Choice International Limited · NSE:CHOICEIN
Choice International — Q3 FY24 Earnings Presentation
46 slides from Choice International's earnings presentation, Mar 20, 2024
Slide 1: Intimation of Analyst/Institutional Investor Meet
REF: CIL/CC/110/2023-24 Choice The Joy of Earning March 20, 2024 To, To, The Manager, The Manager, Listing Department Listing & Compliance Department BSE Limited National Stock Exchange of India Limited P.J. Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex, Mumbai — 400 001 Bandra East, Mu
Slide 2: Q3 & 9M FY24 Earnings Presentation
Choice The Joy of Earning Connecting PEOPLE to PROSPERITY 5,29,.°S, Choice International Ltd. (BSE: 531358, NSE: CHOICEIN) Q3 & 9M FY24 Earnings Presentation
Slide 3: Company Overview
Choice The Joy of Eaming Company Overview One of the leading financial conglomerates with over a decade’s expertise providing tech-led services Ranked 5th amongst MSME focused lending PAN India Presence top full service business with tech-led broking firms in India robust underwriting process aS & i
Slide 4: Key Highlights
Key Highlights A diversified mix for sustainable business Choice The Joy of Earning Broking & Distribution stock Broking, Mutual Funds NBFC 2 26% vy 25% 245% a 404% 807K 197K+ . Rs. 4.68 Bn Rs. 2,680 Mn Demat Accounts Active Accounts Total Loan Book Retail Loan Book REVENUE 2.63% 234% ay) 4.104 bps"
Slide 5: Q3 FY24 Highlights
Choice The Joy of Earning Q3 FY24 Highlights | Revenue (Rs. Mn) | | EBITDA (Rs. Mn) | A 163% 692 516 2.098 44 36 | 263 [| a ef & QBFY23 Q4FY23 «— QIFY24. «= G2FY24. QB FY24 1395 1393 984 403 303 299 213 139 [] Q3 FY23 Q4 FY23 QI FY24 Q2 FY24 Q3 FY24 a Q3FY23 Q4FY23 QIFY24 «= Q2FY24 G3 FY24 A 113% ]
Slide 6: 9M FY24 Highlights
9M FY24 Highlights | Revenue (Rs. Mn) ll EBITDA (Rs. Mn) | PAT (Rs. Mn) | a 112% 4 158% 4.207% 5429 1584 915 2556 63 i 298 9M FY23 9M FY24 9M FY23 9M FY24 9M FY23 9M FY24 *Figures indicate YoY Increase
Slide 7: Q3 FY24 Highlights
Choice The Joy of Earning Q3 FY24 Highlights | Segment Revenue (Rs. Mn) | | Segment PBT (Rs. Mn) | 24 281 3 FY23 Qa FY23 alrY24 Q2Fy24 3 FY24 Broking Services = Advisory Services = NBFC Services Excludes: Excludes: - Unallocable revenue: Q2 FY24 - 43, Q3 FY24 - 44 - Other Unallocable expenditure net
Slide 8: Stock Broking - Industry Overview
Stock Broking - Industry Overview | ADTO (Rs. Lacs Crores) | 383 Growing Industry ADTO with increasing share from semi-urban cs FY24 a2ry2s alFy28 Nee: geographies and steady growth of retail participation Fy22 Fy2i Tightened regulations wert : Beneficial for Choice, being industry leader with: + En
Slide 9: Stock Broking
Choice The Joy of Earning Stock Broking Expanding our PAN India reach and client demographic ae . . | Increased penetration in unserved & | | Steadily increasing client base | underserved locations Th Geographical Distribution al4% of Clients 9 25% lH Teer! a 26% i Tier 807 WB Tier & Below 768 68% 7
Slide 10: Stock Broking
Choice The Joy of Earning Stock Broking Expanding our PAN India reach and client demographic Consistently growing Broking & Distribution Segment Revenue Pokey time Lt Market Share & ADTO (Rs. Mn) (Rs. Mn) has peaked Wd may 136% 130% AI2% See itininieetetta 105% Sore aieteeeetiianisestt gooiss 769588
Slide 11: Stock Broking: Choice FinX
Stock Broking Expanding our PAN India reach and client demographic Choice The Joy of Earning Choice FinX One Customer, One Platform - Financial Services Super App Kas LF Ty | ies, y CT arawanisran R: Ee ( a (§]_ In-app Curated Baskets PANGtAnEs SJ Multi-lingual App Hipritam Diversify & Diverse Inves
