Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN

Cholamandalam Investment And Finance — Investor Presentation (September 2022)

82 slides from Cholamandalam Investment And Finance's investor presentation, September 2022

  1. Slide 1: Corporate Presentation - September 2022

    CORPORATE PRESENTATION - SEPTEMBER 2022

  2. Slide 2: 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. Environmental 8. Risk performance Social Governance management 2

  3. Slide 3: Murugappa Group Overview

    Murugappa Group Overview BEST PLACES TO WORK IN INDIA 2022 Yo murnveareacaour Y ess a

  4. Slide 4: Murugappa Group in a Nutshell

    Murugappa Group in a Nutshell Consolidated Group Market 122 Years of $7.0 $27.2 Turnover cap (as on Years Existence B B (FY22) 30th Sep 2022) Listed 3 Sectors 29 Businesses 10 Companies 40 Geographical 105 Manufacturing 53,000+ Work force Countries Presence Locations Locations 4

  5. Slide 5: Murugappa Group Overview

    Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 39,738 69,954 72,510 Turnover (Cr.) 23,431 8,432 15,049 PAT(Cr.) 1,788 1,341 2,305 Market Cap(Cr.) 29,132 10,606 17,004 52,950 60,212 NA 12,298 Turnover (Cr.) 19,068 4,363 3,290 15350 10,141 4.824 84

  6. Slide 6: Corporate Overview

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  7. Slide 7: 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

  8. Slide 8: Cholamandalam Investment & Finance Company Limited

    Cholamandalam Investment & Finance Company Limited 20.9 lakh + customers 38,255 employees Helping customers enter better life Experienced team to serve more customers 2 lakh customers in year 2000 to 20.9 lakh plus customers till date 200 plus employees in year 2000 to 38,000+ employees today Rs. 87

  9. Slide 9: Our journey so far

    Our journey so far FY 2021-22 FY 2022-23 FY 2020-21 2023 • Increased FY 2015-20 2016 2022 branch network • GNPA recognition at 120 days 2021 • Reaffirmed as to 1151. • AUM crossed ₹30K Cr. • AUM crossed ₹69k Cr. constituent of • Increased • New LEAP LOS Digital platform • Increased branch FTSE4Good

  10. Slide 10: Highlights – H1FY23

    Highlights – H1FY23 ▪ Highest half yearly disbursement in the history of Chola at Rs.27,953 crores which is a growth of 126% as compared to H1FY22. ▪ Business AUM growth of 25% YoY at Rs.87,668 crores. Overview ▪ PBT at Rs.1,520 crores which is a growth of 21% as compared to H1FY22. ▪ PBT - ROTA rem

  11. Slide 11: Highlights – H1FY23

    Highlights – H1FY23 ▪ Focused on providing Home Loans under affordable segment with presence across 286 branches PAN India. HL ▪ 89% of assets are in tier 2,3,4 cities and suburbs of tier 1 cities ▪ Delivered disbursements of Rs.1,354 Cr in H1 of FY 23 (67% growth) as compared to H1FY22. ▪ PBT stood

  12. Slide 12: Ecosystem Play in the MSME Sector

    Ecosystem Play in the MSME Sector Larger enterprises largely focused by Banks Large SME Focused by via SME business since the last 5 years Medium (SENP) Focused by via LAP business since the last 15 years Small (SENP & SEP) Focused by via CSEL business | New Business Mini (SENP) Focused by via SBPL|

  13. Slide 13: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Corporate Top Domestic Institutional Holding Mutual Bodies Funds 1% • Axis Mutual Fund 22% • HDFC Mutual Fund • SBI Mutual Fund • Birla Sun Life Mutual Fund Public • Canara Robeco Mutual Fund 6% • UTI Mutual Fund Promoters' Top F

  14. Slide 14: Business Profile and AUM as on 30th Sep 2022

    Business Profile and AUM as on 30th Sep 2022 Business AUM Rs. 87,668Cr Vehicle Finance LAP Home Loan New Business Rs. 57,606Cr Rs. 18,843Cr Rs. 6,454Cr Rs. 4,765Cr 66% 21% 8% 5% Used AL 10% Vehicles Commercial BT 3% 27% HCV 7% 17% Resale 11% SME 44% LCV 21% Tractor 9% Top-Up Self- Construction CSEL

