Sundaram Finance Limited has informed the Exchange about Investor Presentation
PERFORMANCE HIGHLIGHTS 2020-21
Contents
Financial results & performance
Key trends in financial performance
Consolidated results
About the company
The Sundaram Way
Vision: To be the most respected NBFC in the country
Growth Quality Profitability
Mission: To deliver the “Sundaram experience” our customers, big and small, in keeping with the ethos of the company
all
to
As of 31st March 2021
AUM
Rs. 30,882 crores
3% growth over FY20
Gross Stage 3
Cost-to-income
ROA
ROE
1.84%
30.6%
2.3%
13.8%*
2.47% in FY20
34.2% in FY20
2.2% in FY20
13.7% in FY20
* Core ROE (excluding investments in subsidiaries) at 19.3% vs. 16.3%
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 registered in the corresponding quarter of the previous year. Disbursements of Rs.11,742 crores for FY21 as compared to Rs.15,175 crores in FY20.
• The assets under the management stood at Rs.30,882 crores as on 31st March 2021 as against
Rs.29,936 crores as on 31st March 2020, representing a growth of 3%
• Pursuant to RBI’s notification on restructuring of advances to MSME customers, restructured assets
totaled Rs.1,307 crores, about 4.42% of principal outstanding.
• The restructuring has been targeted at sectors and segments severely impacted by the Covid-19 pandemic: education (school bus operators), transportation (staff and route bus operators), travel/tourism (tour operators, taxi operators) and market-load operators amongst commercial vehicles who have been hit by lack of demand for their services as well as rising fuel prices.
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
• Net stage III assets as of 31st March 2021 closed at 1.01% against 1.65% as on 31st
March 2020
• Gross NPA as on 31st March 2021 stood at 2.28% when compared to 2.77% as on 31st
March 2020
• Net NPA as on 31st March 2021 stood at 1.35% when compared to 1.92% as on 31st
March 2020
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 crores as against
Rs.131 crores in Q4FY20
• For FY21, the company registered a net profit of Rs.809 crores compared to Rs. 671 crores in
the year ago period (excluding one-time gain of Rs. 53 crores), a growth of 21%.
• Return on assets (ROA) for Q4FY21 closed at 2.3% against 1.5% for Q4FY20. For the year
ending March 31, 2021, ROA was at 2.3% against 2.2% for FY20.
• Return of equity (ROE) was at 13.8% for the year ending March 31, 2021 as against 13.7% for If we exclude investments in subsidiaries and group
the year ending March 31, 2020. companies, core ROE was at 19.3% for FY21 against 16.3% for FY20.
Profit & Loss Statement
Particulars
Revenue From Operations * Other Income Total Revenue Finance cost Operating expenses Impairment on financial instruments Total Expenses Profit Before Tax Profit After Tax Other Comprehensive Income (net of taxes) Total Comprehensive Income
Quarter Ended March 2020 931.41 11.61 943.02 515.64 146.13 115.69 777.46 165.56 130.89 4.65 135.54
₹ in Crore
Quarter Ended March 2021
2019-20
2020-21
957.12 50.43 1,007.55 484.72 153.98 105.53 744.23 263.32 209.20 (1.08) 208.12
3,804.55 84.85 3,889.40 2,072.03 585.85 286.40 2,944.28 945.12 723.95 63.17 787.12
3,917.00 60.46 3,977.46 2,030.73 574.37 316.06 2,921.16 1,056.30 809.05 (4.83) 804.22
* Revenue from operations is net of depreciation on operating lease
During the year 2019-20, the Company has divested its entire holdings in Equifax Credit Information Services Pvt Ltd., resulting in a gain of ₹62.07Cr. (net of tax) accounted under other comprehensive income, as the said investment was measured at fair value through other comprehensive income.
