Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Q2 FY2021 Earnings Presentation
89 slides from Cholamandalam Investment And Finance's earnings presentation, Oct 29, 2020
Slide 1: Exchange intimation letter on board meeting outcome
October 29, 2020 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Trade World, 4th Floor, Kamala Mills Compound 1st Floor, P.J. Towers Senapati Bapat Marg, Lower Parel, Dalal Street, Fort, Mumbai 400 013 Mumbai 400 001 NSE SCRIP CODE: CHOLAFIN EQ BSE SCRIP CODE: 511243 N
Slide 2: Schedule of Analysts / Investors call
Schedule of Analysts / Investors call: Pursuant to Regulation 30(2) of the Listing Regulations, details of the schedule of Analyst / Investors call in connection with the unaudited financial results (Standalone and Consolidated) for the quarter and half‐year ended 30th September, 2020 is given below
Slide 3: Corporate Presentation - September 2020
CORPORATE PRESENTATION - SEPTEMBER 2020
Slide 4: 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. Risk performance management 2
Slide 5: Murugappa Group Overview
Murugappa Group Overview 3
Slide 6: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 120 Years of $5.06 $8.34 Turnover cap (as on Years Existence B B (FY20) 30th Jun 2020) Listed 3 Sectors 28 Businesses 9 Companies 19 Geographical 90+ Manufacturing 51,000+ Work force Countries Presence Locations Locations 4
Slide 7: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 26,986 14,929 21,044 Turnover (Cr.) 17,058 7,704 13,249 PAT(Cr.) 1,022 572 1,291 Market Cap(Cr.) 22,083 4,903 5,277 8,353 15,498 NA 5,546 Turnover (Cr.) 13,091 3,967 2,569 4,520 8,713 4,398 91 PAT(Cr.
Slide 8: Corporate Overview
Corporate Overview 6
Slide 9: 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 10: Cholamandalam Investment & Finance Company Limited
Cholamandalam Investment & Finance Company Limited 15 lakh + customers 24,902 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 15 lakh plus customers till date 200 plus employees in year 2000 to 24,900+ employees today Rs.
Slide 11: Our journey so far
Our journey so far FY 2020-21 FY 2015-20 FY 2010-15 • Total AUM crossed 2016 ₹74k Cr. FY 2005-10 • Adopted GNPA recognition at • Increased branch 2011 120 days network to 1132. • Obtained AFC status • Total AUM • Terminated JV with DBS crossed ₹30K Cr. 2006 2012 2017 FY 1990-2005 • JV with DBS • Tot
Slide 12: 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 13: Shareholding
Shareholding Shareholding Pattern Institutional Holders (More than 1%) Top Domestic Institutional Holding • HDFC Mutual Fund • SBI Mutual Fund • Axis Mutual Fund • Birla Sun Life Mutual Fund • DSP Mutual Fund Top Foreign Institutional Holding • Cartica Capital • Vanguard o Promoters share holding of
Slide 14: Business Profile and AUM as on 30th Sep 2020
Business Profile and AUM as on 30th Sep 2020 Business AUM Rs. 67,182Cr Vehicle Finance LAP & SME Home Loan Rs. 49,264Cr Rs. 14,288Cr Rs. 3,630Cr 73% 22% 5% Top-Up 1% Used Vehicles Resale 14% 26% HCV 11% Self- Tractor 9% Construction 47% LCV 21% CE 6% Purchase - New 38% 3 Whlr 1% 2 Whlr 4% MUV 7% Car
Slide 15: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (5) Punjab (23) Himachal Pradesh (17) 1091 1098 1132 Chandigarh (2) 907 Uttarakhand (16) Haryana (32) Delhi (5) Sikkim (1) Rajasthan (83) UP (72) Assam (25) FY19 FY20 Q1FY21 Q2FY21 Meghalaya (3) Bihar (43) Gujarat Mizoram (1) Madhya Pradesh Tripura (4) 25
Slide 16: Financial Performance
