Centrum Broking: Sundaram Finance Logs In-Line Q1 Performance, Asset Quality Intact

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.Sundaram Finance Ltd.’s earnings were largely in-line. Net interest income at Rs 3.8 billion came in as expected though drop in fee income led to a miss on pre-provision operating profit.Healthy net interest margin trajectory was intact with incremental funding cost trending downwards. Assets under management declined by 1.3% YoY as disbursements saw a steep drop though repayments were higher which was a positive.Disbursements and collection efficiency are picking up. Asset quality was contained sequentially though Covid-19 provisions were Rs 1.1 billion taking the total Covid-19 reserve to Rs 1.37 billion (appropriation of profits).Average moratorium is 55% - though moratorium one to two saw a drop from approximately 65% to approximately 45%. We see return on assets/return on equity scale up to 2.2%/13.6% in FY22E.Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Centrum Broking: Sundaram Finance Logs In-Line Q1 Performance, Asset Quality Intact

Centrum Broking: Sundaram Finance Logs In-Line Q1 Performance, Asset Quality Intact

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