  15. Slide 15: Strong Geographical Presence

    Strong Geographical Presence Jammu & Kashmir (5) Punjab (23) 1151 Himachal Pradesh (17) 1148 Chandigarh (2) 1145 Uttarakhand (16) 1137 Haryana (35) Sikkim (1) Arunachal Delhi (5) Pradesh (1) Assam (25) FY21 FY22 Q1FY23 Q2FY23 Rajasthan (83) UP (73) Meghalaya (3) Bihar (44) Gujarat Mizoram (1) 26% 26

  16. Slide 16: Financial Performance

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  17. Slide 17: Financial Snapshot — 10 Years

    Financial Snapshot —10 Years 17 • Capital Infusion • Spurt in GNPA in FY20 and FY 21 was due to Covid and in FY 22 was due to new RBI norms on NPA

  18. Slide 18: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) * 27,953 6% 2% 1% 5,254 5% 16% 5% 6% 21% 5% 19% 1,354 13% 10% 5% 5% 4,282 5% 15% 15% 15% * 14,623 * 13,329 3,132 * 12,341 2,121 520 * 8,706 743 808 90% 611 80% 2,036 2,246 2,006 78% 316 17,063 64% * 3,635 605 58% 61% 204 1,624 203 8,562 8,502 9,007

  19. Slide 19: Assets Under Management

    Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 87,668 * 81,925 4,765 2,937 6,454 1% 1% 5,938 * 70,023 4% 5% * 67,821 551 7% 7% 502 7% 8% 4,880 18,843 4,407 17,675 21% 22% 22% 21% 14,509 15,306 55,376 57,606 71% 70% 49,285 68% 66% 48,403 Q1 F

  20. Slide 20: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 1129 *12,849 *12,316 164 164 933 *10,421 *9,887 164 164 607 566 563 12,152 12,684 9,723 10,256 327 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Reserves and Surplus Equity Share Capital * Total Networt

  21. Slide 21: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.0% 7.8% 3.0% 7.7% 7.7% 7.6% 7.7% 2.8% 2.9% 2.9% 2.4% 2.1% Q1 FY22 Q1 FY23 Q2 FY22 Q2FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2FY23 H1FY22 H1FY23 Loan Losses & Provisions (%) ROA - PBT (%) 3.1% 4.5% 3.7% 3.5% 3.5% 3.4% 1.7% 2.5% 1.5% 1.3% 1.2

  22. Slide 22: Shareholders’ Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 23.7% 29.3 27.6 27.2 27.4 18.9% 18.7% 18.3% 17.8% 21.0 13.5% 16.0 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 P/E Ratio P/BV Ratio 4.7 4.7 32.1 4.4 29.5 4.3 4.1 4.1 26.9 26.7 22.4

  23. Slide 23: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth Growth % Particulars Q1FY22 Q1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 % Q2-o-Q2 H1-o-H1 Disbursements 3,635 13,329 8,706 14,623 68% 12,341 27,953 126% Closing Assets 75,763 86,703 75,063 91,841 22% 75,063 91,841 22% (Managed)Income Operating 2,478 2,771

  24. Slide 24: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) ₹ Cr Particulars Sep-21 Mar-22 Sep-22 ASSETS Financial Assets 72,719 81,081 92,222 Cash and Bank balance 3,901 4,220 3,499 Derivative financial instruments 72 187 310 Receivables 97 128 174 Loans 66,515 74,149 85,477 Investments 1,627 2,076 2,467 Other Financial Assets

  25. Slide 25: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Jun-22 Jun-22 Jun-22 Sep-22 Sep-22 Sep-22 Jun-22 Jun-22 Jun-22 Sep-22 Sep-22 Sep-22 Mgt Mgt Mgt Mgt Particulars Normal Total Normal Total Normal Total Normal Total Overlay Overlay Overlay Overlay INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr % to GA % to GA % to