Slide 12: Stock Broking
Choice The Joy of Earning Stock Broking Simple User Interface, Research, In-app Curated Baskets, Diverse Investment Products User Behavior-Driven Client Engagement: We focused on enhancing client engagement through user behavior analysis. Leveraging insights, we have is) 46 Mi 1on+ seen success in u
Slide 13: Tech Insights
Tech Insights Seamless collaborations, Cutting-edge features | Front | > | Middle Layer End (Custom Interface Layer) Usage of Middle Layer: * GIT + Charts +» Orders » Reports + MIS . traditional systems Integrations: fot +» Easy Customization Chart - Trading View 2 * Quick Iterations Benefits of Mid
Slide 14: Stock Broking
Stock Broking Simple User Interface, Research, In-app Curated Baskets, Diverse Investment Products Season Seams 1834260 ee Sr occrot stk xr 4930 0) x20 22000 (495 Users can now trade BSE F&O SENSEX Contracts Sealping ‘uid Seaiping Strateay based on Spot Future and ‘Option Premium Points o NeW Q say
Slide 15: Stock Broking - Allied Products
Choice The Joy of Earning Stock Broking - Allied Products Maximizing growth of portfolio with a mix of products | Sustained Growth in Mutual Fund AUM | | Progressive increase in SIP Book | 234% 255% 62 4,864 59 4054 4362 - 3,630 3,635 L L [ L Q3 FY23, Q4 FY23 QUFY24 Q2 FY24 Q3 FY24 Q3 FY23 Q4 FY23 Q
Slide 16: Stock Broking - Allied Products
Stock Broking - Allied Products Maximizing growth of portfolio with a mix of products | Folios expanded as investor participation surged | | Promising upward trend in clients a 25% A 33% 3 ag (320 90 302 = 84 264 [ | L [ L L Q3 FY23 Q4 FY23 QIFY24 Q2 FY24 Q3 FY24 G3 FY23 Q4 FY23 QIFY24 Q2 FY24 Q3 FY
Slide 17: Insurance - Industry Overview
Insurance - Industry Overview | Insurance Density (USS) | Long Term Goal 8,565 ong Term Goal @ Premium per capita - India f Insurance Premium ae Density is increasing = World Average driven by Insurance 874 Brokers contribution Medium Term yet a long way to ef Goal go compared to 32 4 WT 7 Global Av
Slide 18: Insurance - Industry Overview
The Joy of Earning Insurance - Industry Overview Key Growth Factors in the sector 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 to offer
Slide 19: Insurance Distribution
Insurance Distribution Tapping into new territories, Propelled by surge of marquee clients | Exponential Growth in Insurance Premium | | Enroute Mass Coverage ° A ASI a174% 512 492 10,378 8,755 338 8,008 6978 200 3,788 96 | Q3 FY23 Q4 FY23 QiFY24 Q2 FY24 Q3 FY24 Q3 FY23 Q4 FY23 Qi FY24 Q2 FY24 Q3 FY
Slide 20: Insurance Distribution
Choice The Joy of Earning Insurance Distribution Tapping into new territories, Propelled by surge of marquee clients | Significant boost in employee productivity | 100+ Project 37% eee in Policies placed ° generated on ee 529 Key Highlights Q2FY24 Ee 540 + During the quarter, we focussed on consolid
Slide 21: NBFC - Industry Overview
NBFC - Industry Overview | Banks Vs NBFCs - YoY growth in Advances | NBFCs showing strong out-performance Banks despite multiple regulatory and economic changes w\ 20 10 0 2008 Growth Prospects for NBFCs 2009 2010! 2011-2012 2023 - Digital Transformation - Schemes by Government + Regulatory Framewor
Slide 22: NBFC
Choice The Joy of Earning NBFC Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes l Total Loan Book | ie | Retail Loan Book I Rs. 4,684 Mn Rs. 2,680 Mn Our Offerings through ch w) MSME Commercial e (@) Business Pa} | Vehicle Competencies Loa
Slide 23: NBFC
