Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (June 2017)
46 slides from Cholamandalam Investment And Finance's investor presentation, June 2017
Slide 1: Corporate Presentation – June 2017
Cholamandalam Investment and Finance Company Limited Corporate Presentation – June 2017
Slide 2: Table of Contents
Table of Contents Corporate Overview Business Overview Funding Profile Business Enablers Financial Performance Subsidiaries 2
Slide 3: Corporate Overview
& Chola Enter a better life CORPORATE OVERVIEW it murugappa
Slide 4: Company Highlights
Company Highlights 1 Positioning 2 Exceptional Lineage Established in 1978, one of India’s A part of the ₹ 300 bn Murugappa leading NBFC’s, focused in the rural Group – founded in 1900, one of and semi-urban sector with a India's leading business conglomerates market capitalisation of ₹ 175bn1 w
Slide 5: Journey So Far
Journey So Far … FY - 2016 Invested in White Data Systems India Consistently profit making and dividend paying1 company since 1979 with a strong track Ltd with record of dividends to shareholders 63% stake CCPS got converted to FY - 2014 Equity shares Total Assets @ ₹ 407 under Management Adopted
Slide 6: Major Companies – Murugappa Group
Major Companies – Murugappa Group Market Company Name Description Capitalisation Cholamandalam Investment and Finance Company Limited is a Non Banking ₹ 1,74,883 mn Finance Company and one of the leading financial provider for vehicle finance, (US$ 2,701 mn) business finance, home equity loans,
Slide 7: Spirit of Chola
SPIRIT OF CHOLA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 7
Slide 8: Management – Board Level
Management – Board Level Mr. M.B.N. Rao – Chairman & Independent Director •Is a Bachelor of Science in Agriculture, an Associate of the Chartered Institute of Bankers, London, a Certified Associate of the Indian Institute of Bankers and a Fellow of the Indian Institute of Banking & Finance. Holds tw
Slide 9: Management – Board Level
Management – Board Level Mr. M.M. Murugappan- Non – Executive Director •Holds a Bachelor of Technology in Chemical Engineering from University of Madras and a Master of Science in Chemical Engineering from University of Michigan, USA. •Has over 39 years of experience in the diverse areas of abrasive
Slide 10: Corporate Overview: Shareholding and Share Price
Corporate Overview Shareholding Pattern Chola Finance - Share Price Growth Institutions, 40% 17% 20% Public, 7% 0% Promoters, -20% FII, 24% 53% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Chola Finance Sensex Promoters share holding of 53.13% includes Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Tube Investments –
Slide 11: Corporate Overview: Business Segments
Corporate Overview Business Segments Overview Portfolio Breakup – 30-Jun-2017 AUM * (₹ mn) FY15 FY16 FY17 Q1FY17 Q1FY18 YoY Growth Vehicle Finance Vehicle Finance OLDER TRACTOR, 9% CE, 3% On Book 1,49,215 1,79,144 2,02,709 1,87,650 2,07,462 11% VEHICLES, 13% HCV, 17% Assigned 27,171 21,859 33,597 20
Slide 12: Company Performance – At a Glance
COMPANY PERFORMANCE – AT A GLANCE FY15 FY16 FY17 Q1FY17 Q1FY18 YoY Disbursements (₹ mn) Growth Vehicle Finance 93,627 1,23,830 1,44,710 33,261 38,190 15% Home Equity 30,434 34,764 30,559 9,914 7,397 -25% Gold 618 - - - - - MSME 2,490 3,253 6,663 1,648 1,576 -4% Home Loans 892 1,746 3,247 745 1,218 6
Slide 13: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (2) Branch Network 703 703 534 534 117 Punjab (26) Himachal 203 Pradesh (5) 167 94 249 199 Harayana Uttarakhand (9) 164 180 (16) 162 191 Delhi (11) 144 102 53 83 103 116 32 49 36 30 Rajasthan (55) UP (44) Assam (14) FY15 FY16 FY17 Q1FY18 Bihar (24) A B C
Slide 14: Chola - Financial Summary
Chola - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *1,85,913 *3,41,670 *3,49,954 *1,63,803 *2,96,504 *3,08,256 *1,28,076 5,208 10,644 *2,54,525 62,633 66,283 30,559 41,643 41,094 4,015 34,764 35,482 30,434 *45,608 *48,530 2,433 2,943 93,627 1,23,830 1,44,710 9,914 7,397 2,
Slide 15: Chola - Financial Summary (Cont’d)
