Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Q3 FY2021 Earnings Presentation
84 slides from Cholamandalam Investment And Finance's earnings presentation, Jan 29, 2021
Slide 1: Exchange intimation letter on board meeting outcome
January 29, 2021 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Trade World, 4th Floor, Kamala Mills Compound 1st Floor, P.J. Towers Senapati Bapat Marg, Lower Parel, Dalal Street, Fort, Mumbai 400 013 Mumbai 400 001 NSE SCRIP CODE: CHOLAFIN EQ BSE SCRIP CODE: 511243 N
Slide 2: Interim dividend and analyst call schedule
‐ The detailed format of the unaudited financial results being submitted as per the listing regulations. The said results will be uploaded on the stock exchange website. The financial results will also be published as per the format prescribed in the listing regulations; ‐ Limited Review report from
Slide 3: Corporate Presentation - December 2020
CORPORATE PRESENTATION - DECEMBER 2020
Slide 4: Table of Contents
Table of Contents 1. Group overview 2. Corporate 3. Financial 4. Business overview performance segments' overview 5. Funding profile 6. Subsidiaries 7. Risk performance management 2
Slide 5: Murugappa Group Overview
Murugappa Group Overview 3
Slide 6: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 120 Years of $5.06 $8.34 Turnover cap (as on Years Existence B B (FY20) 30th Jun 2020) Listed 3 Sectors 28 Businesses 9 Companies 19 Geographical 90+ Manufacturing 51,000+ Work force Countries Presence Locations Locations 4
Slide 7: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 29,958 23,181 41,845 Turnover (Cr.) 17,058 7,704 13,249 PAT(Cr.) 1,022 572 1,291 Market Cap(Cr.) 23,869 6,089 7,677 15,504 31,791 NA 10,054 Turnover (Cr.) 13,091 3,967 2,569 4,520 8,713 4,398 91 PAT(C
Slide 8: Corporate Overview
Corporate Overview 6
Slide 9: Spirit of Murugappa
SPIRIT OF MURUGAPPA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 7
Slide 10: Cholamandalam Investment & Finance Company Limited
Cholamandalam Investment & Finance Company Limited 16 lakh + customers 25,795 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 16 lakh plus customers till date 200 plus employees in year 2000 to 25,700+ employees today Rs.
Slide 11: Our journey so far
Our journey so far FY 2020-21 FY 2015-20 2016 2020 • Adopted GNPA recognition at • Total AUM crossed FY 2010-15 120 days ₹75k Cr. • Total AUM • Increased branch crossed ₹30K Cr. network to 1135. • New LEAP LOS Digital platform • Loan Against Property 2011 • LMS v3.12 platform upgrade platform digiti
Slide 12: ESG Certification – FTSE Russell
ESG Certification – FTSE Russell Our Company has been included in the FTSE4Good Index Series, created by the global index and data provider FTSE Russell. The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) pra
Slide 13: Shareholding
Shareholding Shareholding Pattern Institutional Holders (More than 1%) Top Domestic Institutional Holding • HDFC Mutual Fund • Axis Mutual Fund • SBI Mutual Fund • Birla Sun Life Mutual Fund • DSP Mutual Fund Top Foreign Institutional Holding • Vanguard • Government of Singapore (GIC) o Promoters’ s
Slide 14: Business Profile and AUM as on 31st Dec 2020
Business Profile and AUM as on 31st Dec 2020 Business AUM Rs. 68,745Cr Vehicle Finance LAP & SME Home Loan Rs. 49,936Cr Rs. 14,877Cr Rs. 3,932Cr 73% 22% 5% BT 5% Resale 12% Used Vehicles 27% HCV 10% Top-Up 1% Self- Construction Tractor 10% 48% LCV 20% CE 6% Purchase - New 34% 3 Whlr 1% 2 Whlr 4% Car
Slide 15: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (5) Punjab (23) 1135 Himachal Pradesh (17) 1132 Chandigarh (2) Uttarakhand (16) 1098 Haryana (32) 1091 Delhi (5) Sikkim (1) Rajasthan (83) UP (72) Assam (25) FY20 Q1FY21 Q2FY21 Q3FY21 Meghalaya (3) Bihar (43) Gujarat Mizoram (1) Madhya Pradesh (65) (80) T
