Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Corporate Update (April 2020)
20 slides from Cholamandalam Investment And Finance's corporate update, Apr 17, 2020
Slide 1: Cover letter to NSE and BSE
April 17, 2020 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Capital Market – Listing, Exchange Plaza, 25th Floor, Phiroze Jeejeebhoy Towers 5th Floor, Plot No. C/1, G Block, Dalal Street, Fort Bandra‐Kurla Complex, Bandra (E), Mumbai 400 001 Mumbai 400 051 NSE SCRIP
Slide 2: COVID 19: Business Impact and Response – April 2020
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED COVID 19: Business Impact and Response – APRIL 2020
Slide 3: Executive summary
Executive summary • Chola has instituted a robust Business Continuity Plan for the short term as a response to Covid ‐ financial planning, business strategy realignment, employee productivity re‐focus, IT enablement and renewed customer engagement. • Chola’s Q4 FY20 disbursements have decreased 35%
Slide 4: Chola's response to Covid
Chola’s response to Covid 1. Deployed a Crisis Management Team at Head Office • Assessed business impact • Evolve strategies for response in the short term • Streamlined expenses and cashflows for the immediate term • Launched cash conservation initiatives 2. Identified key personnel across function
Slide 5: Disbursements – Q-o-Q
DISBURSEMENTS – Q‐o‐Q Disbursements (₹Cr) Disbursements (%) *8,893 *8,572 476 5% 6% 6% 7% 5% 5% 7% 531 *7,644 *7,475 8% *7,381 *7,014 413 13% 13% 13% 14% 12% 12% 12% 11% 1,101 *6,899 618 1,034 521 361 380 954 939 1,064 908 *5,784 910 408 657 6,940 7,383 81% 81% 81% 79% 82% 80% 83% 82% 6,277 5,949 5,
Slide 6: AUM – Q-o-Q
AUM – Q‐o‐Q Business - Assets under Management (₹Cr) Business - Assets under Management (%) 12% 27% 24% 20% *60,778 *60,583 *57,494 *59,292 2,779 3,190 *54,279 3,393 2,398 12,612 *50,753 13,000 2,047 13,056 3% 4% 12,119 *47,761 2,060 3% 5% 4% 5% 4% 6% *45,361 11,626 1,512 1,445 11,185 22% 21% 22% 21
Slide 7: Disbursements & AUM – Y-o-Y
DISBURSEMENTS & AUM – Y‐o‐Y Disbursements (₹Cr) Business - Assets under Management (₹Cr) IGAAP IND AS IGAAP IND AS *60,583 3,393 *54,279 *30,451 2,047 13,056 1,631 *29,213 2,079 11,626 *25,114 3,837 *42,924 1,332 3,730 1,355 3,174 10,096 *18,591 *34,167 *16,380 944 1,064 *29,650 521 698 9,593 3,056
Slide 8: ALM Snapshot as on 31st Mar 2020
ALM Snapshot as on 31st Mar 2020 Rs in Cr. 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 (Lien free) 2,185.66 570.00 710.06 2,980.00 ‐ ‐ ‐ ‐ 6,445.72 Advances 560.56 533.42 1,391.40 3,857.49 8,227.59 22,591.52 6,050.45 6,963.33 50,175.76
Slide 9: Cash Flow Statement
Cash Flow Statement Rs in Cr. Particulars Mar‐20 Apr‐20 May‐20 Jun‐20 Jul‐20 Aug‐20 Sep‐20 (Actual) (Projections) Opening Cash Balances A 4,205 6,446 5,659 4,363 4,177 3,420 2,853 Inflows Collections 2,098 413 395 1,064 1,407 1,627 1,908 Fresh Borrowings 8,013 ‐ ‐ 1,500 ‐ ‐ ‐ Total Inflows B 10,111
Slide 10: 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 • More than 80% of our branches are present in the rural harvest expected to support tractor demand areas, towns and semi urban areas which gives us a immediately p
Slide 11: Sector outlook – Vehicle Finance business (2/2)
Sector outlook – Vehicle Finance business (2/2) Sector Outlook Chola’s Position • Recovery of Heavy Commercial Vehicles and • Our exposure to this segment has come down over the Construction Equipment segments expected to be slow – last 2 years and is below 14% at a portfolio level, our considering
Slide 12: Sector outlook – Home Equity business
Sector outlook – Home Equity business Sector Outlook Chola’s Position • MSME sector is expected to be directly • Chola shall continue to focus on retail ticket impacted due to lockdown and the uncertain size loans to reduce concentration risk economic situation • Chola’s portfolio LTV at origination
Slide 13: Sector outlook – Home Loans business
Sector outlook – Home Loans business Sector Outlook Chola’s Position Immediate term: • Chola does not have Construction Finance exposure • Project completion may get delayed and • Chola does not have material under construction prospective buyers in turn may delay purchase exposure to developer supp
Slide 14: Employee wellness initiatives
Employee wellness initiatives 1. 2. Employee Assistance program – No Salary Cuts Enabled No Job Loss on call counselling support to all 26000+ employees to deal with anxiety and personal issues Energized 3. Wide insurance coverage, including Engaged COVID 4. Multiple touch points with Employees Cent
Slide 15: Comprehensive employee communication plan
Comprehensive employee communication plan Communication agenda Mode of reach Frequency General communication on state of affairs Mailers / Messenger Weekly Health and wellness drive Mailers / Messenger Weekly Guidelines ‐ Roles and responsibilities Mailers / Phone calls with mapping during lockdown
Slide 16: IT enablement for remote operations
IT enablement for remote operations Network Support: ‐ Additional connectivity hardware and service support for all employees across the organization Server & Middleware Support: ‐ Remote vendor support in place for managing and administrating servers & middleware ‐ Application deployment and databa
Slide 17: Enhanced network security against cyberthreats
Enhanced network security against cyberthreats DC & NETWORK ENDPOINTS PEOPLE ‐ SIEM (Security Information and ‐ Increased review of the ‐ Continuous Event Management) Monitoring endpoint update for Anti‐ communication on with frequent reviews of security Virus & OS critical updates cyber precautions
Slide 18: 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 19: 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 20: Thank you
} Chola 2G Enter a better life murugappa Y yw y Le XN i —~— v4 4 ® AUGMENTING PHYSICAL PRESENCE WITH DIGITAL LEADERSHIP THANK YOU
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