Hold Sundaram Finance; target of Rs 2200: ICICI Direct
ICICI Direct recommended hold rating on Sundaram Finance with a target price of Rs 2200 in its research report dated August 17, 2022.19-08-2022
19-08-2022
Sundaram Finance Q1 net up 18% amid lower finance costs, other expenses
Company records highest-ever quarterly disbursements in Q108-08-2022
Q1FY23 Quarterly Result Announced for Sundaram Finance Ltd.
Sundaram Finance announced Q1FY23 Result : Sundaram Finance logs highest ever Q1 disbursements of Rs. 4,895 crores, 138% over Q1FY22; Net profit for Q1FY23 up 18% at Rs. 226 Crores Continued improvement in asset quality with Gross Stage 3 assets at 2.51% (4.25% as of June 30, 2021) and Net stage 3 assets at 1.30% (3.12% as of June 30, 2021) Disbursements for Q1 FY23 up by 31% sequentially over Q4 FY22 Asssets under management up 2.4% to Rs. 30,552 crores compared to Q1 FY22 ROA at 2.5% (2.2% in Q1 FY21) and Capital Adequacy Ratio at 24.1% (23.5% in Q1 FY21) Standalone: Disbursements for Q1 FY23 recorded a growth of 138% to Rs. 4,895 crores as compared to Rs. 2,060 crores registered in Q1 FY22. The assets under management stood at Rs. 30,552 crores as on 30th June 2022 as against Rs.29,823 crores as on 30th June 2021. The total restructured assets under Covid relief measures enabled by the Reserve Bank of India were at Rs. 1,234 crores, about 4.07% of loan outstanding, as on 30th June 2022. Grossstage 3 as on 30th June 2022 stood at 2.51% with 49% provision cover as against 4.25% with provision cover of 27% as on 30th June 2021. Net stage 3 as on 30th June 2022 closed at 1.30% as against 3.12% as on 30th June 2021. As on 30th June 2022 Gross & Net NPA as per the existing RBl norms are 2.66% & 1.41% as against 4.59% & 3.38% as on 30th June 2021. With a view to ensuring uniformity in the implementation of lRACP norms across all lending institutions, RBl vide its circular dated 12th November 2021 -"Prudential norms on Income Recognition, Asset Classification and Provisioning (lRACP) pertaining to Advances" has clarified the NPA norms for NBFCs. RBl vide its clarification dated February 15, 2022, has given time till September 30, 2022, for implementation of certain provisions relating to "lRACP" stipulated in their circular dated November 12, 2021. The Company continues to prepare the financial results in accordance with the applicable lnd-AS guidelines and maintains adequate ECL provisions as per lnd AS 109. If the company had adopted the provisions of the November 12, 2021 circular from the RBl, the Gross and Net NPA would be 5.22% and 3.83% respectively. As the company has indicated earlier, the underlying business risk has not undergone any change, Cost to income ratio closed at 33.4% in Q1 FY23 as against 31.5% in Q1 FY22. The deposit base stood at Rs. 4,129 crores as on 30th June 2022, a net accretion of Rs.26 crores over 31st March 2022. Profit after tax registered an 18% rise in Q1 FY23, with net profit at Rs. 226 crores. The company had registered a net profit of Rs.192 crores in Q1 FY22. Return on assets (ROA) for Q1 FY23 closed at 2.5% as against 2.2% for Q1 FY22. Return of equity (ROE) was at 12.9% for Q1 FY23 as against 12.2% for Q1 FY22. If we exclude investments in subsidiaries and group companies, core ROE was at 15.5% for Q1 FY23 as against 16.7% for Q1 FY22. Consolidated: The assets under management (AUM) in our lendingand general insurance businesses stood at Rs. 47,432 crores as on 30th June 2022 as against Rs. 45,832 crores as on 30th June 2021. The assets under management of our asset management business stood at Rs. 48,810 crores as on 30th June 2022 as against Rs. 43,025 crores as on 30th June 2021. Profits after tax down by 13.9% in Q1 FY23, with net profit at Rs. 246 crores compared to profit after tax of Rs. 285 crores in Q1 FY22. "We have re-established our pre-pandemic growth trajectory with the highest-ever first quarter disbursements of Rs. 4,895 crores and registered 138% growth over the first quarter of last year. Coupled with continued strong improvement in our asset quality levels and a healthy 18% increase in profits, we have delivered a strong quarter of Growth with Quality and Profitability. Overall economic activity continues to improve across all segments despite inflationary concerns and related interest rate hikes," said Harsha Viji, Executive Vice Chairman. Result PDF08-08-2022
SUNDARAM FINANCE LTD. - 590071 - Results Press Release for June 30, 2022
Sundaram Finance Ltd has informed BSE about : 1. Result Press Release for the period ended June 30, 202208-08-2022
SUNDARAM FINANCE LTD. - 590071 - Standalone & Consolidated Financial Results, Limited Review Report for June 30, 2022
Sundaram Finance Ltd has informed BSE about : 1. Standalone Financial Results for the period ended June 30, 20222. Consolidated Financial Results for the period ended June 30, 20223. Standalone Limited Review for the period ended June 30, 20224. Consolidated Limited Review for the period ended June 30, 202208-08-2022
SUNDARAM FINANCE LTD. - 590071 - Board Meeting Intimation for Results
Sundaram Finance Ltd has informed BSE that a meeting of the Board of Directors of the Company has been convened on August 08, 2022 to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2022.02-08-2022
SUNDARAM FINANCE LTD. - 590071 - Disclosure of Voting results of AGM (Regulation 44(3) of SEBI (LODR) Regulations, 2015)
Sundaram Finance Ltd has informed BSE regarding the details of Voting results at the 69th Annual General Meeting (AGM) of the Company held on July 27, 2022, under Regulation 44(3) of SEBI (LODR) Regulations, 2015 along with Scrutinizer''s Report and Proceedings of the Meeting in this regard.29-07-2022
SUNDARAM FINANCE LTD. - 590071 - Notice pursuant to Regulation 47 & 30 of the SEBI (LODR) Regulations, 2015
Sundaram Finance Ltd has submitted to BSE a copy of Notice pursuant to Regulation 47 & 30 of the SEBI (LODR) Regulations, 2015.05-07-2022
SUNDARAM FINANCE LTD. - 590071 - AGM on July 27, 2022
Sundaram Finance Ltd has informed BSE that the 69th Annual General Meeting (AGM) of the Company will be held on July 27, 2022.05-07-2022
SUNDARAM FINANCE LTD. - 590071 - Updates on Demerger
Sundaram Finance Ltd has informed BSE that, "today, the Board of Directors of our Company have granted an ''in-principle'' approval] for the proposed de-merger of the fund accounting business of Sundaram Fund Services Limited, wholly ownedsubsidiary, into Sundaram Asset Management Company Limited, another wholly owned subsidiary of our Company, pursuant to a proposed Scheme of Arrangement to be formulated in accordance with the provisions of Sections 230 to 232 of the Companies Act, 2013."01-07-2022