Sri S. Viji, Chairman of the company, addressed the shareholders on the performance of the company in financial year 2008.

• In the financial year 2007-08, the company’s total income rose by healthy 38% to Rs 924.12 crore. Its profit before tax and provisions grew by robust 52% to Rs 236.80 crore. However on accounting 159% growth in its higher provisions & write offs, its PBT before EO was restricted with growth of 42% to Rs 203.72 crore. It recorded EO income of Rs 99.18 crore representing sale of shares in Sundaram home finance in year ended Mar ’08 against nil in year ended Mar ’07. Thus it boosted the PBT after EO by significant 111% to Rs 302.90 crore. Though its tax provision spurted by 110% to Rs 90.35 crore on back of high profit base, its profit levels were high. Its net profit settled with 112% growth to Rs 212.54 crore. Excluding the EO income, its net profit grew by 35% to Rs 135.73 crore.
• Its average marketshare in the commercial vehicle (CV) industry is in range of 8% – 10% in financial year 2007-08. Its marketshare in light commercial vehicle (LCV) was 2.5% to 3% while in Medium & heavy commercial vehicle (M&HCV) was 10%. Its marketshare in passenger vehicle was 2.5%. With improvement in the LCV market, the company would be naturally focusing on the LCV market.
• The company’s networth crossed the Rs 1000 crore milestone in financial year 2007-08. It stood at Rs 1042.92 crore, up by 19% as on 31^st Mar ’08.
• Its consolidated gross profit rose by 80% to Rs 415.43 crore. Its consolidated net profit improved by 80% to Rs 252.16 crore.
• Its consolidated networth stood at Rs 1143.54 crore as on 31^st Mar ’08.
• The company declared final dividend of 50% for the financial year 2007-08. With inclusion of interim dividend of 100%, its total dividend for the financial year 2007-08 was 150% i.e. Rs 15 per equity share of Rs 10 face value.
• The company has declared bonus share in ratio of 1:1. It would be issued by capitalizing Rs 27.78 crore from securities premium account and general reserve.
• Its Capital Adequacy ratio is 14.20% as on 31^st Mar ’08. It is above the statutory requirement of 12%. The increase in statutory CRAR to 15% as per new RBI guideline for systemically important non deposit taking NBFCs is not applicable to Sundaram Finance.
• Its Gross NPA rose from 1.16% as on 31^st Mar ’07 to 1.18% as on 31^st Mar ’08.
• Its Net NPA is 0.49% as on 31^st Mar ’08 against 0.54% as on 31^st Mar ’07.
• With the addition of 202 new branches in financial year 2007-08, the total number of branches has increased to 426 as on 31^st Mar ’08. It plans to add another 100 branches in financial year 2008-09.
• In Oct ‘07, Union de Credit pour le Batiment SA (UCB), wholly owned subsidiary of BNP Paribas SA of France acquired 49.90% stake in Sundaram Home Finance. Post acquisition, the company’s name was re christened as Sundaram BNP Paribas Home Finance.
• On account of current scenario of increase in vehicle prices, rising fuel prices, reduced freight availability and high interest rates followed by inventory build ups and price discounting, the company expects the commercial vehicle sales to be affected and passenger vehicle sales to be low in financial year 2008-09.