  26. Slide 26: Stagewise ECL Summary – Sep 22

    Stagewise ECL Summary – Sep 22 Normal Total Normal Total Mgmt Mgmt Particulars Asset Model Overlay Provn NNPA Asset Model Overlay Provn NNPA Rs in Cr % Stage 1A (A ) 78,920 399 - 399 78,522 89.81% 0.51% - 0.51% 89.36% Stage 1B (B ) 251 13 - 13 238 0.29% 5.05% - 5.05% 0.27% Total Stage 1 (C ) 79,171

  27. Slide 27: Stage 3 Assets Product-wise

    Stage 3 Assets Product-wise Closing Gross Stage 3 ECL Provision Net Net Asset Class Asset Stage 3 Asset % Provision Coverage Stage 3 Stage 3% Sep'22 87,872 3,375 3.84% 1,400 41.48% 1,975 2.25% VF 58,907 2,270 3.85% 972 43% 1,298 2.20% LAP 18,028 922 5.11% 342 37% 580 3.22% HL 6,114 155 2.53% 75 48%

  28. Slide 28: Chola – Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend Chola 44.27% 43.52% 42.93% 41.52% 41.62% 41.48% 12.00% 40.69% 39.67% 38.80% 40.00% 10.00% 36.45% 35.51% 8.00% 35.00% 6.79% 6.16% 5.85% 6.00% 2.41% 4.37% 30.00% 3.96% 2.24% 4.16% 3.80% 3.75% 2.27% 3.84% 4.00% 3.34% 2.98% 1.73% 1.58% 1.63% 1.75% 1.59% 1.39% 25.00% 1.28% 4.3

  29. Slide 29: Business Overview

    Business Overview 29

  30. Slide 30: Vehicle Finance

    Vehicle Finance

  31. Slide 31: Vehicle Finance: H1 FY23 Performance

    Vehicle Finance: H1 FY23 Performance • Disbursements grew by 89% in H1FY23 to Rs.17,063 crores as Disbursements compared to Rs.9,007 crores in H1FY22. Assets under • AUM have grown by 17% YoY. management Loss and • Loan losses improved to 1.9% in H1FY23 as compared to 2.1% in provisions H1FY22. • PB

  32. Slide 32: Sector outlook – Vehicle Finance business (1/3)

    Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light commercial vehicle segment had a growth ▪ Increased demand for Light commercial vehicle will of 46% in Q2 FY’23 & 70% in H1 FY’23. This segment help us garner higher volumes, however we will be is witnessing

  33. Slide 33: Sector outlook – Vehicle Finance business (2/3)

    Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position ▪ The Passenger vehicle (Car & MUV) segment had a ▪ Our focus continues to be on retail customers growth of 38% in Q2 FY’23 & 39% in H1 FY’23. This especially in smaller towns and rural areas. We will segment is poised f

  34. Slide 34: Sector outlook – Vehicle Finance business (3/3)

    Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position ▪ The Construction Equipment segment had a growth ▪ Our exposure in this segment is around 6% at a of 8% in Q2 FY’23 & 30% in H1 FY’23. The volumes portfolio level and our focus will be on building a are expected to pick

  35. Slide 35: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) Chola @ 144% 1,56,588 88,630 Chola @ -1% CAGR @ 15% CAGR @ 15% 46% 1,13,596 88,108 51,512 75,254 77,852 43,945 44,065 38,446 Q2 FY'20 Q2 FY'21 Q2 FY'22 Q2 FY'23 Q2 FY'27 (E) Q2 FY'20 Q2 FY'21 Q2 FY'22

  36. Slide 36: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) 1,05,420 Chola @25% Chola @ 79% CAGR @ 20% 11,97,269 38% 53% 10,27,922 64,966 CAGR @ 10% 7,26,938 7,43,410 42,366 6,22,518 33,166 19,127 Q2 FY'20 Q2 FY'21 Q2 FY'22 Q2 FY'23 Q2 FY'27 (E) Q2 FY'20