Balance Sheet
Particulars
31-Mar-20
31-Mar-21
₹ in Crore
EQUITY AND LIABILITIES
Financial Liabilities Non Financial Liabilities Equity
27,824.60 47.54 5,547.37
28,724.24 48.77 6,179.45
Total - EQUITY AND LIABILITIES
33,419.51
34,952.46
ASSETS
Financial Assets Non Financial Assets
Total - ASSETS
32,725.79 693.72
34,182.51 769.95
33,419.51
34,952.46
Contents
Financial results & performance
Key trends in financial performance
Consolidated results
About the company
Financial Summary
Year
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Paid-up Capital
55.55 55.55 * 111.10 111.10 111.10 111.10 111.10 111.10 111.10 111.10 111.10
Networth Disbursements
1,530 1,789 2,087 2,405 2,978 3,313 3,746 4,134 5,044 5,547 6,179
7,592 9,433 9,991 9,719 10,012 11,444 13,218 15,712 17,170 15,175 11,742
Receivables Under Management 12,354 15,540 17,645 18,158 18,734 20,699 24,036 28,648 33,447 35,088 35,736
₹ in Crore
PAT
Dividend %
Market Capitalisation
295.23 355.45 410.11 442.51 454.14 477.28 ** 495.35 563.44
140 155 90 100 105 110 115 120
@ 604.04 # 175
723.95 809.05
130 180
2,722 3,645 5,265 7,359 16,859 14,450 17,940 18,634 17,318 13,366 28,560
* Increase in Capital by way of 1:1 bonus issue. ** Adjusted for demerger ₹ 460.57 Cr. # Includes special dividend of 50%. @ Excludes exceptional item Market Capitalisation is as on 31st March of the respective years.
Disbursements and AUM
₹ in Crore
17,170
Disbursements
15,175
11,742
2018-19
2019-20
2020-21
Growth
9.3%
-11.6%
-22.6%
2000000.0%
1800000.0%
1600000.0%
1400000.0%
1200000.0%
1000000.0%
800000.0%
600000.0%
400000.0%
200000.0%
0.0%
-200000.0%
AUM
On Books
Direct Assignment
28,984
4.8%
29,936
4.6%
30,882
2.7%
95.2%
95.4%
97.3%
7000000.0%
6000000.0%
5000000.0%
4000000.0%
3000000.0%
2000000.0%
1000000.0%
0.0%
31-Mar-19
31-Mar-20
31-Mar-21
Growth
16.1%
3.3%
3.2%
Disbursements
2019-20
7.0%
5.2%
e s i w
t e s s A
e s i w n o i g e R
11.3%
24.7%
₹ 15,175 Cr.
51.8%
14.7…
11.5%
32.8%
2020-21
₹ 11,742 Cr.
13.5%
27.5%
CVs
Cars
Construction Equipment
Tractors
Others
CVs
Cars
Construction Equipment
Tractors
Others
4.2%
12.9%
4.9%
10.6%
21.1%
₹ 15,175 Cr.
61.8%
₹ 11,742 Cr.
26.0%
58.5%
South
North
West
East
South
North West
East
AUM
31-Mar-20
6.2%
6.0%
9.2%
7.5%
31-Mar-21
e s i w
t e s s A
e s i w n o i g e R
10.4%
24.9%
₹ 29,936 Cr.
52.5%
11.2%
₹ 30,882 Cr.
47.4%
24.7%
CVs
Cars
Construction Equipment
Tractors
Others
CVs
Cars
Construction Equipment
Tractors
Others
3.7%
12.8%
4.1%
12.3%
19.9%
₹ 29,936 Cr.
63.6%
21.6%
₹ 30,882 Cr.
62.0%
South
North
West
East
South
North West
East
Portfolio Quality
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Stage III %
Stage III % (Net of ECL)
2.47%
1.65%
1.84%
1.01%
1.33%
0.83%
31-Mar-19
31-Mar-20
31-Mar-21
Funding Mix
52.0%
45.7%
39.2%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Total Borrowing
31-Mar-19
31-Mar-20
31-Mar-21
₹ 26,673 Cr.
₹ 29,007 Cr.
₹ 29,251 Cr.
25.4%
19.9%
20.4%
16.7%
16.7%
11.3%
11.6%
13.2%
14.3%
7.7%
3.4%
2.5%
Debentures
Bank Borrowings *
Securitisation
Deposits
Commercial Paper
31-Mar-19
31-Mar-20
31-Mar-21
* Includes a) Term loans b) Commercial Papers and demand loans availed against the sanctioned limits.
