Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (September 2021)
88 slides from Cholamandalam Investment And Finance's investor presentation, September 2021
Slide 1: Corporate Presentation - September 2021
CORPORATE PRESENTATION - SEPTEMBER 2021
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
Slide 3: Murugappa Group Overview
Murugappa Group Overview 3
Slide 4: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 121 Years of $4.2 $20.6 Turnover cap (as on Years Existence B B (FY21) 30th Sep 2021) Listed 3 Sectors 29 Businesses 10 Companies 19 Geographical 90+ Manufacturing 51 Work force Countries Presence Locations Locations 4
Slide 5: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 30,778 43,715 59,193 Turnover (Cr.) 18,545 8,432 14,030 PAT(Cr.) 2,020 589 1,824 Market Cap(Cr.) 23,324 7,455 16,876 26,839 46,254 NA 12,939 Turnover (Cr.) 14,145 4,400 2,604 5,827 9,584 4,388 58 PAT(
Slide 6: Corporate Overview
Corporate Overview 6
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
Slide 8: Cholamandalam Investment & Finance Company Limited
Cholamandalam Investment & Finance Company Limited 16.8 lakh + customers 30,318 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 16.6 lakh plus customers till date 200 plus employees in year 2000 to 30,000+ employees today
Slide 9: Our journey so far
Our journey so far FY 2020-21 FY 2021-22 FY 2015-20 2022 – H1 2016 2021 • Reaffirmed as • Adopted GNPA recognition at • Total AUM crossed constituent of FY 2010-15 120 days ₹69k Cr. FTSE4Good Index • Total AUM • Increased branch Series crossed ₹30K Cr. network to 1137. • Revival of • New LEAP LOS Di
Slide 10: Shareholding
Shareholding Shareholding Pattern Institutional Holders (More than 1%) Top Domestic Institutional Holding • Axis Mutual Fund • HDFC Mutual Fund • Birla Sun Life Mutual Fund • DSP Mutual Fund • SBI Mutual Fund • HDFC Standard Life Insurance Co Ltd • UTI Mutual Fund Top Foreign Institutional Holding o
Slide 11: Business Profile and AUM as on 30th Sep 2021
Business Profile and AUM as on 30th Sep 2021 Business AUM Rs. 70,023Cr Vehicle Finance LAP & SME Home Loan & Others Rs. 49,285Cr Rs. 15,971Cr Rs. 4,766Cr 70% 23% 7% Others 0.02% Used Resale 13% Vehicles BT 4% 27% HCV 9% Top-Up 1% Tractor Self- LCV 21% 10% Construction Builder 53% Purchase - CE 6% 3
Slide 12: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (5) Punjab (23) Himachal Pradesh (17) Chandigarh (2) 1137 1137 1140 Uttarakhand (16) Haryana (32) Arunachal Delhi (5) Sikkim (1) 1091 Pradesh (1) Rajasthan (83) UP (72) Assam (25) Meghalaya (3) FY20 FY21 Q1FY22 Q2FY22 Bihar (43) Gujarat Mizoram (1) Madhya
Slide 13: Financial Performance
Financial Performance iy” ily r $5601.01 aut Hh
Slide 14: Financial Snapshot - 10 Years
Financial Snapshot —10 Years FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 CAGR CAGR Financials Snapshot YoY (10 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS (5 years) years) Disbursem ents 8,889 12,118 13,114 12,808 16,380 18,591 25,114 30,451 29,091 26,043 -10% 9% 13% Assets und
Slide 15: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) 0% 0% 5% 5% 6% 6% 5% 6% 23% 5% * 12,341 1 17% 15% 693 20% 24% 21% * 10,046 571 2,640 * 8,706 1 1,464 494 * 6,457 2,051 381 90% 78% 80% 1,296 74% 71% 73% * 3,589 * 3,635 9,007 8,012 190 199 168 568 6,161 4,781 3,231 2,846 Q1FY21 Q1FY22 Q2FY21 Q2FY22
Slide 16: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 67,821 * 70,023 0% * 67,182 5% 7% * 63,501 1 5% 7% 4,765 4,402 3,630 3,302 21% 22% 22% 23% 15,971 15,015 14,288 13,371 74% 71% 73% 70% 46,828 48,403 49,264 49,285 Q1FY21 Q1FY22 Q2FY21 Q2FY22 Q1F
Slide 17: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 933 *10,421 *9,887 164 863 164 *8,987 *8,595 164 164 607 -24% 10,256 431 432 9,723 8,431 8,823 327 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 Reserves and Surplus Equity Share Capital * Total Networth 17
Slide 18: Asset Ratios
