Sundaram Finance - Economic Revival To Lead Earnings Growth: Centrum Broking 
A customer counts Indian rupee banknotes. (Photographer Dhiraj Singh/Bloomberg)

Sundaram Finance - Economic Revival To Lead Earnings Growth: Centrum Broking 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. 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 ahead of estimates led by better net interest margin/fee income.

Net interest income at Rs 4.6 billion (estimate Rs 4.0 billion) was a beat driven by lower interest cost and gain on future value changes.

Even after adjusting the same NIM saw a YoY uptick from 4.7% to 5.1%. This NIM level may not be sustainable and NIM could contract since as the economy revives, medium and heavy commercial vehicle disbursals (lower yielding) would rise.

Business was strong with disbursals seeing an 8.5% YoY growth while repayments were Rs 36.5 billion.

Click on the attachment to read the full report:

Centrum Sundaram Finance - Q3FY21 Result Update .pdf

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