Slide 16: Financial Performance
Financial Performance ity! if 601,01
Slide 17: Financial Snapshot — 10 Years
Financial Snapshot —10 Years FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 CAGR CAGR Financials Snapshot YoY (10 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS (5 years) years) Disbursem ents 5,731 8,889 12,118 13,114 12,808 16,380 18,591 25,114 30,451 29,091 -4% 15% 20% A ssets u n
Slide 18: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) -23% * 23,429 1,234 3,510 5% 5% 5% 6% 5% 5% 5% 6% * 17,972 5% 14% 16% 15% 15% 16% 1,004 20% 18% 2,871 -13% 6% * 8,572 90% * 7,381 18,685 420 * 7,475 * 7,926 81% 80% 80% 78% * 6,457 79% 74% 77% 1,212 414 434 400 14,096 1,171 381 1,126 1,408 1,296 *
Slide 19: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) 13% 13% * 68,745 * 67,182 * 63,501 3,932 4% 4% 5% 5% 3,630 * 60,778 5% 5% * 57,494 3,302 * 59,292 2,591 2,911 2,240 14,288 14,877 21% 21% 22% 22% 22% 22% 13,371 12,799 13,278 12,277 46,828 49,264
Slide 20: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 26% 33% 33% *9,409 1272 *8,987 *8,759 164 164 164 1010 *7,053 *6,642 *6,747 164 156 164 9,245 8,595 8,823 41% 5% 6,583 6,889 6,486 431 432 409 389 314 307 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD YTD Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q
Slide 21: Asset Ratios
Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.8% 7.3% 7.1% 7.0% 6.8% 2.7% 2.6% 6.1% 2.2% 2.1% 2.1% 2.1% Q1FY21 Q2FY21 Q3FY20 Q3FY21 YTD YTD Q1FY21 Q2FY21 Q3FY20 Q3FY21 YTD YTD Dec19 Dec20 Dec19 Dec20 Loan Losses & Provisions (%) ROA - PBT (%) 2.5% 3.6% 1.8% 1.6% 3.4% 1.4% 3.4% 3.4% 3.4% 0.
Slide 22: Shareholders’ Returns Ratios
Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 22.4% 20.0% 20.6% 19.5% 21.1 21.0 20.6 18.5% 17.6% 17.2 16.2 15.9 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 P/E Ratio P/BV Ratio 19.7 18.8 17.7 17.8 21.1 21.0 20.6 17.2 16.2 15.9 11.9 9
Slide 23: Profit and Loss Statement (As per IND AS)
Profit and Loss Statement (As per IND AS) ₹ Cr Growth Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD Dec19 YTD Dec20 % (YTD) Q3-o-Q3 Y-o-Y Disbursements 8,572 3,589 7,381 6,457 7,475 7,926 6% 23,429 17,972 -23% Closing Assets 62,827 70,826 64,409 74,471 65,992 75,813 15% 65,992 7
Slide 24: Balance Sheet (As per IND AS)
Balance Sheet (As per IND AS) ₹ Cr Particulars Dec-19 Mar-20 Dec-20 ASSETS Financial Assets 62,061 63,021 71,510 Cash and Bank balance 5,430 6,959 5,000 Derivative financial instruments 70 114 26 Receivables 53 59 78 Loans 56,038 55,403 64,196 Investments 73 73 1,628 Other Financial Assets 397 413 5
Slide 25: Stagewise Assets & Provision Summary
Stagewise Assets & Provision Summary ₹ Cr As per Supreme Court Ruling without considering Roll forwards Dec-19 Mar-20 Mar-20 Mar-20 Dec-20 Dec-20 Dec-20 Dec-19 Mar-20 Mar-20 Mar-20 Dec-20 Dec-20 Dec-20 Particulars Normal Normal Covid Total Normal Covid Total Normal Normal Covid Total Normal Covid To
Slide 26: Stagewise Assets & Provision Summary
Stagewise Assets & Provision Summary ₹ Cr Roll forward considered Dec-19 Mar-20 Mar-20 Mar-20 Dec-20 Dec-20 Dec-20 Dec-19 Mar-20 Mar-20 Mar-20 Dec-20 Dec-20 Dec-20 Particulars Normal Normal Covid Total Normal Covid Total Normal Normal Covid Total Normal Covid Total INR Cr INR Cr INR Cr INR Cr INR Cr
Slide 27: ECL Stagewise Summary
ECL Stagewise Summary ₹ Cr Stage wise Summary - Dec 20 - After considering Roll forwards Normal Total Total Normal Total Total Particulars Asset Provn Addn Provn Provn Asset Provn Addn Provn Provn Rs in Cr Rs in Cr Rs in Cr Rs in Cr % PCR (%) PCR (%) PCR (%) Stage 1 58,308 173 - 173 88.02% 0.30% 0.3