Asset Ratios Net Income Margin (%) Expenses Ratio (%) 2.9% 7.6% 7.7% 7.6% 2.4% 7.3% 6.7% 2.2% 2.1% 2.1% 6.1% 2.1% Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Loan Losses & Provisions (%) ROA - PBT (%) 3.1% 4.5% 3.6% 3.5% 3.4% 3.5% 1.8% 1.7% 2.5% 1.1% 0.4% 0.3%
Slide 19: Shareholders' Returns Ratios
Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 23.7% 20.6% 19.5% 29.3 13.5% 20.9 21.0 16.0 Q1FY21 Q1FY22 Q2FY21 Q2FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 P/E Ratio P/BV Ratio 32.1 4.4 4.3 19.2 2.3 11.9 1.8 9.0 Q1FY21 Q1FY22 Q2FY21 Q2FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 19
Slide 20: Profit and Loss Statement (As per IND AS)
Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q2-o-Q2 H1-o-H1 Disbursements 3,589 3,635 6,457 8,706 35% 10,046 12,341 23% Closing Assets (Managed) 70,826 75,763 74,471 75,063 1% 74,471 75,063 1% Operating Income 2,114 2,467 2,4
Slide 21: Balance Sheet (As per IND AS)
Balance Sheet (As per IND AS) ₹ Cr Particulars Sep-20 Mar-21 Sep-21 ASSETS Financial Assets 69,672 73,365 72,719 Cash and Bank balance 6,802 5,232 3,762 Derivative financial instruments 19 46 72 Receivables 77 66 97 Loans 62,257 65,839 66,515 Investments 73 1,619 1,627 Other Financial Assets 444 563
Slide 22: Stagewise Assets & Provision Summary
Stagewise Assets & Provision Summary ₹ Cr Jun-21 Jun-21 Jun-21 Sep-21 Sep-21 Sep-21 Jun-21 Jun-21 Jun-21 Sep-21 Sep-21 Sep-21 Particulars Normal Covid Total Normal Covid Total Normal Covid Total Normal Covid Total INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr % to GA % to GA % to GA % to GA % to GA % to
Slide 23: Business Overview
Business Overview 23
Slide 24: Vehicle Finance
Vehicle Finance
Slide 25: Vehicle Finance: Q2FY22 Performance
Vehicle Finance: Q2FY22 Performance Disbursements • Disbursements grown by 29% in Q2FY22 as compared to Q2FY21. Assets under management • AUM was flattish compared to Q2FY21 Loss and • Loan losses declined to 0.4% in Q2FY22 as compared to 2.2% in provisions Q2FY21. Profit before tax • PBT grown by 6
Slide 26: Sector outlook - Vehicle Finance business (1/1)
Sector outlook – Vehicle Finance business (1/1) Sector Outlook Chola’s Position • The Tractor industry had witnessed a de-growth of • More than 80% of our branches are present in the 11% in Q2 FY’22 & a growth of 10% as of H1 FY’22. rural areas, towns and semi urban areas which gives However, improv
Slide 27: Sector outlook - Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position The Heavy commercial vehicle segment had a growth • Our exposure in this segment is around 9% at a of 121% in Q2 FY’22 & 196% as of H1 FY’22 on account portfolio level. We are closely monitoring this of a very low base
Slide 28: Sector outlook - Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position The Two-wheeler industry had a de-growth of 12% in • The company intends to maintain its focus on two- Q2 FY’22 & a growth of 9% as of H1 FY’22. The wheeler funding with a clear eye for credit semiconductor issue had a
Slide 29: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) 70,379 CAGR @ 10% CAGR @ 10% Chola @ 17% Chola @ 9% 1,21,197 61,918 1,15,846 15% 3% 88,108 43,945 44,065 75,254 77,852 38,446 Q2 FY'19 Q2 FY'20 Q2 FY'21 Q2 FY'22 Q2 FY'26 (E) Q2 FY'19 Q2 FY'20 Q2 FY'2
Slide 30: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) 78,011 Chola @ 179% CAGR @ 8% CAGR @ 15% Chola @27% 10,68,110 8,63,636 2% 121% 42,366 7,26,938 7,43,268 38,471 33,166 6,22,518 19,127 Q2 FY'19 Q2 FY'20 Q2 FY'21 Q2 FY'22 Q2 FY'26 (E) Q2 FY'19 Q2
Slide 31: 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 32: 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 33: Vehicle Finance - Disbursement/Portfolio Mix - Q2FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q2FY22 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala 6% 6% Kerala 6% 5% 6% Puducherry 6% 10% Gujarat 9% Puducherry 5% Gujarat Telangana 4% 0% Goa 0% Tel
