Sakthi Finance Limited
Sakthi Finance Limited (SFL), incorporated in 1955, is a part of the Sakthi Group, which has a presence in sectors such as sugar, beverages, automobile and transport dealerships, auto components and textiles. It primarily finances CVs(88% ...
Key Metrics
EPS
2.43
Current ratio
1.60
Debt/Equity
5.52
Debt/EBITDA
44.05
Interest coverage ratio
-
Operating Cashflow to total debt
-0.02
Financials
Pros & Cons
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Here's what we like about this company and potential risks we have identified.
Pros
Established franchise and track record in regional market
Adequate capitalisation, considering medium-term growth plans
Cons
Regionally concentrated operations
Subdued profitability indicators, notwithstanding improvement in FY2024and Q1FY2025
Moderate asset quality
Diversification of funding mix critical for long-term growth plans
Liquidity position: Adequate
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About Sakthi Finance Limited bond.
This comprehensive profile covers key factual information about Sakthi Finance Limited. Sakthi Finance Limited (SFL), incorporated in 1955, is a part of the Sakthi Group, which has a presence in sectors such as sugar, beverages, automobile and transport dealerships, auto components and textiles. It primarily finances CVs(88% of the total portfolio as of June2024) with loans towards the purchase of cars, construction equipment and other machineryaccounting for the rest of the portfolio. SFL mainly operates in Tamil Nadu and Kerala, which together accounted for about 95% of the total portfolioas of June 2024. SFL reported a net profit of Rs. 15.7crore on a managed asset base of Rs. 1,400.5crore in FY2024compared to Rs. 12.5 crore and Rs. 1,275.9crore, respectively, in FY2023. As per the provisional financials for H1FY2025, the company reported a net profit of Rs. 7.5crore on a managed asset base of Rs. 1,421.7crore. EPS in Mar-2024 was 2.43. Current ratio in Mar-2024 was 1.60. Debt/Equity in Mar-2024 was 5.52. Debt/EBITDA in Mar-2024 was 44.05. Interest coverage ratio in Mar-2024 was . Operating Cashflow to total debt in Mar-2024 was -0.02. Total revenue for Mar-2025(E) was ₹217.04. Net income for Mar-2025(E) stood at ₹19.94. Total assets as of Mar-2024 were ₹1,424.96. Operating cash flow for Mar-2024 was ₹-27.99. The company’s borrowing relationships include State Bank of India (₹N/A Cr), Bank of India (₹N/A Cr), Central Bank of India (₹N/A Cr), Karnataka Bank Limited (₹N/A Cr), Indian Overseas Bank (₹N/A Cr), Karur Vysya Bank Limited (₹N/A Cr), (₹N/A Cr), State Bank of India (₹N/A Cr), SHRIRAM FINANCE LIMITED (₹N/A Cr), Karur Vysya Bank Limited (₹N/A Cr), (₹N/A Cr), Bank of India (₹N/A Cr), Central Bank of India (₹N/A Cr), Karur Vysya Bank Limited (₹N/A Cr), (₹N/A Cr), (₹N/A Cr). Peers and comparison entities consist of Sakthi Finance Limited, Bajaj Finance Limited, Jio Financial Services Limited, Cholamandalam Investment and Finance Company Limited. As of Dec 2024, promoters hold N/A% while others hold N/A% of equity. Key strengths include: Established franchise and track record in regional market ; Adequate capitalisation, considering medium-term growth plans; ; ; . Key risks include: Regionally concentrated operations; Subdued profitability indicators, notwithstanding improvement in FY2024and Q1FY2025; Moderate asset quality; Diversification of funding mix critical for long-term growth plans; Liquidity position: Adequate. Leadership team details include M. Balasubramaniam (Vice Chairman and Managing Director. He has a Master's Degree in Commerce from Madras University and a Master's Degree in Business Administration from Notre Dame University.), A. Selvakumar (Independent Non Executive Director), K. P. Ramakrishnan (Independent Non Executive Director), Priya Bhansali (Independent Non Executive Director), M. Manickam (Chairman (Non-Executive)), S. Veluswamy (Non-Executive & Non-Independent Director), Vijayaraghavan Madabusi Krishaswamy (Chief Financial Officer), Sri C Subramaniam (Chief Financial Officer). This detailed corporate overview is structured to provide a thorough understanding of all available data points, enhance search visibility, and support investor analysis.