Choice NBFC Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes | Growing Net Interest Margin | | Focused Retail Portfolio Mix | 4 Expanded by 310 bps Rs. 2,680 Mn. 5.08% 10.57% 10.04% 437% 992% 15.32% 8.13% 694% 2692% | 4830% Q3 FY23 Qa FY23
Slide 24: NBFC: Robust Underwriting Processes
NBFC Robust Underwriting Processes Choice The Joy of Earning Real-time Credit Multiple Bureau checks Database Checks In addition to Dedupe Check on own Credit Bureau more than 15 scorecard for databases individual clients for better screening Banks OSBI| (sem | BESERNS | EEE | Prose sank | 2) $$ FED
Slide 25: NBFC: Wide range of product offering
NBFC Wide range of product offering to cater multiple customer segments in priority sector Choice The Joy of Earning Products Name Business Loans Business Loans Supply Chain Vehicle Loans Solar Loan (Unsecured) (Secured) Finance Ticket Size Upto Rs. 750K Upto Rs. 5 Mn Upto Rs. 10 Mn Upto Rs. 2.5 Mn
Slide 26: NBFC customer demographics
5% High School (Upto T2th) . tia Graduate Post : com, radiate , y ! = Professional ‘ of Loans advanced _% of Loan Portfolio. Retail Loan Book Rooftop Solar (CA. CS, MBA y__| Towards MSMEs fess then Re. Mn Teri ties, as Dr etel Green Energy © Below 25 25 to 35, B® 36 to 50 Above 50, $$$
Slide 27: Advisory Services - Industry Overview
Advisory Services - Industry Overview rT . y a Infrastructure is much more than | Road/construchon | pemday (kins) | cement and concrete. Infrastructure guarantees a better aueel future. Infrastructure connects 27 32 28 23 people. = 12 Shri. Narendra Modi Hon'ble Prime Minister of India FYIS FYI6 FY
Slide 28: Advisory Services
Choice The Joy of Earning Advisory Services Government Infrastructure Consulting, Government Advisory, Investment Banking | Order Book (Rs. Bn) | | Statewise - Order Book | 280% 545 S20 527 N% 380 3.44 l 9 Q3 FY23 Qa FY23 QuFY24 Q2 FY24 Q3 FY24 26% | Maharashtra © Rajasthan @ Bihar West Bengal | Oth
Slide 29: Advisory Services
Choice The Joy of Earning ° ° Advisory Services Association with over 500 Urban Local Bodies, 25 State Departments and 10,000+ Panchayati Raj institutions. National Family Health Survey VI in-depth Public Health Survey - 26K households, ‘across 13K villages in the Chhattisgarh, crucial to decide hea
Slide 30: Matters: Impacting Tomorrow
Choice Matters: Impacting Tomorrow Proprietary platform for real time monitoring and to ensure timely completion of projects * Projects * 3 states 100+ Districts 350+ Talukas 20K+ schemes TOMni+ Households 55Mnh+ Beneficiaries Choice The Joy of Earning Impact of our Flagship Projects
Slide 31: Key Initiatives
Choice The Joy of Earning Key Initiatives: Partnership with Rajasthan System Integration for computerization of PACS in Bihar, Advantages of PACS computerization State Govt.: Maharashtra, Haryana &Tamil Nadu: Developing and executing a With our commitment to driving ob 3 comprehensive strategy to bo
Slide 32: Advisory Services - Key Clientele
Advisory Services - Key Clientele ) Niti Aayog ICICI Securities ADITVA BIRLA GROUP EBitertz Memaron ove ies * PuRanics eur Depertnent mena |) ee ‘Belmamation’ | WELSPUN g Vakrangee, 6) B ey] SHEMTECH comuire er aH wot. | O "4, pamoatin eum) 78) |e carecionn | ED site| Sa | Abce | Kemam [Norm ertour
Slide 33: Connect
Choice Connect Choice The Joy of Earning To enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services | No. of Choice Business Associates (CBAs) | eee ees onaut 75+ | during the 7.5K+ | a 34x Quarter 36,424 31.252
Slide 34: Connect