Slide 28: Business Overview
Business Overview 26
Slide 29: Vehicle Finance
Vehicle Finance
Slide 30: Vehicle Finance: YTD Dec20 Performance
Vehicle Finance: YTD Dec20 Performance • Disbursements has declined by 25% in YTD Dec20 as compared to Disbursements YTD Dec19. Assets under management • Assets have grown by 12% as compared to YTD Dec19. Loss and • Loan losses is at 2% in YTD Dec20 as compared to 1% in YTD Dec19 provisions Profit b
Slide 31: Sector outlook – Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position • A faster recovery of the Rural sector and a good Rabi • Chola intends to maintain a strong focus on financing of harvest has supported tractor demand. The tractor tractors given the positive industry trends. More than
Slide 32: Sector outlook – Vehicle Finance business (2/2)
Sector outlook – Vehicle Finance business (2/2) Sector Outlook Chola’s Position • Passenger vehicles (Car & MUV) has witnessed better • Our focus is predominantly on retail customers mainly in than expected recovery in Q2 & Q3 driven by demand in smaller towns and rural market. Our exposure to tour
Slide 33: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola @ -42% (in Units) (in Units) CAGR @ 5% 66,358 -10% 64,254 Chola @ -14% 57,741 58,747 CAGR @ 5% 52,862 1,21,925 1,06,964 97,398 1,00,308 93,205 Q3 FY'18 Q3 FY'19 Q3 FY'20 Q3 FY'21 Q3 FY'25 (E) Q3 FY'18 Q3 FY'19 Q3 FY'
Slide 34: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) 76,156 CAGR @ 10% CAGR @ 7% 66,985 Chola @ -25% 59,422 Chola @-15% 11,76,040 9% 8,97,195 40,586 7,88,862 37,186 7,84,612 7,86,477 Q3 FY'18 Q3 FY'19 Q3 FY'20 Q3 FY'21 Q3 FY'25 (E) Q3 FY'18 Q3 FY'
Slide 35: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning CV PV Low Industry Low Low Industry Low Chola Position Chola Position Principal Operator Salaried > 50 Vehicles Large Operators 26- 50 vehicles HCV Self Employed with Returns Returns Financials RISK RISK Medium Operators 10 -25 – HCV & LCV vehicles Taxi a
Slide 36: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning Tractor CE Low Industry Low Low Industry Low Chola Position Super Strategic Chola Position Large Farmer Strategic Customer Captive Users / Prior Vehicles Captive Users/Prior Vehicles Returns Returns Medium Retail operator RISK RISK Medium Farmers Small Re
Slide 37: Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec20
Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec20 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala 6% 5% Kerala 6% 5% 6% 5% Puducherry Gujarat 8% 10% Puducherry 5% Telangana 5% Gujarat Goa Telang
Slide 38: Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec20
Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec20 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise HCV 2% 3 Wheeler 3 Wheeler HCV CE CE 1% 1% 10% 6% LCV 7% 2 Wheeler 15% 2 Wheeler 4% 7% LCV MUV 20% 6% CAR Used Vehicles 10% 27% Used Vehicles M
Slide 39: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 6,084 * 5,949 Medium Yield Low Yield 269 383 5% 5% 6% 9% 8% 177 164 3% 5% 3% 1% 2% * 4,703 * 4,781 944 1,017 17% 12% 16% 16% 21% 258 363 5% 230 92 321 6% 5% 411 6% 777 567 6% 9% 9% 6
Slide 40: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 49,264 * 49,936 5% 5% 5% 6% 6% 46,828 * 44,589 2,718 2,882 13% 13% 12% 11% 10% * 44,206 2,485 Medium Yield Low Yield 2,183 5,453 5,041 2,220 5,585 6,043 5,603 21% 21% 20% 21% 21% 10,317 10,20
Slide 41: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) -37% 18,685 12% 12% *49,264 * 49,936 *46,828 1,692 1,910 *43,901 * 44,589 48,244 *42,977 2,054 47,354 830 1,479 44,775 14,096 42,977 43,071 43,109 -53% 2% -18% 6,940 5,796 5,949 6,084 4,781 3
