Choice International Limited · NSE:CHOICEIN
Choice International — Q1 FY24 Earnings Presentation
41 slides from Choice International's earnings presentation, Jul 17, 2023
Slide 1: Cover letter to exchanges: Investor Presentation
Choice The Joy of Earn ng REF: Cll/CC/36/2023-24 July 17, 2023 To, To, The Department of Corporate Services, The Department of Corporate Services, The SSE limited, The NSE limited P. J. Towers, 5th Floor, Exchange Plaza Dalal Street, Plot No. C/ 1, G Block, Mumbai- 400 001 Sandra- Kurla Complex, San
Slide 2: Connecting People to Prosperity - Q1 FY24 Earnings Presentation
ChoiceThe Joy of Earning Connecting PEOPLE • to PROSPERITY Choice International Ltd. (BSE: 531358, NSE: CHOICEIN) Ql FY24 Earnings Presentation ==================~~ © Choice International Ltd.
Slide 3: Company Overview
Choice The Joy of Eoming Company Overview One of the leading financial conglomerates with over a decade's expertise providing tech-led services Ranked 5th amongst Strong Research Desk MSME focused lending Preferred advisor for PAN India Presence Fintech ecosystem top full service for both Institutio
Slide 4: Key Highlights
Choice The Joy of Eoming Key Highlights A diversified mix for sustainable business Broking & Distribution Stock Broking, Mutual Funds ••• • •• NBFC £ 29% •• £ 29% .., 67x ••••••••• • fiT[ • • ••••••••• Rs. 4.15 Bn Rs.1A84 Mn 721K 207K+ •• • 13% •• • Demat Accounts Active Accounts Total Loan Book Ret
Slide 5: Q1 FY24 Highlights
Choice The Joy of Eaming Qi FY24 Highlights | Revenue (Rs. Mn) | ] EBITDA (Rs. Mn) ] A14% 474 | 376 263 iy 74 1395 1393 | | QIFY23. Q2FY23. Q3FY23 Q4FY23 GIFY24 es | PAT (Rs. Mn) ] 787 785 AM77™% 303 213 139 7 82 | | i | QIFY23 Q2 FY23 Q3 FY23 Q4 FY23 QIFY24 A77/% QIFY23 Q2FY23. G3FY23 Q4FY23 QIFY24
Slide 6: Q1 FY24 Highlights - Segment Revenue and PBT
Choice The Joy of Earning Ql FY24 Highlights I Segment Revenue (Rs. Mn) I I Segment PBT (Rs. Mn) I 18 138 QlFY23 Q2FY23 Q3FY23 Q4 FY23 Ql FY24 • Broking Services Advisory Services • NBFC Services Excludes: Excludes: • Unallocable revenue: 04FY23 - 42. QlFY24 - 42 · Other Unallocable expenditure net
Slide 7: StockBroking - Industry Overview
StockBroking - Industry Overview I ADTO (Rs. Lacs Crores) I Feb-23 209 Growing Industry ADTO with Dec-22 increasing share Sep-22 from semi-urban Jun-22 geographies and FY22 steady growth of FY21 retail participation Beneficial for Choice, being industry leader with: • Enhanced Revenue Streams throug
Slide 8: StockBroking
Choice The Joy of Earning StockBroking Expanding our PAN India reach and client demographic Increased penetration in unserved & I Steadily increasing client base I I underserved locations I 7% Geographical Distribution of Clients .. 204% • Tierl • Tier ll • Tierlll & Below Majority young clients wit
Slide 9: StockBroking
ChoiceThe JCfl/ of Earning StockBroking Expanding our PAN India reach and client demographic Rmlk amongst full service I Consistently growing Market Share & ADTO (Rs. Mn) II Broking & Distribution Segment Revenue (Rs. Mn) has peaked braking firms" I 0.41% A. 72% r------------------------------------
Slide 10: StockBroking - ChoiceFinX
Choice The JCfl/ of Earning StockBroking Expanding our PAN India reach and client demographic ChoiceFinX One Customer, One Platform- Financial Services Super App 44,819.30 154 2 Simple User Interface ETF, A tone~ te'rn lnvHtment ttratoov tobutldWNith . J overt..,... ~~ for you P Research Invest .n y
Slide 11: StockBroking
Choice The Joy of Earning StockBroking Simple User Interface, Research, In-app Curated Baskets, Diverse Investment Products Implemented "Trade from Chart" feature. streamlining trading process ---------------------------------------------------------------~ I I NIFTY 50 19,564.50 (0.78 %) BANKNIFTY
Slide 12: StockBroking
Choice The Joy of Earning StockBroking Simple User Interface, Research, In-app Curated Baskets, Diverse Investment Products NIFTY N < Spread Strategies < Scalping < Option Strategies < 19,441.85 2•!>(001 ::::: Q. Maximise Your Returns Optio n Strategy ~ 27JUL23 FUT < Back 19,441.85 19,495.00 245{0.0
Slide 13: StockBroking - Allied Products
Choice The Joy of Earning StockBroking- Allied Products Maximizing growth of portfolio with a mix of products I Sustained Growth in Mutual Fund AUM I I Progressive increase in SIP Book I .& 28% .& 53% 4,054 52 Ql FY23 Q2 FY23 Q3 FY23 Q4 FY23 Ql FY24 Ql FY23 Q2 FY23 Q3 FY23 Q4 FY23 Ql FY24 • AUM (Rs.