Choice Connect Choice The Joy of Earning To enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services Helping Agents Web, Andriod and iOS platform to work from anywhere Wide range of product basket Both recurring a
Slide 35: Way Forward
Choice The Joy of Earning Way Forward Focus on MSME Lending Lending platform with average ticket size of <Rs.1.Mn Newer demographies Targeting Tier Ill & below cities in India by leveraging our CBA network & scaling our branches Elevating Advisory Services Portfolio Amplify the expanse of our adviso
Slide 36: Consolidated Financial Performance - Quarterly
Choice The Joy of Earning Consolidated Financial Performance - Quarterly Particulars (Rs. Lakhs) - @3ry24 Q3 FY23 Y-o-Y Q2 FY24 Q-0-Q Growth (%) Growth (%) Revenue from Operations : 20,728 i 9,634 115% 19095 o% Other Income ; 250 209 20% 293 (15%) Total Income 20,978 9,843 113% 19,388 8% EBITDA 6923
Slide 37: Consolidated Financial Performance - Quarterly
Choice The Joy of Earning Consolidated Financial Performance - Quarterly Particulars (Rs. Lakhs) Q3 FY24 Q2 FY24 Q-o-Q (%) Q3 FY23 Y-o-Y (%) Growth Growth Revenue from Operations. 19.095 9,634 Other Income 293 209 Total Income 19,388 8% 9,843 113% Employee Benefit Expenses 5,399 2,852 Finance Costs
Slide 38: Consolidated Financial Performance - 9 Months
Choice The Joy of Earning Consolidated Financial Performance - 9 Months Particulars (Rs. Lakhs) 9MFY24 9MFY23 Y-o-Y (%) Growth Revenue from Operations 53,614 24914 Other Income 678 649 Total Income 54,292 25,563 2% Employee Benefit Expenses 15,832 7186 Finance Costs 2,794 1,616 Depreciation & Amorti
Slide 39: Board Members
Choice The Joy of Earning Board Members Board with extensive experience across businesses CA Arun Poddar Exe CA Subodh Kumar } Mr. AK. Thakur | CA Sudha Bhushan | Mr. Sandeep Singh | Mr. Kanhaiya Lal Berwal | Mr. Shobang Mal Jain Agarwal inden’ Independent Independent Independent Independent Indepen
Slide 40: Current Entity Structure
Choice The Joy of Earning Current Entity Structure | CHOICEIN | ee Ee ae eee eee 100% 98.05% 100% v" Choice — Services 75% I I I | Choice Choice Choice Choice Wealth Portfolio Connect Tech lab 100% 100% 100% 100%
Slide 41: Environmental, Social and Governance
Environmental, Social and Governance Well-established Financial services business, Implementing anti-bribery wa Management system. @ Improving equal opportunity practices by increasing participation of women @ & people with disabilities in its workforce. Governance Em Providing and ® facilitating ac
Slide 42: Geographical Presence
Choice The Joy of Earning Geographical Presence Mumbai - (Head office) Agra Chittorgarh Jammu Mandsaur Rajsamand Ahmedabad-l Cochin Jamshedpur Mangalore Ranchi Ahmedabad-2 Coimbatore Jhalawar Mehsana Ratlam Ahmedabad-3 Dehradun Jhunjhunu-] Morbi Salem Ahmednagar Dhanbad Jhunjhunu-2 Mumbai-Marol Secu
Slide 43: Media Presence
Media Presence Extensive coverage by Television, Digital, Print and Social Media News and Print Media Ms GIN. BusiiicsLine ae inline Tis amas ese a Z Bloomberg PROFIT = The Print USES REUTERS ‘Taw Eeosomte'Tive Business Standard = BD exaxcin, Follow Us on:- oo 0 98 eg @ "345 | | | | | Hours on vario
Slide 44: Memberships and Certifications
Memberships and Certifications Registered across exchanges in India ONsE 3SE ox. © NCDEX ER 4 CDSL Certifications Memberships And Registrations © NSDL Choice The Joy of Earning Auditors MSKA & Associates Chartered Accountants - A Member firm of BDO
Slide 45: Disclaimer
Choice The Joy of Earning 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. T
Slide 46: Thank you
Thank you