Slide 34: Vehicle Finance - Disbursement/Portfolio Mix - Q2FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q2FY22 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler 3 Wheeler HCV CE HCV CE 0.3% 1% 5% 6% 9% 6% 2 Wheeler 2 Wheeler LCV 6% 19% 4% LCV 21% MUV 8% Used Vehicles 27% Used Vehicles MUV 34% CAR
Slide 35: Vehicle Finance - Disbursement Mix - Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 6,084 * 6,153 * 6,161 383 504 397 6% 6% 6% 8% 8% 164 279 2% 3% 5% 413 5% 7% * 4,781 944 16% 1,158 16% 18% 19% Yield Low 363 1,231 20% 92 321 5% 6% 567 481 8% 8% 777 366 9% 10% 6% Med
Slide 36: Vehicle Finance - Portfolio Mix - Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 49,936 * 50,415 * 49,264 * 48,403 * 49,285 6% 6% 6% 6% 6% Low Yield 2,718 2,882 3,069 2,982 3,083 11% 10% 9% 9% 9% 5,453 5,041 4,882 4,313 4,560 21% 20% 21% 21% 21% 10,209 10,472 10,374 10,31
Slide 37: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *49,264 *49,285 *44,206 1,103 9,007 1,910 8,012 1,295 *46,828 6,161 2,054 4,781 48,182 47,108 47,354 3,231 2,846 44,775 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 O
Slide 38: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 6% 849 798 3,797 3,571 591 440 1,905 1,885 1,892 359 1,686 258 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 38
Slide 39: Vehicle Finance - Asset Ratios
Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 3.5% 8.6% 8.5% 3.0% 8.4% 7.7% 7.3% 2.6% 6.8% 2.5% 2.5% 2.5% Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Loan Losses & Provisions (%) ROA - PBT (%) 3.7% 4.8% 3.9% 3.4% 3.4% 2.2% 3.0% 2.0% 2.
Slide 40: Profit and Loss Statement - Vehicle Finance (Managed)
Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q2-o-Q2 H1-o-H1 Disbursements 3,231 2,846 4,781 6,161 29% 8,012 9,007 12% Closing Assets (Managed) 46,828 48,403 49,264 49,285 0% 49,264 49,285 0% Operating Income 1,686
Slide 41: Profit and Loss Statement - Vehicle Finance (On Book)
Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q2-o-Q2 H1-o-H1 Disbursements 3,231 2,846 4,781 6,161 29% 8,012 9,007 12% Closing Assets (On B/S) 44,775 47,108 47,354 48,182 2% 47,354 48,182 2% Operating Income 1,623
Slide 42: Loan Against Property
Loan Against Property
Slide 43: Loan Against Property - Q2FY22 Performance
Loan Against Property – Q2FY22 Performance Disbursements • Disbursements has grown by 65% in Q1FY22 as compared to Q2FY21. Asset under • The business has grown the assets by 11% in Q2FY22. management Loss and provisions • Loan losses declined to 0.04% in Q2FY22 as against 1.1% in Q2FY21. Profit befo
Slide 44: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL research expects a gradual improvement in • On back of improved economic activities, Business demand in the second half of fiscal 2022, amid has witnessed increased demand for LAP loans and expectation of faster economi
Slide 45: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 81% 2,122 * 15,421 * 14,513 * 13,866 1,828 65% * 13,109 1,961 1,736 2,351 2,427 1,171 1,052 13,592 12,552 10,683 11,516 225% 386 119 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1F
Slide 46: Loan Against Property - Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 875 195 784 152 130 -25% 432 442 386 399 86 65 65 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 46
Slide 47: Loan Against Property - Asset Ratios
Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 4.7% 4.8% 4.7% 1.3% 3.9% 3.9% 3.9% 1.1% 0.9% 0.9% 0.9% 0.8% Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Loan Losses & Provisions (%) ROA - PBT (%) 3.5% 2.1% 2.6% 2.6% 2.3% 1.9% 1.1%
Slide 48: Profit and Loss Statement - Loan Against Property (Managed)
Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q2-o-Q2 H1-o-H1 Disbursements 119 386 1,052 1,736 65% 1,171 2,122 81% Closing Assets (Managed) 13,109 14,513 13,866 15,421 11% 13,866 15,421 11% Operating Income 3