Financial Performance ity! if 601,01
Slide 17: Financial Snapshot — 10 Years
Financial Snapshot —10 Years FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 CAGR CAGR Financials Snapshot YoY (10 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS (5 years) years) Disbursem ents 5,731 8,889 12,118 13,114 12,808 16,380 18,591 25,114 30,451 29,091 -4% 15% 20% A ssets u n
Slide 18: Chola: Financial Summary (I)
Chola: Financial Summary (I) Disbursements (₹Cr) Disbursements (%) * 15,954 834 -37% 5% 5% 5% 6% 5% 5% 2,383 5% 14% 16% 15% 15% 20% * 10,046 * 8,572 571 * 7,381 1,464 420 * 6,457 1,212 414 1,171 381 12,736 90% 81% 79% 80% 80% 1,296 74% * 3,589 190 8,012 6,940 168 5,796 4,781 3,231 Q1FY20 Q1FY21 Q2FY
Slide 19: Chola: Financial Summary (II)
Chola: Financial Summary (II) Business - Assets under Management (₹Cr) Business - Assets under Management (%) 13% * 67,182 * 63,501 3,630 4% 4% 5% * 57,494 3,302 * 59,292 5% 2,240 2,591 14,288 21% 21% 22% 22% 13,371 12,277 12,799 46,828 49,264 75% 74% 74% 73% 42,977 43,901 Q1FY20 Q1FY21 Q2FY20 Q2FY2
Slide 20: Chola: Financial Summary (III)
Chola: Financial Summary (III) Profit after tax (₹Cr) Networth (₹Cr) *8,987 *8,759 33% 164 164 39% 863 *6,642 *6,747 156 164 621 41% 8,595 8,823 431 432 6,486 6,583 314 307 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Reserves and Surplus Equity Share Capital * Total Networt
Slide 21: Chola: Financial Summary (IV)
Chola: Financial Summary (IV) Net Income Margin (%) Expenses Ratio (%) 7.3% 2.6% 2.6% 2.5% 2.2% 2.1% 2.1% 6.7% 6.7% 6.7% 6.7% 6.1% Q1 FY20 Q1 FY21 Q2 FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY21 Q2 FY20 Q2FY21 H1FY20 H1FY21 Loan Losses & Provisions (%) ROA - PBT (%) 1.8% 3.6% 1.1% 1.4% 3.5% 3.4% 3.4% 3.4
Slide 22: Chola: Financial Summary (V)
Chola: Financial Summary (V) Return on equity (%) Earnings per share (₹) 21.1 21.0 20.6% 16.2 15.9 20.0% 20.0% 19.2% Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q1 FY20 Q1 FY21 Q2 FY20 Q2 FY21 P/E Ratio P/BV Ratio 19.7 3.6 3.4 17.7 11.9 2.3 1.8 9.0 Q1FY20 Q1 FY21 Q2FY20 Q2 FY21 Q1FY20 Q1 FY21 Q2FY20 Q2FY21 Note: EP
Slide 23: Profit and Loss Statement (As per IND AS)
Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q2-o-Q2 H1-o-H1 Disbursements 8,572 3,589 7,381 6,457 -13% 15,954 10,046 -37% Closing Assets (Managed) 62,827 70,826 64,409 74,471 16% 64,409 74,471 16% Operating Income 2,030 2,114
Slide 24: Balance Sheet (As per IND AS)
Balance Sheet (As per IND AS) ₹ Cr Particulars Sep-19 Mar-20 Sep-20 ASSETS Financial Assets 62,542 63,021 69,672 Cash and Bank balance 6,283 6,959 6,802 Derivative financial instruments 133 114 19 Receivables 55 59 77 Loans 55,701 55,403 62,257 Investments 73 73 73 Other Financial Assets 298 413 444
Slide 25: Stagewise Assets & Provision Summary
Stagewise Assets & Provision Summary ₹ Cr Mar-19 Mar-20 Mar-20 Mar-20 Jun-20 Jun-20 Jun-20 Sep-20 Sep-20 Sep-20 Mar-19 Mar-20 Mar-20 Mar-20 Jun-20 Jun-20 Jun-20 Sep-20 Sep-20 Sep-20 Particulars Normal normal Covid Total normal Covid Total normal Covid Total Normal normal Covid Total normal Covid Tot
Slide 26: ECL - Stagewise Summary
ECL - Stagewise Summary ₹ Cr Stage wise Summary - Sep 20 Normal Total Total Normal % Total Total Addn Prov Addn Particulars Asset Prov Prov Asset PCR (%) Prov PCR (%) Stage 1 (Repayment Initiated) ^ 57,043 169 - 169 89.21% 0.30% 0.00% 0.30% Stage 1 (With Overdues) 3,284 12 402 414 5.14% 0.36% 12.24%
Slide 27: Moratorium Collections – To date