Slide 14: StockBroking - Allied Products
ChoiceThe JCfl/ of Earning StockBroking- Allied Products Maximizing growth of portfolio with a mix of products I Folios expanded as investor participation surged I I Promising upward trend in clients I Key Technology upgradations • 24% • 24% 84 Implemented Assisted Order 302 Flow to empower RMs and
Slide 15: Insurance - Industry Overview
Insurance - Industry Overview I Insurance Density (US$) 8,565 I Long Term Goal Insurance Premium • Premium per capita - India Density is increasing • World Average - driven by Insurance OECD countries Brokers contribution 3.600 Medium Term yet a long way to Goal go compared to Global Average and Lea
Slide 16: Insurance - Industry Overview: Key Growth Factors
Insurance -Industry Overview Key Growth Factors in the sector @---·- Myriad of Initiatives IRDAI has also undertaken various initiatives towards boosting the insurance penetration, such as permitting insurers to conduct video-based KYC, launching standardized insurance products and allowing insurers
Slide 17: Insurance Distribution
Choice The Jaf of Eaming Insurance Distribution Tapping into new territories, Propelled by surge of marquee clients I Exponential Growth in Insurance Premium II Enroute Mass Coverage I 75K+ Lives Covered ~ 186% ~ 106% Claim >95% Settlement Ratio 338 8,008 Reduction in Claim 14% Settlement TAT Prefer
Slide 18: Insurance Distribution
Choice The Joy of Earning Insurance Distribution Tapping into new territories, Propelled by surge of marquee clients Technology Upgradations I Significant boost in employee productivity I Know Your Policy Ql FY24 3.76 To identify errors or inconsistencies in their insurance policy documents Q4 FY23
Slide 19: NBFC - Industry Overview
NBFC - Industry Overview I Banks Vs NBFCs- YoY growth in Advances I NBFCs showing strong out-performance Banks despite multiple regulatory and economic changes 40 r------------1 ,---------- ri);;~~;ti;"tio-;,: ~---ll.aFs~--l -o~s;t"~f" ---Gl~b;l--l :Global Financial : : Taper I 33~ Crisis : : Tantru
Slide 20: NBFC
Choice The Joy of Eoi'!Wig NBFC Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes I Total Loan Book I I Retail Loan Book I Rs. 4,152 Mn Rs. 1,484 Mn Our Offerings I<ey c; MSME Business Loan d Commercial Vehicle Finance Competencies First pr
Slide 21: NBFC
Choice The Joy of Earning NBFC Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes I Growing Net Interest Margin I I Focused Retail Portfolio Mix I .A. Expanded by 392 bps Rs. 1,484 Mn. 9.51% 29.06% 6.94% 6.00% 6.09% 61.28% Ql FY23 Q2 FY23 Q3
Slide 22: NBFC - Robust Underwriting Processes
Choice The Joy of Earning NBFC Robust Underwriting Processes Real-time Credit Multiple Centralized Geo-tagging Cashless Bureau checks Database Checks Credit Team Operations of 100% branches In addition to Dedupe Check on KYC verification. IVR. via penny drop and centers and own Credit Bureau more th
Slide 23: NBFC - Product Offering
Choice The Joy of Eoming NBFC Wide range of product offering to cater multiple customer segments in priority sector Products Name Business Loans Business Loans Supply Chain Vehicle Loans Solar Loan (Unsecured) (Secured) Finance Ticket Size Upto Rs. 750K Upto Rs. 5 Mn Upto Rs. 10 Mn Upto Rs. 2.5 Mn U
Slide 24: Advisory Services - Industry Overview
Advisory Services- Industry Overview '' Infrastructure is much more than cement and concrete. Infrastructure guarantees a better I Road construction per day (Kms) I future. Infrastructure connects people. Shri. Narendra Modi Hon'ble Prime Minister of India FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Nat
Slide 25: Advisory Services
Choice The Joy of Earning Advisory Services Government Infrastructure Consulting, Government Advisory, Investment Banking I Order Book (Rs. Bn} I I Statewise - Order Book I JJ.. 79% 1% • Maharashtra 5.27 • Rajasthan • West Bengal 32% • Others* *Chhattisgarh Goa Jharkhand Madhya Pradesh Odissa 01 FY2
Slide 26: Advisory Services - Govt. Infrastructure Consulting
Choice Tne Jov of Eoming Advisory Services - Govt. Infrastructure Consulting Feasibility assessment, detailed project report, project management & monitoring services Proprietary platform for realtime monitoring and to ensure timely completion of projects 3 States ...... 100+ Districts 350+ Talukas
Slide 27: Advisory Services - Govt. Advisory
