Sundaram Finance Q2 Results Review - Operating Performance On Expected Lines: Systematix

Systematix Research Report

Sundaram Finance Ltd.’s reported net interest income at Rs 4.2 billion, in-line with expectation, as higher-than-expected assets under management growth of 5% QoQ (7% YoY) was offset by marginal contraction of 12 bps in net interest margins at 5.3%.

However due to higher dividend income of Rs 884 million and lower credit costs of 0.3%, earnings came in ahead of estimates. AUM growth of 5.0% QoQ was on account of continued recovery in MCV and HCV along with demand in passenger vehicle.

Sundaram Finance's asset quality improved marginally, with gross/ net stage a3 at 2.5%/ 1.4%. Restructured assets declined to 3% of AUM from 4.0% in 1Q. We expect the growth momentum in vehicle portfolio to continue, aided by good monsoon, increasing infra-activity and higher replacement demand.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.