Moratorium Collections – To date # of EMIs Moratorium # of Total 1+ months Agreements Zero EMI Part EMI 1 EMI 2 EMIs 3 EMI 4+ EMIs EMIs 1 Month 33674 30% 7% 44% 11% 3% 5% 63% 2 Months 27282 17% 2% 26% 22% 8% 24% 81% 3 Months 43840 2% 0% 5% 11% 22% 60% 97% 4 Months 80263 2% 0% 5% 10% 17% 66% 98% 5 Mo
Slide 28: Business Overview
Business Overview 26
Slide 29: Vehicle Finance
Vehicle Finance
Slide 30: Vehicle Finance: H1FY21 Performance
Vehicle Finance: H1FY21 Performance • Disbursements has declined by 37% in H1FY21 as compared to Disbursements H1FY20. Assets under management • Assets have grown by 12% as compared to H1FY20. Loss and • Loan losses is at 1.4% in H1FY21 as compared to 0.9% in H1FY20 provisions Profit before tax • PB
Slide 31: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position • A faster recovery of the Rural sector and a good Rabi • Chola intends to maintain a strong focus on financing of harvest is expected to support tractor demand. The tractors given the positive industry trends. More than
Slide 32: Sector outlook – Vehicle Finance business (2/3)
Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position • Heavy commercial vehicle segment has been • Our exposure to this segment has come down over the significantly impacted, since the imposed lockdown had last 2 years and is below 12% at a portfolio level. Our a substanti
Slide 33: Sector outlook – Vehicle Finance business (3/3)
Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position • Two-wheeler segment will have a larger role in elevating • The company intends to maintain a strong focus upon the automobile sector in this year by providing two-wheeler funding given the customer preference as afford
Slide 34: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) Chola @ -14% 70,379 Chola @ -43% 1,15,846 97,802 88,108 46,391 76,645 43,945 38,446 Q2 FY'18 Q2 FY'19 Q2 FY'20 Q2 FY'21 Q2 FY'18 Q2 FY'19 Q2 FY'20 Q2 FY'21 • Stronger demand from Consumption-driven se
Slide 35: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) Chola @ -79% 78,011 Chola @-15% 62,653 8,61,639 8,63,636 7,25,128 6,22,518 (41%) 33,166 19,537 Q2 FY'18 Q2 FY'19 Q2 FY'20 Q2 FY'21 Q2 FY'18 Q2 FY'19 Q2 FY'20 Q2 FY'21 • Improved industrial activ
Slide 36: 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 37: 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 38: Vehicle Finance - Disbursement/Portfolio Mix – H1FY21
Vehicle Finance - Disbursement/Portfolio Mix – H1FY21 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra 5% Kerala 6% Kerala 5% 5% Gujarat 6% 5% Pondicherry 7% 10% Puducherry 5% Telangana Goa 5% Gujarat 0% WB 4%
Slide 39: Vehicle Finance - Disbursement/Portfolio Mix – H1FY21
Vehicle Finance - Disbursement/Portfolio Mix – H1FY21 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise HCV 2% 3 Wheeler HCV CE CE 3 Wheeler 1% 11% 6% LCV 8% 1% 2 Wheeler 14% 4% 2 Wheeler 8% LCV MUV 21% 6% CAR Used Vehicles 10% 26% Used Vehicles 28%
Slide 40: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 5,949 * 5,796 Low Yield 269 226 4% 5% 5% 8% 177 3% 9% 386 7% 5% 2% 1% * 4,703 * 4,781 1,017 17% 12% 18% 16% 1,021 21% Medium Yield 258 363 230 92 5% 411 6% 6% 348 777 6% 9% 665 6% 96
Slide 41: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 49,264 46,828 5% 5% 5% 5% 6% * 43,901 * 44,589 * 44,206 2,718 2,485 15% 13% 13% 12% 11% 2,183 5,453 Low Yield 2,131 2,220 5,585 6,725 6,043 5,603 21% 21% 21% 21% 10,317 21% 9,928 Medium Yield
