Sundaram Finance (SUNDARMFIN) Q4 20/21 earnings summary

Executive summary

• Standalone FY21 PAT rose 12% YoY to ₹809.05 crore; excluding the prior-year one-time share-sale gain, PAT grew 21% on a like-for-like basis.

• Consolidated PAT attributable to owners increased to ₹1,165.08 crore from ₹791.54 crore; COVID-19 disruption constrained lending activity and clouded FY22 visibility.

Financial highlights

• Standalone operating revenue was ₹3,953.73 crore, up from ₹3,842.09 crore; total revenue was ₹4,014.20 crore and PBT ₹1,056.30 crore.

• Standalone PAT was ₹809.05 crore vs ₹723.95 crore; EPS rose to ₹72.82 from ₹65.16.

• Consolidated operating revenue increased to ₹5,247.67 crore from ₹4,695.41 crore; consolidated PAT was ₹1,223.00 crore before minority interest and ₹1,165.08 crore attributable to owners.

• Standalone disbursements fell 22.63% to ₹11,741 crore; receivables under management rose to ₹35,736 crore from ₹35,088 crore.

• Standalone Stage 3 assets improved to 1.84% gross and 1.01% net of ECL, from 2.47% and 1.65%, respectively.

Outlook and guidance

• Initial FY22 India GDP growth estimates of 11–13% were expected to lose 150–250 bps from second-wave restrictions; recovery remained highly uncertain.

• CV recovery could be delayed; infrastructure spending may support construction equipment, e-commerce may aid LCVs, and rural conditions may support tractors, subject to the pandemic.

• Passenger car and utility vehicle demand may benefit from personal-mobility needs, while semiconductor shortages and higher steel and fuel costs could weigh on recovery.