Chola - Financial Summary (Cont’d) Net Income Margin (A)* Expense Ratio (B) (Operating Income - Finance Charges) 8.8% 7.8% 8.0% 7.1% 7.5% 3.0% 3.1% 2.6% 2.5% 2.5% FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.8% 1.7% 4.4% 1.3%
Slide 16: Performance Highlights – Q1FY18 Vs Q1FY17
Performance Highlights – Q1FY18 Vs Q1FY17 Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE* Q1-FY18 ₹ 48,530 mn ₹ 2,066 mn 4.4% ₹ 289.2 ₹ 53.0 18.8% 6% 25% 15% 18% 24% 6% Q1-FY17 ₹ 45,608 mn ₹ 1,657 mn 3.8% ₹ 244.8 ₹ 42.6 17.8% * Annualised 16
Slide 17: Asset Quality
ASSET QUALITY 5.0% 0.45 39.7% 40.8% 0.4 4.0% 34.8% 0.35 31.6% 33.1% 0.3 3.0% 0.25 4.7% 4.7% 0.2 2.0% 3.5% 3.6% 0.15 3.1% 3.2% 3.2% 1.0% 2.0% 2.1% 2.1% 0.1 1.4% 1.5% 1.5% 1.6% 1.1% 0.05 0.0% 0 2014-15 2015-16 2016-17 Q1 FY17 Q1FY18 (5 months+) (4 months+) (3 months+) (4 months+) (3 months+) GNPA Prov
Slide 18: Highlights – Q1FY18
Highlights – Q1FY18 Disbursements • Disbursement for Q1FY18 stood at Rs. 48,530 mn, a growth of 6% YoY. PAT • PAT for Q1FY18 stood at Rs. 2,066 mn, a growth of 25% YoY. RoE • Return on equity at 18.8% in Q1FY18, a growth of 6% YoY. AUM • AUM has crossed Rs 3,49,000 mn NPA recognition • Additional GN
Slide 19: Business Overview
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Slide 20: Vehicle Finance
& Chola Enter a better life 20
Slide 21: Vehicle Finance - Industry
Vehicle Finance - Industry Overall CV Mix (in Units) Trend in Domestic M & HCV Sales (in Units) 30% 24% 23% 28% 53,777 46,296 46% 46% 35,954 35,030 46% 50% 23% 30% 31% 22% Jun-14 Jun-15 Jun-16 Jun-17 HCV LCV SCV/3W Pick ups Jun-14 Jun-15 Jun-16 Jun-17 Trend in Domestic LCV Sales (in Units) Trend in
Slide 22: Vehicle Finance – Business Model & Positioning
Vehicle Finance – Business Model & Positioning Low Losses 0.3 % CV Industry Low Chola Position ~65% of disbursements Rates Principal Operator are to micro & small New – 11 % to 12.5 % > 50 Vehicles enterprises and agri Used – 14.50% - 16 % based customer segment Large Operators 26- 50 vehicles HCV C
Slide 23: Vehicle Finance - Key Differentiators
Vehicle Finance - Key Differentiators Quicker Turn Around Time – (TAT) Reputation as a long term and stable player in the market Strong dealer and manufacturer relationship Good penetration in Tier II and Tier III towns In house sales and collection team which is highly experienced and stable Low em
Slide 24: Vehicle Finance - Disbursement / Portfolio Mix – Q1FY18
Vehicle Finance - Disbursement / Portfolio Mix – Q1FY18 Well diversified across geography & product segments Disbursements - State wise Portfolio – State wise MP 6% AP 5% KARNATAKA 5% MP 6% AP 5% MAHARASHTRA MAHARASHTRA KARNATAKA 6% 12% KERALA 4% 10% Pondicherry 0% KERALA 4% TELANGANA 4% Pondicherry
Slide 25: Vehicle Finance - Financial Summary
Vehicle Finance - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *2,36,306 *2,43,942 1,44,710 *2,08,226 *2,01,003 33,597 36,480 1,23,830 *1,76,386 20,576 21,859 27,171 93,627 38,190 33,261 1,49,215 1,79,144 2,02,709 1,87,650 2,07,462 FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17
Slide 26: Vehicle Finance - Financial Summary (Cont’d)
Vehicle Finance - Financial Summary (Cont’d) Net Income Margin (A)* Expense Ratio (B) (Operating Income - Finance Charges) 8.2% 7.5% 7.8% 7.3% 6.7% 3.2% 3.3% 2.8% 2.8% 2.9% FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 3.5% 3.2%
Slide 27: Home Equity
Home Equity 27
Slide 28: Home Equity - Overview
Home Equity - Overview Asset Class Self Occupied Residential Property Long tenor loans serviced across 134 locations PAN India Major Players ICICI Bank HDFC Bank AXIS Bank Bajaj Finance PSU Banks Customer Segment Clear focus on the middle Socio Economic Class (SEC) of B & C Self Em
Slide 29: Home Equity - Key Differentiators
Home Equity - Key Differentiators Process Differentiator One of the best turnaround times in the industry Personalised service to customers through direct interaction with each customer Pricing Pricing in line with Industry maintaining net interest margin Fee Income adequate to cover origina