Slide 42: Vehicle Finance: Financial summary Q2FY21 & H1FY21 (I)
Vehicle Finance: Financial summary Q2FY21 & H1FY21 (I) Disbursements (₹Cr) Assets under management (₹Cr) *49,264 12% 1,910 -37% *46,828 12,736 47,354 2,054 44,775 *43,901 8,012 *42,977 830 6,940 42,977 43,071 5,796 4,781 3,231 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 On
Slide 43: Vehicle Finance: Financial summary Q2FY21 & H1FY21 (II)
Vehicle Finance: Financial summary Q2FY21 & H1FY21 (II) Income (₹Cr) Profit before tax (₹Cr) 3,571 3,198 798 8% 637 1,885 1,686 1,637 1,561 440 359 319 318 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Note: Provided additional provision of Rs.214 Crs in Q2FY21
Slide 44: Vehicle Finance: Financial summary Q2FY21 & H1FY21 (III)
Vehicle Finance: Financial summary Q2FY21 & H1FY21 (III) Net Income Margin (%) Expense Ratio (%) 7.7% 7.3% 3.1% 3.0% 2.9% 6.9% 6.9% 2.5% 2.5% 2.5% 6.9% 6.8% Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1 FY20 H1 FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Loan Losses & Provisions (%) ROA - PBT (%) 2.2% 3.9% 3.4%
Slide 45: Profit and Loss Statement: Vehicle Finance (Managed)
Profit and Loss Statement: Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q2-o-Q2 H1-o-H1 Disbursements 6,940 3,231 5,796 4,781 -18% 12,736 8,012 -37% Closing Assets (Managed) 42,977 46,828 43,901 49,264 12% 43,901 49,264 12% Operating Income 1
Slide 46: Profit and Loss Statement: Vehicle Finance (On Book)
Profit and Loss Statement: Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q2-o-Q2 H1-o-H1 Disbursements 6,940 3,231 5,796 4,781 -18% 12,736 8,012 -37% Closing Assets (On B/S) 42,977 44,775 43,071 47,354 10% 43,071 47,354 10% Operating Income 1,
Slide 47: Loan Against Property
Loan Against Property
Slide 48: Loan Against Property — H1FY21 Performance
Loan Against Property — H1FY21 Performance • Disbursements has declined by 46% in H1FY21 as compared to Disbursements H1FY20. Asset under • The business has grown the assets by 10% in H1FY21. management Loss and provisions • Loan losses is at 0.7% in H1FY21 as compared to 0.04% in H1FY20. Profit bef
Slide 49: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • The Emergency Credit Line Guarantee Scheme • Chola has proactively reached out to all eligible (ECLGS) introduced by GoI saw eligibility criteria customers of ECLGS with pre-approved loan SMS relaxations in terms of including
Slide 50: Loan Against Property — Financial Summary Q2FY21 & H1FY21 (I)
Loan Against Property —Financial Summary Q2FY21 & H1FY21 (I) Disbursements (₹Cr) Assets under Management (₹Cr) -46% 10% * 13,866 * 13,109 * 12,612 * 12,119 2,351 2,427 2,282 1,991 -1% 2,165 1,171 1,101 1,064 1,052 11,516 10,129 10,683 10,331 119 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY2
Slide 51: Loan Against Property — Financial Summary Q2FY21 & H1FY21 (II)
Loan Against Property—Financial Summary Q2FY21 & H1FY21 (II) Income (₹Cr) Profit before tax (₹Cr) 9% 784 -12% 722 172 152 9% 386 399 354 368 88 84 86 65 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Note: Provided additional provision of Rs.31 Crs in Q2FY21 49
Slide 52: Loan Against Property — Financial Summary Q2FY21 & H1FY21 (III)
Loan Against Property—Financial Summary Q2FY21 & H1FY21 (III) Net Income Margin (%) Expenses Ratio (%) 3.9% 3.9% 1.2% 3.9% 3.9% 1.1% 3.9% 3.8% 1.0% 0.9% 0.9% 0.9% Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1 FY20 H1 FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Loan Losses & Provisions (%) ROA - PBT (%) 1.1% 2.8
