Sundaram Finance (SUNDARMFIN) Q4 19/20 earnings summary

Executive summary

• FY20 standalone PAT was ₹723.95cr; excluding prior-year exceptional gain, PAT rose from ₹604.05cr. Disbursements fell 11.62% amid automotive weakness and COVID-19 disruption.

• Consolidated PAT was ₹791.54cr versus ₹1,160.85cr; the prior year included a ₹465.85cr exceptional gain. COVID-19 uncertainty, weaker demand and higher credit impairments shaped the outlook.

Financial highlights

• Standalone revenue from operations rose to ₹3,842.09cr from ₹3,321.51cr; total revenue reached ₹3,926.94cr versus ₹3,342.07cr.

• Standalone PBT before exceptional items was ₹945.12cr versus ₹895.28cr; PAT was ₹723.95cr versus ₹1,126.31cr, which included prior-year exceptional income.

• Standalone EPS was ₹65.16 versus ₹101.37 reported; FY19 EPS excluding exceptional profit was ₹54.37.

• Consolidated revenue from operations increased to ₹4,695.41cr from ₹3,693.47cr; PBT before exceptional items was ₹999.56cr versus ₹951.93cr.

Outlook and guidance

• FY21 outlook remained uncertain, tied to the pandemic’s course, shutdowns, social-distancing requirements, stimulus measures and financial-sector balance-sheet stress; India GDP was projected to contract 3.2%.

• Near-term financing demand was expected to focus on working capital for small businesses and transport operators; an early CV recovery appeared unlikely.

• Rural prospects were supported by the rabi harvest, higher MSP and expected normal monsoon; personal-transport demand could support entry-level cars later in the year.