Slide 49: Profit and Loss Statement - Loan Against Property (On Book)
Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q2-o-Q2 H1-o-H1 Disbursements 119 386 1,052 1,736 65% 1,171 2,122 81% Closing Assets (On B/S) 10,683 12,552 11,516 13,592 18% 11,516 13,592 18% Operating Income 31
Slide 50: Home Loans
Home Loans ly )
Slide 51: Home Loans - Q2FY22 Performance
Home Loans – Q2FY22 Performance Disbursements • Disbursements grown by 30% in Q2FY22 as compared to Q2FY21. Asset under • The business has grown the assets by 31% in Q2FY22. management Loss and provisions • Loan losses declined to 0.8% in Q2FY22 as against 1% in Q2FY21. Profit before tax • PBT has g
Slide 52: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position Immediate term: • Affordable housing demand is expected to pick up given the • Chola does not have material under construction exposure to resumption of businesses and easing of lockdowns in most developer supplied houses markets. However
Slide 53: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *4,765 693 *4,402 579 602 571 *3,630 *3,302 494 668 688 381 5% 4,186 3,801 2,962 2,613 190 199 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 On Book Assigned * Total AUM 53
Slide 54: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 64% 93 317 235 57 51 38% 164 154 124 111 29 41 28 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 54
Slide 55: Home Loans - Asset Ratios
Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.6% 7.4% 2.4% 2.4% 2.4% 2.4% 7.3% 6.7% 6.4% 2.0% 6.2% 1.6% Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1 FY21 H1 FY22 Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Loan Losses & Provisions (%) ROA - PBT (%) 1.9% 4.4% 4.1% 3.8% 1.3% 3.5% 3.4% 3.3% 1.0%
Slide 56: Profit and Loss Statement - Home Loans (Managed)
Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY21 H1FY22 Q2-o-Q2 H1-o-H1 Disbursements 190 199 381 494 30% 571 693 21% Closing Assets (Managed) 3,302 4,402 3,630 4,765 31% 3,630 4,765 31% Operating Income 111 154 124 164 32% 235 31
Slide 57: Profit and Loss Statement - Home Loans (On Book)
Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q1FY22 Q2FY21 Q2FY22 H1FY20 H1FY21 H1FY22 Q2-o-Q2 H1-o-H1 Disbursements 190 199 381 494 30% 834 571 693 21% Closing Assets (On B/S) 2,613 3,801 2,962 4,186 41% 2,102 2,962 4,186 41% Operating Income 88 136 111
Slide 58: Funding Profile
Funding Profile 58
Slide 59: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.07 19.08 19.63 17.36 5.41 3.93 2.48 2.96 4.92 15.28 15.14 16.60 16.67 12.44 FY19 FY20 FY21 Q1FY22 Q2FY22 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Ca
Slide 60: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 60,578 * 62,047 * 63,730 * 63,197 * 62,309 6% 7% 4% 5% 7% 3% 2% 3% 2% 2% 7% 6% 7% 6% 6% 6% 6% 6% 6% 7% 2% 3% 3% 2% 2% 11% 13% 14% 15% 14% 57% 57% 55% 58% 55% 7% 7% 7% 6% 7% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Tier I I Capi
Slide 61: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type * 60,578 * 62,047 * 63,730 * 63,197 * 62,309 7% 6% 7% 6% 6% 2% 2% 2% 2% 4% 3% 3% 1% 2% 2% 6% 6% 6% 6% 7% 65% 66% 67% 63% 66% 1% 3% 1% 1% 4% 1% 4% 4% 4% 4% 8% 10% 9% 8% 11% 3% 3% 2% 3% 2% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Tru
Slide 62: ALM Statement as of 30th Sep 2021 (As per IND AS)
ALM Statement as of 30th Sep 2021 (As per IND AS) (₹Cr) ALM snapshot as on 30th Sep 2021 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 2,556.92 171.14 465.22 237.22 1,392.85 194.28 - 58.79 5,076.41 Advances 1,747.16 1,719.30 1,526.14 6,6
Slide 63: Subsidiaries
Subsidiaries 63
Slide 64: Subsidiaries - Q2FY22
Subsidiaries – Q2FY22 •CHFL recorded a gross income of Rs. 15.96 crores in Q2FY22 as •During the quarter CSEC focused on the three distinct business compared to Rs. 7.29 crores in Q2FY21 and PBT of Rs.1.38 crores lines for enhancing revenues and productivity - broking, wealth as compared to Rs. 0.40