Key Ratios
Profit after Tax
724
809
604
2018-19*
2019-20
2020-21
EPS (₹)
54.37
65.16
72.82
* Adjusted for exceptional item
1000
900
800
700
600
500
400
300
200
100
0
₹ in Crore
Net worth
Return on Core Equity
16.5%
16.3%
19.3%
5,044
5,547
6,179
31-Mar-19
31-Mar-20
31-Mar-21
Book Value (₹)
453.97
499.30
556.19
21.0%
19.0%
17.0%
15.0%
13.0%
11.0%
9.0%
7.0%
Key Ratios
5.5
5.0
4.5
4.0
3.5
3.0
Debt Equity
CAR
19.4%
18.4%
22.1%
5.0
4.9
4.6
31-Mar-19
31-Mar-20
31-Mar-21
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
39.0%
37.0%
35.0%
33.0%
31.0%
29.0%
27.0%
25.0%
Cost to net Income
ROA *
2.00% #
2.17%
2.29%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
36.8%
2018-19
34.2%
2019-20
30.6%
2020-21
* Assets includes portfolio of Direct assignment
# Adjusted for exceptional item
Contents
Financial results & performance
Key trends in financial performance
Consolidated results
About the company
Consolidated Results
₹ in Crore
Profit after Tax
1,161
1,165
791.54
2018-19
2019-20
2020-21
EPS (₹)
105.40
71.85
105.74
Net Worth
7,730
6,259
6,677
31-Mar-19
31-Mar-20
31-Mar-21
Book Value (₹)
568.29
606.09
701.60
Consolidated Results
Particulars
Sundaram Finance Ltd.
₹ in Crore
Share of Net Worth
Share in Profit
31-Mar-20 5,547.37
31-Mar-21 6,179.45
2019-20 723.95
2020-21 809.05
Subsidiaries: Sundaram Finance Holdings Ltd. (Consolidated) Sundaram Asset Management Company Ltd. (Consolidated) Sundaram Home Finance Ltd Sundaram Fund Services Ltd Sundaram Trustee Company Ltd. LGF Services Ltd Sundaram Finance Employees Welfare Trust
401.31 212.55 1,421.07 36.72 1.88 3.61 16.16
474.29 253.74 1,558.70 36.84 1.89 3.52 16.95
18.45 32.69 165.89 18.07 0.80 0.11 2.30
15.96 55.13 191.64 0.11 0.72 0.06 0.79
Non-Controlling Interests in Subsidiaries
1,455.47
1,720.25
53.86
57.92
Joint Control Entities Royal Sundaram General Insurance Co. Ltd
Adjustment arising out of Consolidation
544.96
714.36
(38.17)
156.74
9,641.10 (1,508.80)
10,959.99 (1,509.50)
977.95 (132.54)
1,288.12 (65.12)
Total
8,132.30
9,450.49
845.41
1,223.00
Sundaram Home Finance
Particulars Disbursements (₹ in Crore) -Housing -Non-Housing AUM (₹ in Crore) -Housing -Non-Housing
PAT (₹ in Crore) * EPS (₹) Net worth (₹ in Crore) Book Value (₹)
Stage III assets % Stage III assets % (net of ECL) CAR – As per Regulation
31-Mar-2020 2,113 71.4% 28.6% 9,638 69.8% 30.2%
31-Mar-2021 1,254 76.1% 23.9% 9,173 70.0% 30.0%
218 21.54 1,421 140.35
4.72% 1.63% 23.0%
192 18.93 1,559 153.94
4.48% 1.09% 24.9%
115 Branches 826 Employees *PAT for FY 20-21 is not comparable with that of the previous year, which included a onetime exceptional item of ₹.60.25 Cr on account of write back of deferred tax liability on special reserve.