  37. Slide 37: 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

  38. Slide 38: 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

  39. Slide 39: Vehicle Finance - Disbursement/Portfolio Mix – Q2FY23

    Vehicle Finance - Disbursement/Portfolio Mix – Q2FY23 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra 6% 6% Kerala Kerala 6% 5% 7% 6% Puducherry 11% Gujarat Puducherry 10% 4% 5% Telangana Gujarat 0% Telangana

  40. Slide 40: Vehicle Finance - Disbursement/Portfolio Mix – Q2FY23

    Vehicle Finance - Disbursement/Portfolio Mix – Q2FY23 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise HCV 3 Wheeler 3 Wheeler CE HCV CE 6% 0.3% 1% 6% 9% 6% LCV 2 Wheeler 2 Wheeler 19% 8% 4% LCV 21% MUV 9% Used Vehicles 27% Used Vehicles MUV 31% 7%

  41. Slide 41: Vehicle Finance - Disbursement Mix – Quarter-wise

    Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 8,785 * 8,562 * 8,502 572 502 468 * 7,647 664 556 479 6% 6% 7% 6% 6% 447 5% 4% 8% 6% 6% 333 * 6,161 1,579 1,595 1,604 19% 17% 19% 1,332 18% 19% Yield Low 397 279 590 780 763 7% 569 8

  42. Slide 42: Vehicle Finance - Portfolio Mix – Quarter-wise

    Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 57,606 * 55,376 6% 6% 6% 6% 6% * 52,881 3,666 * 50,675 3,557 9% 8% 7% 7% 7% * 49,285 4,015 Low Yield 3,395 3,189 4,000 3,083 3,914 3,937 21% 21% 21% 21% 21% 4,313 12,305 11,630 10,995 10,568 Me

  43. Slide 43: Vehicle Finance - Disbursements and Asset Under Management

    Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *55,376 *57,606 17,063 547 417 *48,403 *49,285 1,295 1,103 9,007 57,189 8,562 8,502 54,829 47,108 48,182 6,161 2,846 Q1 FY22 Q1FY23 Q2 FY22 Q2FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2FY23

  44. Slide 44: Vehicle Finance - Income and Profit before tax

    Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 948 4,146 3,819 849 591 2,133 480 468 2,013 1,916 1,903 258 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 44

  45. Slide 45: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 3.5% 8.9% 3.3% 3.3% 3.3% 3.0% 8.7% 2.6% 8.7% 8.6% 8.5% 8.5% Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Loan Losses & Provisions (%) ROA - PBT (%) 3.8% 4.8% 3.6% 3.4% 3.4% 3.3% 2.1%

  46. Slide 46: Profit and Loss Statement - Vehicle Finance (Managed)

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth Growth % Particulars Q1FY22 Q1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 % Q2-o-Q2 H1-o-H1 Disbursements 2,846 8,562 6,161 8,502 38% 9,007 17,063 89% Closing Assets 48,403 55,376 49,285 57,606 17% 49,285 57,606 17% (Managed) Operating Income 1,

  47. Slide 47: Profit and Loss Statement - Vehicle Finance (On Book)

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1FY22 Q1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2-o-Q2 H1-o-H1 Disbursements 2,846 8,562 6,161 8,502 38% 9,007 17,063 89% Closing Assets (On B/S) 47,108 54,829 48,182 57,189 19% 48,182 57,189 19% Operating Income 1,8

  48. Slide 48: Loan Against Property

    CO eee ets Loan Against Property

  49. Slide 49: Loan Against Property – H1 FY23 Performance

    Loan Against Property – H1 FY23 Performance • Disbursements grew by 117% in H1FY23 at Rs.4,612 crores as Disbursements compared to Rs.2,122 crores in H1FY22. Asset under • AUM have grown by 26% YoY. management Loss and provisions • Loan losses improved to -0.03% in H1FY23 from 1.0% in H1FY22. Profit

  50. Slide 50: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • The sector witnessed improvement in the disbursements • Chola’s LAP business has witnessed strong growth in post pandemic. Disbursements would further pick-up disbursements during H1 in line with the industry because of the fe

  51. Slide 51: Loan Against Property - Disbursements and Asset Under Management

    Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 18,843 4,282 * 17,675 1,318 113% 1,418 * 15,421 * 14,513 1,828 1,961 38% 17,525 2,036 2,006 16,257 1,624 13,592 12,552 2,246 382 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22

  52. Slide 52: Loan Against Property – Income and Profit before tax

    Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,043 872 378 540 503 432 440 200 195 178 130 65 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 52

  53. Slide 53: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 5.6% 1.4% 5.3% 5.1% 1.2% 1.2% 4.7% 4.7% 4.7% 1.1% 1.0% 0.8% Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Loan Losses & Provisions (%) ROA - PBT (%) 4.6% 2.1% 4.1% 3.7% 3.5% 2.