Slide 65: Environmental Social Governance
Environmental Social Governance 65
Slide 66: Environmental, Social & Governance (ESG) at Chola
Environmental, Social & Governance (ESG) at Chola Corporate Access to Finance Governance ESG based Privacy & Data lending Security Innovation Digitization Employee Wellness Carbon Learning & Development Waste Diversity & Inclusion Green Building Empowering Communities 66
Slide 67: Responsible Products
G Responsible Products Access to Our products focus on first time borrowers (FTB) and new to credit customers (NTCC) ensuring financial inclusion of sections of society including micro business owners Finance Vehicle Financing Loan against Property Focus on transport entrepreneurs, first time borrow
Slide 68: Improving Efficiency
G Improving Efficiency Digitization Effective Governance Corporate Governance Privacy & Data Security Policies and process in place to enable Policy review at board level on periodic basis; Digitization highest standards in governance and Training on data security and privacy transparency; ethical b
Slide 69: People Power
People Power S Employee Wellness Diversity & Inclusiveness Emotional & mental wellbeing programs: Utilized by several employees in the past Business activities such as hiring, year promotion, and compensation of Dedicated grievance hotline employees, conducted without regard to Focus on Stre
Slide 70: Environmental Consciousness
E Environmental Consciousness Green Building Waste Carbon We aim at incorporating green methods With a clear focus on sustainability, As an environmentally responsible in the construction of our upcoming Chola has a well defined e-waste company Chola has taken various office buildings. The latest of
Slide 71: 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 72: Risk Management
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Slide 73: Risk Governance Structure
Risk Governance Structure Oversee the entire risk Board of Directors management process Formed in 2007-08 Risk Management Meet four times in a year Committee Periodic review of framework, process, key risk movement and other initiatives Chief Risk Officer Establish framework, tools & techn
Slide 74: 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
Slide 75: 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
Slide 76: 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
Slide 77: Information Technology
Information Technology 77
Slide 78: Technology Updates
Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all Drive enhanced usage of hybrid cloud solutions and adopt Integration with leading manufacturers for online Lead flow cloud-f
Slide 79: COVID Updates
COVID Updates 79
Slide 80: Update on COVID test employees - as on 18th Oct 2021
Update on COVID test employees – as on 18th Oct 2021 Covid Data North East West South HO Total # Total no of emp Tested Positive till date 1163 2266 1217 2146 175 6967 # Emp Under Treatment - - 1 10 - 11 # No of Hospitalisation - - - - - - # Emp Recovered till date 1159 2260 1206 2128 175 6928 # Fat
Slide 81: Employee Support Programs
Employee Support Programs Monthly gross salary credit to the family of deceased employees up to 24 months Employment opportunity on merit for the eligible dependents Support education of deceased frontline field employees’ children up to graduation Continued Insurance coverage for the rest o
Slide 82: ECL Methodology
a murugappa ECL Methodology 82
Slide 83: 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 84: 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 85: 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 86: 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 87: 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 88: Thank You
¥ Chola ie Enter a better life murugappa THANK YOU Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company — Investor Presentation (September 2021) on 6ix