108 784
Royal Sundaram
Particulars
31-Mar-2020 31-Mar-2021
Gross Written Premium (₹ in Crores) PAT (₹ in Crores) Other Comprehensive Income (Net of Taxes)
Total Comprehensive Income Net worth (₹ in Crores)
Combined Operating Ratio Employees
3,718 (76) 67
(9) 1,090
111% 2,390
2,883 313 26
339 1,429
110% 2,323
* For the year ended 31st March 2020, the company has provided ₹ 164.11 Cr. (net of tax) towards impairment in respect of debt exposure and MTM on equity investments (PY ₹ 7.17 Cr).
Sundaram Asset Management
Particulars
31-Mar-2020
31-Mar-2021
AUM (₹ in Crores)
-Equity (₹ in Crores)
-Debt (₹ in Crores)
PAT (₹ in Crores)
Net worth (₹ in Crores)
Employees
30,288
20,824
9,464
33
213
367
41,196
31,709
9,487
55
254
359
Retail Investors
10,87,296
10,24,674
Contents
Financial results & performance
Key trends in financial performance
Consolidated results
About the company
Shareholding Pattern
31-Mar-20
38.8%
31-Mar-21
35.9%
35.9%
36.0%
4.0%
12.8%
8.5%
3.7%
17.2%
7.2%
Public
Mutual Funds & AIFs
Promoters
FIIs / FPIs and NRIs
Banks, Financial Institutions & Insurance Companies
Branch Network
31-Mar-20
31-Mar-21
No. of Branches : 610
No. of Branches : 588
64
41
65
40
168
337
161
322
No. of Employees : 4,213
No. of Employees : 4,211
South
North West
East
Credit Ratings
Instrument
Deposits
ICRA
CRISIL
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
Short Term Loans
A1+
A1+
A1+
Share Price Movement
SFL Closing Share Price
S & P CNX Nifty
In ₹
e c i r P e r a h S g n i s o C L F S
l
2,800
2,500
2,200
1,900
1,600
1,300
1,000
16,000
2,570
13,982
14,691
14,000
1,615 1,608
1,878
1,677
1,686
10,531
9,789
10,114
9,521
9,174
11,789
11,624
11,474
10,930 10,863
1,672
1,600
12,168
10,714
1,514
1,559
1,439
1,631
1,632
11,248
10,302
1452
1,804
1,203
8,598
1,301
7 1 - r a M
7 1 - n u J
7 1 - p e S
7 1 - c e D
8 1 - r a M
8 1 - n u J
8 1 - p e S
8 1 - c e D
9 1 - r a M
9 1 - n u J
9 1 - p e S
9 1 - c e D
0 2 - r a M
0 2 - n u J
0 2 - p e S
0 2 - c e D
1 2 - r a M
Share price movement after 1st Feb 2018 is post demerger
12,000
y t f i
N X N C P & S
10,000
8,000
Subsidiaries, Joint Ventures & Associates
Subsidiaries
Sundaram Home Finance Limited
Sundaram Finance Holdings Limited
Sundaram Business Services Limited
Sundaram Asset Management Company Limited
Sundaram Asset Management Singapore Pte. Limited
Sundaram Trustee Company Limited
Sundaram Alternate Assets Limited
Sundaram Fund Services Limited
LGF Services Limited
Joint Venture
Royal Sundaram General Insurance Co. Limited
Associates of a Subsidiary Company
Axles India Limited Wheels India Limited Turbo Energy Private Limited Transenergy Limited Sundaram Dynacast Private Limited Sundaram Hydraulics Limited Flometallic India Private Limited Dunes Oman LLC (FZC) Mind S.r.l.
Board of Directors as on 28.05.2021
Name of the Director Sri S Viji Chairman
Sri S Ram
Sri Raghuttama Rao Raghavendra Independent Director
Sri P N Venkatachalam Independent Director
Sri S Mahalingam Independent Director
Expertise
Has over 5 decades of experience in Banking, Finance, Insurance and Automotive Component Manufacturing Industry. He is the Managing Director of Brakes India Private Limited.
Qualification B.Com, ACA, MBA (University of Michigan, USA)
and Has over 5 decades of work experience in Vehicle Component Industry . He is the Chairman of Wheels India Ltd., Axles India Ltd and India Motor Parts & Accessories Ltd.