Slide 53: Profit and Loss Statement: Loan Against Property (Managed)
Profit and Loss Statement: Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q2-o-Q2 H1-o-H1 Disbursements 1,101 119 1,064 1,052 -1% 2,165 1,171 -46% Closing Assets (Managed) 12,119 13,109 12,612 13,866 10% 12,612 13,866 10% Operating Income
Slide 54: Profit and Loss Statement: Loan Against Property (On Book)
Profit and Loss Statement: Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q2-o-Q2 H1-o-H1 Disbursements 1,101 119 1,064 1,052 -1% 2,165 1,171 -46% Closing Assets (On B/S) 10,129 10,683 10,331 11,516 11% 10,331 11,516 11% Operating Income
Slide 55: Home Loans
Home Loans )
Slide 56: Home Loans — H1FY21 Performance
Home Loans— H1FY21 Performance • Disbursements has declined by 32% in H1FY21 as compared to Disbursements H1FY20. Asset under • The business has grown the assets by 40% in H1FY21. management Loss and provisions • Loan losses maintained at 0.6% of H1FY20. Profit before tax • PBT has grown 76% in H1FY
Slide 57: Home Loans: Industry outlook
Home Loans: Industry outlook Sector Outlook Chola’s Position Immediate term: • Chola does not have Construction Finance exposure • Chola does not have material under construction • Group Housing project completion getting delayed in exposure to developer supplied houses large cities due to subdued d
Slide 58: Home Loans — Financial Summary Q2FY21 & H1FY21 (I)
Home Loans—Financial Summary Q2FY21 & H1FY21 (I) Disbursements (₹Cr) Assets under Management (₹Cr) -32% 668 688 2,962 2,613 489 -55% -8% 236 834 2,004 2,102 571 420 414 381 190 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 56
Slide 59: Home Loans — Financial Summary Q2FY21 & H1FY21 (II)
Home Loans—Financial Summary Q2FY21 & H1FY21 (II) Income (₹Cr) Profit before tax (₹Cr) 49% 76% 57 46% 53% 235 47% 121% 32 28 29 157 111 124 20 72 85 13 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Note: Provided additional provision of Rs.5 Cr in Q2FY21 57
Slide 60: Home Loans — Financial Summary Q2FY21 & H1FY21 (III)
Home Loans—Financial Summary Q2FY21 & H1FY21 (III) Net Income Margin (%) Expenses Ratio (%) 6.7% 2.9% 6.4% 2.7% 6.2% 6.2% 6.2% 6.2% 2.6% 2.4% 2.4% 2.4% Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Loan Losses & Provisions (%) ROA - PBT (%) 1.0% 3.5% 3.4% 3.2% 3
Slide 61: Profit and Loss Statement: Home Loans (Managed)
Profit and Loss Statement: Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q2-o-Q2 H1-o-H1 Disbursements 420 190 414 381 -8% 834 571 -32% Closing Assets (Managed) 2,240 3,302 2,591 3,630 40% 2,591 3,630 40% Operating Income 72 111 85 124 46% 157 235
Slide 62: Profit and Loss Statement: Home Loans (On Book)
Profit and Loss Statement: Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 H1FY20 H1FY21 Q2-o-Q2 H1-o-H1 Disbursements 420 190 414 381 -8% 834 571 -32% Closing Assets (On B/S) 2,004 2,613 2,102 2,962 41% 2,102 2,962 41% Operating Income 100 88 114 111 -3% 214 198
Slide 63: Funding Profile
Funding Profile 61
Slide 64: CAR, Credit Rating
CAR, Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 20.42 19.50 18.36 17.36 5.41 4.66 4.65 5.12 4.92 13.24 15.28 15.76 14.85 12.44 FY18 FY19 FY20 Q1FY21 Q2FY21 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care
Slide 65: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) 120% Borrowing mix by instrument type (₹Cr) * 55,903 * 54,941 * 55,005 * 58,513 * 60,578 100% 3% 6% 10% 7% 3% 7% 3% 3% 3% 3% 8% 7% 7% 9% 5% 9% 6% 80% 5% 3% 4% 3% 2% 8% 3% 10% 1% 10% 11% 12% 60% 14% 40% 60% 58% 54% 57% 47% 20% 7% 7% 8% 7% 7% 0% Q2FY20 Q3FY20 Q4FY