  54. Slide 54: Profit and Loss Statement - Loan Against Property (Managed)

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth Growth % Particulars Q1FY22 Q1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 % Q2-o-Q2 H1-o-H1 Disbursements 382 2,036 1,624 2,246 38% 2,006 4,282 113% Closing Assets 14,509 17,675 15,306 18,843 23% 15,306 18,843 23% (Managed) Operating Incom

  55. Slide 55: Profit and Loss Statement - Loan Against Property (On Book)

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1FY22 Q1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2-o-Q2 H1-o-H1 Disbursements 382 2,036 1,624 2,246 38% 2,006 4,282 113% Closing Assets (On B/S) 12,552 16,257 13,477 17,525 30% 13,477 17,525 30% Operating Income

  56. Slide 56: Home Loans

    Home Loans

  57. Slide 57: Home Loans – H1 FY23 Performance

    Home Loans – H1 FY23 Performance • Disbursements grew by 48% in H1FY23 at Rs.1,354 crores as Disbursements compared to Rs.808 crores in H1FY22. Asset under • AUM have grown by 32% YoY. management Loss and provisions • Loan losses improved to 0.4% in H1FY23 from 1.3% in H1FY22. Profit before tax • PB

  58. Slide 58: Home Loans - Industry outlook

    Home Loans - Industry outlook Sector Outlook Chola’s Position • Demand remained robust in Q2 FY23 and Affordable • Chola has significantly expanded its geographical HFC growth is expected to be 17-20% in FY23. footprint especially in the North, East & West Zones while continuing to deepen its footpr

  59. Slide 59: Home Loans - Disbursements and Asset Under Management

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *6,454 *5,938 478 500 *4,880 1,354 *4,407 579 602 5,976 808 5,438 743 611 605 4,301 3,805 203 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 On Book Assigned * Total

  60. Slide 60: Home Loans - Income and Profit before tax

    Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 158 426 320 103% 93 85 222 74 204 154 167 51 42 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 60

  61. Slide 61: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 2.7% 8.4% 2.5% 8.1% 2.4% 7.7% 7.9% 7.3% 7.4% 2.1% 2.1% 1.6% Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Q1 FY22 Q1 FY23 Q2 FY22 Q2 FY23 H1FY22 H1FY23 Loan Losses & Provisions (%) ROA - PBT (%) 1.9% 5.9% 5.3% 4.7% 1.3% 4.4% 4.1% 3.8

  62. Slide 62: Profit and Loss Statement - Home Loans (Managed)

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth Growth % Particulars Q1FY22 Q1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 % Q2-o-Q2 H1-o-H1 Disbursements 203 611 605 743 23% 808 1,354 67% Closing Assets 4,407 5,938 4,880 6,454 32% 4,880 6,454 32% (Managed)Income Operating 154 204 167 222 33% 320 4

  63. Slide 63: Profit and Loss Statement - Home Loans (On Book)

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1FY22 Q1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 Q2-o-Q2 H1-o-H1 Disbursements 203 611 605 743 23% 808 1,354 67% Closing Assets (On B/S) 3,805 5,438 4,301 5,976 39% 4,301 5,976 39% Operating Income 136 185 148 205 39% 283 3

  64. Slide 64: Funding Profile

    ih onda (CCT Corres tana

  65. Slide 65: CAR and Credit Rating

    CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.62 19.07 19.15 18.40 5.41 3.93 3.13 2.90 2.63 15.28 15.14 16.49 16.25 15.77 FY20 FY21 FY22 Q1FY23 Q2FY23 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Ca