Choice The Joy of Earning Advisory Services - Govt. Advisory Association with over 500 Urban Local Bodies, 25 State Departments and 1o,ooo+ Panchayati Raj institutions. National Family Health Survey VI: In-depth Public Health Survey- 26K+ households. • Diverse talent pool of lK+ professionals includ
Slide 28: Advisory Services - Key Clientele
Choice The Joy of Eaming Advisory Services - Key Clientele Niti Aayog ;;frfcl Jllllt;r __ Exhllri .... • Border Aoad , . Org~ n 15-iitlon ~~~~~~-"'-- _,., p~ metrof :J - BSNL ~·~ ~...- ~FUTURE ~ - '+ ~·I '-"~~ li!Bt §~~~~~R~~ ! ' - ~ I ___ ..,._ ~AWATI TRANSAM _, Gin I ~ JOnY ~GENEIIALI P tCICI I'Rl
Slide 29: Choice Connect
Choice The Joy of Earning Choice Connect To enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services I No. of Choice Business Associates (CBAs) I 90+ CBA Trainings Conducted during the 6K+ CBAs received .6. 3lx Pa
Slide 30: Choice Connect
Choice The Joy of Ecming Choice Connect To enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services ~-- Helping Agents - -..... Focus on CBA Experience • Web. Andriod and iOS platform CBA Onboarding to work from a
Slide 31: Way Forward
Choice The Joy of Earning Way Forward Focus on MSME Lending Lending platform with average ticket size of < Rs.l Mn Newer demographies ------------------------------------------------------------------ Targeting Tier Ill & below cities in India by leveraging our CBA network & scaling our branches Ele
Slide 32: Consolidated Financial Performance - Quarterly
ChoiceThe Joy of Eoming Consolidated Financial Performance - Quarterly ' ~-----------------~ Particulars (Rs. Lakhs) Q1 FY24 Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Revenue from Operations 13,750 13,593 9,634 7,587 7,693 Other Income 176 361 209 262 178 Total Income 13,926 13,954 9,843 7,849 7,871 Employee
Slide 33: Consolidated Financial Performance - Quarterly
Choice The Joy of Eoming Consolidated Financial Performance - Quarterly ~-----------------~ Particulars (Rs. Lakhs) Ql FY24 Ql FY23 Y-o-Y Q4 FY23 Q-o-Q Growth(%) Growth(%) Revenue from Operations 13,750 7,693 79% 13,593 1% Other Income 176 178 (1%) 361 (51%) Total Income 13,926 7,871 n% 13,954 0% EB
Slide 34: Board Members
Choice The Joy of Earning Board Members Board with extensive experience across businesses Investment Finance Securities CSR - --- -- - -- Audit Stakeholder Nomination & Rights Issue Risk Management Committee Committee Committee Committee Committee Relationship Remuneration Committee Committee Commit
Slide 35: Current Entity Structure
Choice The Joy of Eoming Current Entity Structure CHOICE IN I I I Choice Equity 94.8% Choice Capital I Choice Consultancy I Choice Insurance Broking Advisors Services Broking I I 100% 100% 100% 50% 3.25% Choice Finserv Choice Choice Corporate Choice Choice Choice Shreeyam Wealth Services Portfolio C
Slide 36: Environmental, Social and Governance
Choice The Joy of Eoming Environmental, Social and Governance Well-established 0 Financial services business. Implementing anti-bribery management system. Adopting policies to mitigate the company's carbon emissions and to reduce overall energy usage and waste management. 0 Providing and Disclosure
Slide 37: Geographical Presence
Choice The JCN of Eamng Geographical Presence Mumbai - (Head off~eel Agra Chittorgam Jamshedpur Mumbai - Marol Salem Ahmedabad - 1 Coimbotore Jhalawar Mysore Secunderabad Ahmedabad - 2 Daman Jhunjhunu - 1 Nagpur Sikar -1 Ahmedabad - 3 Dehradun Jhunjhunu - 2 Neemuch Sikar- 2 Ahmednagar Dhanbad Jodhpu
Slide 38: Media Presence
Media Presence Extensive coverage by Television, Digital, Print and Social Media News and Print Mecia CNIIC TV,a [jjmJt:]IJ~ Busi i1css I j nc If£ , CNBC live lnt 61-...'2. ~ THE Tl)li::SOf 1:\0l.\ Iff. CNBC Bloomberg PR.bfrr ThePrint ~ ~ TH E:D:o~mi iC TI)I E Business Standard FT FINANCIAL moneycon
Slide 39: Memberships and Certifications
ChoiceThe JCfl/ of Earning Memberships and Certifications Registered across exchanges in India Memberships And Registrations Certifications Auditors INSE 3SE """""""'THEO>EW M CX M ETAL a EN ERGY Tr•d• with Trust MS KA & Associates Chartered Accountants • <.i NCDEX §) Jl~ lllfCa!D • A Member finn of
Slide 40: Disclaimer
Choice The Joy of Ecming Disclaimer Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Th
Slide 41: Thank you
"Thank you V