BE (Mechanical), MS (Production Engineering) (Birmingham University, UK)
Has 3 over Manufacturing, Management Consulting.
decades of work Financial Markets,
experience Public
spanning and
Policy
Has nearly 4 decades of experience in Banking, Finance and Capital Markets. Formerly Managing Director of State Bank of India.
4 decades of experience in Finance and Information Technology. Formerly Chief Financial Officer and Executive Director of Tata Consultancy Services.
B.Tech. (Mech. Engg.) – IIT Madras, CMA – ICWAI, P.G.D.M. - IIM Ahmedabad
MA (Economics), CAIIB
B.Com (Honours), FCA
Sri S Prasad Independent Director
Has more than a decade experience in industry as finance professional and 38 years as a practicing Chartered Accountant.
FCA
Board of Directors as on 28.05.2021
Name of the Director Sri L Ganesh Independent Director
Expertise Has over 44 years of Industrial experience in and overall management of the companies. He is the Chairman of the Rane Group, one of the acknowledged leaders in the auto component industry since 2006.
Qualification MBA((Pennsylvania State University, USA), ACA
Ms Shobhana Ramachandhran Independent Director
3 decades of experience in General Management and automobile industry. She is the Managing Director of TVS Srichakra Limited.
MA (English Literature)
Sri T T Srinivasaraghavan
Has nearly 4 decades of experience in Banking and Financial Services. He was the Managing Director of the company for 18 years and laid down his office recently in Mar 21.
B.Com, MBA (Gannon University, Pennsylvania)
Sri Harsha Viji Executive Vice Chairman
Has more than 2 decades experience in areas of specialisation joint venture negotiations, new particularly, strategy formulation, business development.
B.Com, ACA MBA (Ann Arbor, Michigan)
Sri Rajiv C. Lochan Managing Director
Has 2.5 decades of experience in the field of management especially in the areas of finance, social sector, and public health.
Sri A N Raju Deputy Managing Director
3 decades of experience in the Automobile, Engineering, Finance and General Management.
B.Tech. (IIT), MS (MIT), MBA (Columbia Business School) BSc (Engineering), MBA
Key Managerial Personnel
Name Sri M. Ramaswamy Chief Financial Officer
Sri P. Viswanathan Company Secretary & Compliance Officer
Expertise
He has over 35 years of experience in the Company. He is the Chief Financial Officer of the Company from Sep 2011. He is responsible for the Treasury Management, Financial Planning & Accounting, Taxation and Regulatory Compliance. He is a member of the Risk Management Committee and Asset Liability Management of the Company.
Qualification B.Sc. (Statistics), ACA
B.Com, FCS
in
of
45
has
over
years
experience
He the Company/Group. He became the Company Secretary and Compliance Officer of the Company from Sep 2011. He is responsible for statutory compliance in respect of all laws including and regulations applicable to the Company, Company Law, SEBI and RBI. He liaisons with the Board Members in connection with all Board related actions in the Company. He was Chairman of the Expert Committee on Company law of Madras Chamber of Commerce and Industry and is a Committee Member of Finance Companies Association of India.
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 accurate, to the best of our knowledge. No information contained herein has been independently verified by anyone else or approved by any regulatory authorities. No warranty is given as to their accuracy and the company does not accept any responsibility and shall not be liable for any direct or indirect loss caused, arising from and/or use of this document.
Forward-looking statements, if any, are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant statement.
The contents of the website are subject to changes and reviews from time to time without notice. By accessing the site, you are deemed to accept the disclaimer clause.
Shri M Ramaswamy Chief Financial Officer Sundaram Finance Limited 21, Patullos Road Chennai – 600002 Phone(D) Mail
: 044 – 28881341 : m.ramaswamy@sundaramfinance.in
Shri P Viswanathan Secretary & Compliance Officer Sundaram Finance Limited 21, Patullos Road Chennai – 600002 Phone(D) Mail
: 044 – 28881207 : pv@sundaramfinance.in