Slide 30: Home Equity - Financial Summary
Home Equity - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *95,927 *92,470 *95,808 *88,518 34,764 30,434 30,559 *72,799 29,036 20,518 29,803 19,784 8,312 9,914 7,397 64,487 68,734 66,891 71,952 66,005 FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18 On Book Assigned
Slide 31: Home Equity - Financial Summary (Cont’d)
Home Equity - Financial Summary (Cont’d) Net Income Margin (A)* Expense Ratio (B) (Operating Income - Finance Charges) 4.9% 4.6% 3.9% 4.0% 4.0% 0.9% 0.7% 0.7% 0.8% 0.6% FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 3.7% 1.0% 3.2%
Slide 32: Funding Profile
Funding Profile 32
Slide 33: CAR, Credit Rating and ALM Statement
CAR, Credit Rating and ALM Statement ALM Statement as on Jun 2017 ₹ mn Tier I Tier II Cum Time Buckets Outflows Inflows Mismatch Capital Adequacy Ratio Mismatch 21.24 1–14 Days 7,135 8,155 1,019 1,019 19.68 19.37 15–30/31 Days 7,521 8,874 1,354 2,373 18.64 18.73 Over 1–2 Months 10,462 9,303 (1,159)
Slide 34: Diversified Borrowings Profile
Diversified Borrowings Profile ₹ mn *2,42,068 *2,39,475 * 2,46,580 *2,25,762 *1,94,752 77,072 79,920 1,12,542 1,11,200 27,035 27,300 1,01,965 6,631 4,198 24,710 4,975 27,560 11,386 22,038 12,449 1,02,992 1,04,325 48,466 64,750 39,687 26,087 26,087 28,337 26,087 30,837 Mar-15 Mar-16 Mar-17 Q1FY17 Q1F
Slide 35: Business Enablers
--- TECHNOLOGY LEVERAGE
Slide 36: Technology
Technology Overview: Applications Digitization has been the core focus for the technology function The core lending platform (FinnOne) was upgraded to Version across mobility, analytics, applications and infrastructure domains. 3.12. Similarly, the accounting platform (Oracle Financials) was The org
Slide 37: Risk Management
Risk Management Risk Management Committee (RMC): Risk Management (contd..) RMC comprises Chairman, three Independent Directors and Post sanction monitoring helps to identify portfolio trends and the Managing Director besides the senior management as implement necessary policy changes members. •
Slide 38: Financial Performance
Financial Performance nier a better life 3g Murugappa
Slide 39: Profit and Loss Account
Profit and Loss Account ₹ mn Particulars FY15 FY16 FY17 Q1FY17 Q1FY18 Disbursements 1,28,076 1,63,803 1,85,913 45,608 48,530 Operating Income* 35,042 39,679 44,819 10,513 11,835 Finance Charges 19,604 20,508 22,308 5,481 5,410 Net Income Margin 15,438 19,171 22,511 5,032 6,425 Expenses 5,619 6,191 8
Slide 40: Balance Sheet
Balance Sheet ₹ mn Particulars Mar-15 Mar-16 Mar-17 Jun-16 Jun-17 Equity and Liabilities Shareholders’ Funds 31,733 36,574 43,129 38,239 45,195 Current Liabilities 78,892 1,27,214 1,05,206 1,25,328 1,18,361 Non-current Liabilities 1,28,106 1,15,095 1,58,877 1,32,491 1,49,086 Total 2,38,732 2,78,883
Slide 41: Subsidiaries
Subsidiaries & Chola 2G Enter a better life 41 Murugappa
Slide 42: Subsidiaries
Subsidiaries ₹ mn ₹ mn Cholamandalam Distribution Services Cholamandalam Securities Ltd 144 153 Ltd 128 131 126 134 32 36 43 57 61 16 22 47 36 6 5 25 11 11 FY15 FY16 FY17 Q1FY17 Q1FY18 FY15 FY16 FY17 Q1FY17 Q1FY18 Income PAT Income PAT Wealth management services for mass affluent and affluent Br
Slide 43: NPA Provisioning Standards
NPA Provisioning Standards RBI Vehicle Home Other Norms Finance Equity Products 3 to 14.99 Months – 10% VF Prime, CE Home Equity & Rural Finance & 15 to 26.99 Months – 20% 3 to 5.99 Months – 10% Home Loan Unsecured Loans 27 to 50.99 Months – 30% 6 to 23.99 Months – 25% 3 to 5.99 Months – 10% 3 to 5.
Slide 44: Contact Us
Contact Us Our Registered Office: Cholamandalam Investment and Finance Company Limited (Chola), Dare House 1st Floor, No. 2, NSC Bose Road, Parrys, Chennai 600001. Toll free number : 1800-200-4565 (9 AM to 7 PM) Land Line: 044 – 3000 7172 http://www.cholamandalam.com Email-ID : Sujatha P-Sr. Vice Pr
Slide 45: 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 46: Thank You
ey ae & Chola = Enter a better life Thank You it murugappa
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