Slide 42: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 5,493 1,108 4,882 932 8% 440 1,885 1,922 1,686 1,684 359 1,561 1,637 319 318 295 309 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD YTD Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD YTD Dec19 Dec20 Dec19 Dec20 40
Slide 43: Vehicle Finance - Asset Ratios
Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 8.0% 3.1% 3.0% 7.7% 7.5% 2.5% 2.5% 2.5% 2.5% 7.0% 7.0% 6.8% Q1FY21 Q2FY21 Q3FY20 Q3FY21 YTD YTD Q1FY21 Q2FY21 Q3FY20 Q3FY21 YTD YTD Dec19 Dec20 Dec19 Dec20 Loan Losses & Provisions (%) ROA - PBT (%) 3.0% 3.9% 3.1% 3.0% 2.9% 2.7%
Slide 44: Profit and Loss Statement - Vehicle Finance (Managed)
Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD Dec19 YTD Dec20 % (YTD) Q3-o-Q3 Y-o-Y Disbursements 6,940 3,231 5,796 4,781 5,949 6,084 2% 18,685 14,096 -25% Closing Assets 42,977 46,828 43,901 49,264 44,589 49,936
Slide 45: Profit and Loss Statement - Vehicle Finance (On Book)
Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD Dec19 YTD Dec20 (YTD) Q3-o-Q3 Y-o-Y Disbursements 6,940 3,231 5,796 4,781 5,949 6,084 2% 18,685 14,096 -25% Closing Assets (On 42,977 44,775 43,071 47,354 43,109 48,
Slide 46: Loan Against Property
Loan Against Property
Slide 47: Loan Against Property - YTD Dec20 Performance
Loan Against Property - YTD Dec20 Performance • Disbursements has declined by 21% in YTD Dec20 as compared to Disbursements YTD Dec19. Asset under • The business has grown the assets by 11% in YTD Dec20. management Loss and provisions • Loan losses is at 0.9% as compared to -0.04% of YTD Dec19. Prof
Slide 48: Loan Against Property - Industry outlook
Loan Against Property - Industry outlook Sector Outlook Chola’s Position • As per CRISIL “With the pick-up in economic activity, • With revival of MSME business activities pan-India, MSMEs have started with their businesses, leading to disbursements are expected to increase in Q4. increasing collect
Slide 49: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) -21% 11% 3,073 10% * 14,457 * 13,866 * 13,109 * 12,612 * 13,000 2,218 * 12,119 2,351 2,436 2,427 2,560 1,991 2,282 39% -1% 12,239 1,265 11,516 1,101 10,129 10,683 10,331 10,439 1,064 90
Slide 50: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 10% -8% 1,208 259 1,102 238 12% -1% 9% 399 423 86 88 88 87 386 368 380 84 354 65 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD YTD Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD YTD Dec19 Dec20 Dec19 Dec20 48
Slide 51: Loan Against Property – Asset Ratios
Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 4.4% 1.2% 1.1% 4.1% 0.9% 0.9% 0.8% 0.9% 3.9% 3.9% 3.9% 3.9% Q1FY21 Q2FY21 Q3FY20 Q3FY21 YTD YTD Q1FY21 Q2FY21 Q3FY20 Q3FY21 YTD YTD Dec19 Dec20 Dec19 Dec20 Loan Losses & Provisions (%) ROA - PBT (%) 1.1% 2.7% 2.8% 2.6% 2.4
Slide 52: Profit and Loss Statement - Loan Against Property (Managed)
Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD Dec19 YTD Dec20 % (YTD) Q3-o-Q3 Y-o-Y Disbursements 1,101 119 1,064 1,052 908 1,265 39% 3,073 2,436 -21% Closing Assets 12,119 13,109 12,612 13,866 13,000 14,457
Slide 53: Profit and Loss Statement - Loan Against Property (On Book)
Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD Dec19 YTD Dec20 (YTD) Q3-o-Q3 Y-o-Y Disbursements 1,101 119 1,064 1,052 908 1,265 39% 3,073 2,436 -21% Closing Assets (On B/S) 10,129 10,683 10,331 11,516 10,4
Slide 54: Home Loans
Home Loans )
Slide 55: Home Loans - YTD Dec20 Performance
Home Loans - YTD Dec20 Performance • Disbursements has declined by 19% in YTD Dec20 as compared to Disbursements YTD Dec19. Asset under • The business has grown the assets by 35% in YTD Dec20. management Loss and provisions • Loan losses at 1.4% as compared to 0.5% of YTD Dec19. Profit before tax •
