial Liabilities 27,824.60 28,724.24 Non Financial Liabilities 47.54 48.77 Equity 5,547.37 6,179.45 Total - EQUITY AND LIABILITIES 33,419.51 34,952.46 ASSETS Financial Assets 32,725.79 34,182.51 Non Financial Assets
Slide 10: Contents
Contents Financial results & performance Key trends in financial performance Consolidated results About the company
Slide 11: Financial Summary
Financial Summary ₹ in Crore Receivables Paid-up Dividend Market Year Networth Disbursements Under PAT Capital % Capitalisation Management 2010-11 55.55 1,530 7,592 12,354 295.23 140 2,722 2011-12 55.55 1,789 9,433 15,540 355.45 155 3,645 2012-13 * 111.10 2,087 9,991 17,645 410.11 90 5,265 2013-14 1
Slide 12: Disbursements and AUM
Disbursements and AUM ₹ in Crore Disbursements 2000000.0% 17,170 1800000.0% 15,175 1600000.0% 1400000.0% 11,742 1200000.0% 1000000.0% 800000.0% AUM 7000000.0% 600000.0% On Books Direct Assignment 6000000.0% 400000.0% 200000.0% 0.0% 5000000.0% -200000.0% 2018-19 2019-20 2020-21 28,984 29,936 30,882 4
Slide 13: Disbursements by asset and region
Disbursements 5.2% 2019-20 7.0% 14.7… 2020-21 11.5% Asset wise 11.3% 32.8% ₹ 15,175 Cr. 51.8% ₹ 11,742 Cr. 13.5% 24.7% 27.5% CVs Cars Construction Equipment Tractors Others CVs Cars Construction Equipment Tractors Others 4.2% 4.9% Region wise 12.9% 10.6% ₹ 11,742 Cr. 21.1% ₹ 15,175 Cr. 26.0% 58.5% 6
Slide 14: AUM by asset and region
AUM 6.0% 9.2% 31-Mar-20 6.2% 31-Mar-21 7.5% Asset wise 10.4% 11.2% 47.4% ₹ 29,936 Cr. 52.5% ₹ 30,882 Cr. 24.9% 24.7% CVs Cars Construction Equipment Tractors Others CVs Cars Construction Equipment Tractors Others 3.7% 4.1% Region wise 12.8% 12.3% 19.9% ₹ 29,936 Cr. 21.6% ₹ 30,882 Cr. 62.0% 63.6% Sou
Slide 15: Portfolio Quality
Portfolio Quality Stage III % Stage III % (Net of ECL) 3.00% 2.47% 2.50% 2.00% 1.84% 1.65% 1.50% 1.33% 1.01% 1.00% 0.83% 0.50% 0.00% 31-Mar-19 31-Mar-20 31-Mar-21
Slide 16: Funding Mix
Funding Mix 60.0% Total 31-Mar-19 31-Mar-20 31-Mar-21 52.0% Borrowing ₹ 26,673 Cr. ₹ 29,007 Cr. ₹ 29,251 Cr. 50.0% 45.7% 39.2% 40.0% 30.0% 25.4% 19.9% 20.4% 20.0% 16.7% 16.7% 11.6% 13.2% 14.3% 11.3% 10.0% 7.7% 3.4% 2.5% 0.0% Debentures Bank Borrowings * Securitisation Deposits Commercial Paper 31-Ma
Slide 17: Key Ratios
Key Ratios ₹ in Crore Profit after Tax 1000 809 900 724 800 Net worth Return on Core Equity 604 700 600 21.0% 500 19.3% 400 16.3% 19.0% 300 200 16.5% 17.0% 100 0 15.0% 2018-19* 2019-20 2020-21 13.0% 11.0% EPS (₹) 54.37 65.16 72.82 9.0% 5,044 5,547 6,179 7.0% * Adjusted for exceptional item 31-Mar-19
Slide 18: Key Ratios
Key Ratios Debt Equity CAR 5.5 25.0% 22.1% 19.4% 5.0 18.4% 20.0% 4.5 15.0% Cost to net Income ROA * 2.29% 2.50% 4.0 10.0% 39.0% 2.17% 2.00% # 37.0% 2.00% 3.5 5.0% 35.0% 5.0 4.9 4.6 1.50% 3.0 0.0% 33.0% 31-Mar-19 31-Mar-20 31-Mar-21 31.0% 1.00% 29.0% 0.50% 27.0% 36.8% 34.2% 30.6% 25.0% 0.00% 2018-19
Slide 19: Contents
Contents Financial results & performance Key trends in financial performance Consolidated results About the company
Slide 20: Consolidated Results
Consolidated Results ₹ in Crore Profit after Tax 1,161 1,165 Net Worth 791.54 7,730 6,677 6,259 2018-19 2019-20 2020-21 EPS (₹) 105.40 71.85 105.74 31-Mar-19 31-Mar-20 31-Mar-21 Book Value (₹) 568.29 606.09 701.60
Slide 21: Consolidated Results