  66. Slide 66: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 62,309 * 65,806 * 69,174 * 73,929 * 79,321 7% 7% 4% 7% 4% 2% 2% 2% 2% 5% 2% 7% 6% 5% 6% 6% 5% 7% 2% 4% 2% 7% 2% 2% 2% 15% 17% 18% 14% 14% 55% 57% 61% 58% 58% 7% 6% 6% 5% 5% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Tier II Capit

  67. Slide 67: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 62,309 * 65,806 * 69,174 * 73,929 * 79,321 6% 5% 5% 6% 7% 4% 2% 3% 3% 3% 2% 2% 2% 2% 5% 3% 1% 4% 6% 7% 66% 66% 66% 63% 69% 1% 1% 1% 1% 1% 5% 4% 4% 5% 4% 11% 11% 9% 11% 9% 2% 3% 3% 4% 3% Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Tr

  68. Slide 68: ALM Statement as of 30th Sep 2022 (As per IND AS)

    ALM Statement as of 30th Sep 2022 (As per IND AS) (₹Cr) ALM snapshot as on 30th Sep 2022 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 2,418.08 - 819.21 100.93 94.74 - - 1,408.35 4,841.31 Advances 2,955.01 2,773.24 2,943.24 8,340.25 14,8

  69. Slide 69: Consolidated Financials

    Consolidated Financials 69

  70. Slide 70: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Growth % Growth % Particulars Q1FY22 Q1FY23 Q2FY22 Q2FY23 H1FY22 H1FY23 FY22 Q2-o-Q2 H1-o-H1 Income 2,493 2,796 2,497 3,067 23% 4,990 5,863 17% 10,232 Expenses 2,049 2,032 1,675 2,305 38% 3,725 4,337 16% (7,324) PBT 444 764 821 762 -7% 1,265 1,526 21% 2,908 PAT 329 5

  71. Slide 71: Environmental Social Governance

    Environmental Social Governance 71

  72. Slide 72: Awards & Accolades

    Awards & Accolades • FTSE Russell - Included in FTSE4 Good Index series FY21 FY22 • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2021. • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2022. FY 23 • CRISIL ESG rating – STRONG 72 Note: For more

  73. Slide 73: Risk Management

    Risk Management 73

  74. Slide 74: Risk Governance Structure

    Risk Governance Structure ▪ Oversee the entire risk management process Board of Directors ▪ Formed in 2007-08 ▪ Meet four times in a year Risk Management ▪ Periodic review of framework, Committee process, key risk movement and other initiatives Executive Director ▪ Review the risk management process

  75. Slide 75: Key Functions of Risk Management Division

    Key Functions of Risk Management Division • Identify key risks in each function/business • Assess the risks in terms of probability of occurrence and their impact • Identify mitigation/ risk controls put in place by respective process champions • Identify key risk indicators to measure and monitor r

  76. Slide 76: ERM as Value Centre in Business Processes

    ERM as Value Centre in Business Processes • ERM works with business teams on the overall customer life cycle management Active portfolio Identifying segments & management and channels risk profiles prioritization for collection efforts Underwriting models to Customer retention optimally onboard risk

  77. Slide 77: ERM as Value Centre in Corporate Processes

    ERM as Value Centre in Corporate Processes • Periodic engagement with internal audit team to incorporate key observations on process failures identified by IA team which will be considered as part of risk review process. ERM also gives risk based inputs to internal audit team to plan and prioritize

  78. Slide 78: Information Technology

    Information Technology 78

  79. Slide 79: Technology Updates

    Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all • Continue wider usage of hybrid cloud solutions and adopt • New platform for digital enablement of SME ecosystem with cloud-fir

  80. Slide 80: 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

  81. Slide 81: 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

  82. Slide 82: Thank You

    & Chola a6 Enter a better life murugappa THANK YOU Dare House, No. 2, N.S.C. Bose Road, Parrys, Chennai - 600001., Phone : 044 4090 7172; Fax : 044 2534 6464, E-mail : customercare@chola.murugappa.com | Website : www.cholamandalam.com Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company — Investor Presentation (September 2022) on 6ix