Slide 56: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position Immediate term: • Chola does not have Construction Finance exposure • Demand continues to be subdued with customers • Chola does not have material under construction postponing investment decisions exposure to developer supplied houses •
Slide 57: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) -19% 643 668 688 3,288 2,962 713 2,613 489 236 2,198 1,234 2,004 2,102 -8% 8% 1,004 -55% 420 414 381 400 434 190 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD YTD Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY2
Slide 58: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 45% 46% 78 54 367 46% 39% 53% 47% 253 121% 1% 28 29 22 22 20 124 132 111 95 72 85 13 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD YTD Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD YTD Dec19 Dec20 Dec19 Dec20 56
Slide 59: Home Loans – Asset Ratios
Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 2.7% 2.7% 7.0% 6.7% 6.6% 2.4% 2.4% 6.2% 6.1% 6.2% 2.2% 1.9% Q1FY21 Q2FY21 Q3FY20Q3FY21 YTD YTD Q1FY21 Q2FY21 Q3FY20 Q3FY21 YTD YTD Dec19 Dec20 Dec19 Dec20 Loan Losses & Provisions (%) ROA - PBT (%) 3.5% 3.3% 3.1% 3.0% 3.0% 2.3% 2.8%
Slide 60: Profit and Loss Statement - Home Loans (Managed)
Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD Dec19 YTD Dec20 % (YTD) Q3-o-Q3 Y-o-Y Disbursements 420 190 414 381 400 434 8% 1,234 1,004 -19% Closing Assets 2,240 3,302 2,591 3,630 2,911 3,932 35% 2,911 3,932 35% Opera
Slide 61: Profit and Loss Statement - Home Loans (On Book)
Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 YTD Dec19 YTD Dec20 (YTD) Q3-o-Q3 Y-o-Y Disbursements 420 190 414 381 400 434 14% 1,234 1,004 -19% Closing Assets (On B/S) 2,004 2,613 2,102 2,962 2,198 3,288 11% 2,198 3,288
Slide 62: Funding Profile
Funding Profile 60
Slide 63: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 20.42 19.50 18.36 19.25 17.36 5.41 4.66 4.65 3.84 5.12 4.92 13.24 15.28 15.76 14.85 15.41 12.44 FY18 FY19 FY20 Q1FY21 Q2FY21 Q3FY21 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Lo
Slide 64: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) 120% Borrowing mix by instrument type (₹Cr) * 54,941 * 55,005 * 58,513 * 60,578 * 62,047 100% 3% 6% 7% 7% 3% 7% 3% 3% 3% 2% 8% 7% 6% 9% 7% 5% 6% 80% 3% 4% 6% 5% 2% 3% 2% 3% 10% 10% 11% 13% 12% 60% 40% 60% 58% 54% 57% 57% 20% 7% 8% 7% 7% 7% 0% Q3FY20 Q4FY20 Q1FY2
Slide 65: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 54,941 * 55,005 * 58,513 * 60,578 * 62,047 100% * 62,000 9% 8% 7% 7% 6% 1% 2% 2% 90% 2% 2% 3% * 61,000 3% 3% 3% 4% 6% 4% 4% 6% 4% 80% * 60,000 70% * 59,000 60% * 58,000 50% 65% 67% 65% * 57,000 68% 66% 40% * 56,000 30% * 55
Slide 66: ALM Statement as of 31st Dec 2020 (As per IND AS)
ALM Statement as of 31st Dec 2020 (As per IND AS) (₹Cr) ALM snapshot as on 31st Dec 2020 Particulars 1m >1 to 2m >2 to 3m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 yr Total Cash & Bank Balances 1,812.57 909.14 1,655.12 1,516.03 335.00 - - - 6,227.87 Advances 1,704.81 1,635.45 1,840.56 6,719.54 1
Slide 67: Subsidiaries
Subsidiaries 65
Slide 68: Subsidiaries – YTD Dec20
Subsidiaries – YTD Dec20 •CHFL recorded a gross income of Rs. 26.33 crores as on 31st Dec, •During the quarter CSEC focused on creating three distinct 2020 as compared to Rs. 29.91 crores in YTD Dec19 and PBT of business lines for enhancing revenues and productivity - broking, Rs.1.84 crores as agai
Slide 69: Risk Management
Risk Management 67
Slide 70: Risk Governance Structure
Risk Governance Structure Oversee the entire risk Board of Directors management process Formed in Oct 2007,operational Risk Management from 2008 Committee Meet four times in a year Reviews framework & process, periodic monitoring of exposures Review of other initiatives with a Chief Risk O