Consolidated Results ₹ in Crore Particulars Share of Net Worth Share in Profit 31-Mar-20 31-Mar-21 2019-20 2020-21 Sundaram Finance Ltd. 5,547.37 6,179.45 723.95 809.05 Subsidiaries: Sundaram Finance Holdings Ltd. (Consolidated) 401.31 474.29 18.45 15.96 Sundaram Asset Management Company Ltd. (Conso
Slide 22: Sundaram Home Finance
Sundaram Home Finance Particulars 31-Mar-2020 31-Mar-2021 Disbursements (₹ in Crore) 2,113 1,254 -Housing 71.4% 76.1% -Non-Housing 28.6% 23.9% AUM (₹ in Crore) 9,638 9,173 -Housing 69.8% 70.0% -Non-Housing 30.2% 30.0% PAT (₹ in Crore) * 218 192 EPS (₹) 21.54 18.93 Net worth (₹ in Crore) 1,421 1,559
Slide 23: Royal Sundaram
Royal Sundaram Particulars 31-Mar-2020 31-Mar-2021 Gross Written Premium (₹ in Crores) 3,718 2,883 PAT (₹ in Crores) (76) 313 Other Comprehensive Income (Net of Taxes) 67 26 Total Comprehensive Income (9) 339 Net worth (₹ in Crores) 1,090 1,429 Combined Operating Ratio 111% 110% Employees 2,390 2,32
Slide 24: Sundaram Asset Management
Sundaram Asset Management Particulars 31-Mar-2020 31-Mar-2021 AUM (₹ in Crores) 30,288 41,196 -Equity (₹ in Crores) 20,824 31,709 -Debt (₹ in Crores) 9,464 9,487 PAT (₹ in Crores) 33 55 Net worth (₹ in Crores) 213 254 Employees 367 359 Retail Investors 10,87,296 10,24,674
Slide 25: Contents
Contents Financial results & performance Key trends in financial performance Consolidated results About the company
Slide 26: Shareholding Pattern
Shareholding Pattern 31-Mar-20 31-Mar-21 35.9% 38.8% 35.9% 36.0% 8.5% 4.0% 12.8% 7.2% 3.7% 17.2% Public Promoters Mutual Funds & AIFs FIIs / FPIs and NRIs Banks, Financial Institutions & Insurance Companies
Slide 27: Branch Network
Branch Network 31-Mar-20 31-Mar-21 No. of Branches : 610 No. of Branches : 588 41 64 40 65 168 337 322 161 No. of Employees : 4,213 No. of Employees : 4,211 South North West East
Slide 28: 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+
Slide 29: Share Price Movement
Share Price Movement In ₹ SFL Closing Share Price S & P CNX Nifty 2,800 16,000 2,570 2,500 13,982 14,691 14,000 SFL Closing Share Price 2,200 S & P CNX Nifty 1,878 11,789 12,168 1,900 11,624 11,474 11,248 12,000 1,677 1,804 1,686 10,930 10,863 1,672 10,302 1,615 1,608 1,600 1,600 10,531 1,559 10,714
Slide 30: 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 Associates of a Subsidiary Company Sundaram Asset Management Company Limited Axles Indi
Slide 31: Board of Directors as on 28.05.2021
Board of Directors as on 28.05.2021 Name of the Director Expertise Qualification Sri S Viji Has over 5 decades of experience in Banking, Finance, Insurance B.Com, ACA, Chairman and Automotive Component Manufacturing Industry. He is the MBA (University of Managing Director of Brakes India Private Lim
Slide 32: Board of Directors as on 28.05.2021
Board of Directors as on 28.05.2021 Name of the Director Expertise Qualification Sri L Ganesh Has over 44 years of Industrial experience in and overall management MBA((Pennsylvania State Independent Director of the companies. He is the Chairman of the Rane Group, one of the University, USA), ACA ack
Slide 33: Key Managerial Personnel
Key Managerial Personnel Name Expertise Qualification Sri M. Ramaswamy He has over 35 years of experience in the Company. He is B.Sc. (Statistics), ACA Chief Financial Officer the Chief Financial Officer of the Company from Sep 2011. He is responsible for the Treasury Management, Financial Planning
Slide 34: Disclaimer
Disclaimer 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 accu