Slide 71: ERM as Value Centre in Corporate Processes
ERM as Value Centre in Corporate Processes • ERM at Chola works as a value centre • Risk management team engages in defining framework, overseeing enterprise wide risks and building a portfolio for risk appetite based decision making. • At Chola risk management is an integral part of the existing bu
Slide 72: ERM as Value Centre in Business Processes
ERM as Value Centre in Business Processes • Risk registers for various business process to identify laundry list of risks, controls, residual risks and KRIs for monitoring • ERM works with business teams on the overall customer life cycle management Active portfolio Identifying segments & management
Slide 73: ERM as Value Centre in Strategic Functions
ERM as Value Centre in Strategic Functions • Actively involved in giving strategic inputs for scenario building • Active participant in Asset Liability support group which monitors company’s liquidity position • Building forward looking macro indicators and its impact on business metrics • Involved
Slide 74: Information Technology
Information Technology 72
Slide 75: Technology Updates
Technology Updates Technology Updates Technology Infrastructure Application Platform Delivering resilient & scalable environment Stable foundation for core products & services Continuous review of connectivity infrastructure & Stabilization of LAP business technology platform on new digital band
Slide 76: COVID Updates
COVID Updates 74
Slide 77: Update on COVID test employees – as on 22nd Jan 2020
Update on COVID test employees – as on 22nd Jan 2020 Around 10% of the CHOLA’s Population have been tested COVID positive. We lost one of our colleagues in Q3 due to COVID. 97% of employees tested positive have recovered. Regional HR continue to focus on precautions to be taken for employee
Slide 78: ECL Methodology
Chola inter a better life ECL Methodology murugappa 76
Slide 79: Measurement Framework
Measurement Framework Asset ECL classification PD 12 m Stage 1 LGD EAD Staging Lifetime ECL Retail Stage 2 Framework Basis Account Conduct it is classified into different stages PD : Probability of default PD (100 %) LGD : Loss given default Stage 3 LGD EAD : Exposure at time of default EAD
Slide 80: Measurement Framework
Measurement Framework Asset ECL Description classification PD 12 m • Assets with low risk (0-30 DPD) on reporting date Stage 1 LGD • Loss estimate based on a 1 year forward estimate EAD Lifetime • Assets with Significant Increase in Credit Risk (SICR) since initial recognition Stage 2 • Assets w
Slide 81: Retail Pooling
Retail Pooling Portfolios are segmented based on the below categories. PD Chola term structure and LGDs are computed for each segment separately. Home Vehicle Finance Loan Against Property Others Loan MLCV/2W/3W LAP Tamil HCV New LCV New LAP Delhi New Nadu LAP Punjab / OLDER CAR/MUV New USED Haryana
Slide 82: Contact us
Contact us Cholamandalam Investment and Finance Company Limited (Chola), Dare House 1st Floor, No. 2, NSC Bose Road, Parrys, Our registered Chennai 600001. office Toll free number: 1800-200-4565 (9 AM to 7 PM) Land Line: 044–3000 7172 http://www.cholamandalam.com Sujatha P-Sr. Vice President & Compa
Slide 83: Disclaimer
Disclaimer • Certain statements included in this presentation may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Investment and Finance Company Ltd and its subsidiaries. There can
Slide 84: Thank You
§} Chola oe Enter a better life ul STRONGER TOGETHER Collaborating for Success! THANK YOU [LO
Cholamandalam Investment and Finance Company — Q3 FY2021 Earnings Presentation on 6ix