Slide 66: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 55,903 * 54,941 * 55,005 * 58,513 * 60,578 100% * 62,000 9% 9% 8% 7% 7% 2% 1% 2% 90% 2% 2% 3% * 61,000 3% 3% 4% 3% 4% 4% 4% 4% 6% 80% * 60,000 70% * 59,000 60% * 58,000 50% 61% 65% 67% * 57,000 68% 66% 40% * 56,000 30% * 55
Slide 67: ALM Statement as of 30th Sep 2020 (As per IND AS)
ALM Statement as of 30th Sep 2020 (As per IND AS) (₹Cr) ALM snapshot as on 30th Sep 2020 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 2,904.83 785.00 900.00 850.00 985.00 - - - 6,424.83 Advances 1,663.45 1,447.49 1,711.19 6,716.23 10,23
Slide 68: Subsidiaries
Subsidiaries 66
Slide 69: Subsidiaries – H1FY21
Subsidiaries – H1FY21 •CHFL recorded a gross income of Rs. 17.33 crores for the half •During the quarter CSEC focused on creating three distinct year ended 30 Sep, 2020 as against Rs. 20.31 crores in H1FY20 business lines for enhancing revenues and productivity - broking, and PBT of Rs.1.18 crores a
Slide 70: Risk Management
Risk Management 68
Slide 71: Risk Governance Structure
Risk Governance Structure Oversee the entire risk Board of Directors management process Formed in Oct 2007,operational Risk Management from 2008 Committee Meet four times in a year Reviews framework & process, periodic monitoring of exposures Review of other initiatives with a Chief Risk O
Slide 72: ERM as Value Centre in Corporate Processes
ERM as Value Centre in Corporate Processes • ERM at Chola works as a value centre • Risk management team engages in defining framework, overseeing enterprise wide risks and building a portfolio for risk appetite based decision making. • At Chola risk management is an integral part of the existing bu
Slide 73: ERM as Value Centre in Business Processes
ERM as Value Centre in Business Processes • Risk registers for various business process to identify laundry list of risks, controls, residual risks and KRIs for monitoring • ERM works with business teams on the overall customer life cycle management Active portfolio Identifying segments & management
Slide 74: ERM as Value Centre in Strategic Functions
ERM as Value Centre in Strategic Functions • Actively involved in giving strategic inputs for scenario building • Active participant in Asset Liability support group which monitors company’s liquidity position • Building forward looking macro indicators and its impact on business metrics • Involved
Slide 75: Information Technology
Information Technology 73
Slide 76: Technology Updates
Technology Updates Technology Updates Technology Infrastructure Application Platform Delivering resilient & scalable environment Stable foundation for core products & services Connectivity infrastructure and bandwidth augmented to Transition mortgage related businesses to an industry-focused sup
Slide 77: Human Resources
Human Resources 75
Slide 78: CHOLA @ COVID times
CHOLA @ COVID times 1. No Salary Cuts 2. Enabled 3. Employee Assistance program – on call counselling support to all Central help desk to support on 25300+ employees to deal with Energized hospital admission anxiety and personal issues Claims processing support @ Zones Engaged 4. Multiple touch poin
Slide 79: Pandemic Crisis Management
Pandemic Crisis Management Increased touch points – Emphasis on employee health & Ensuring Business continuity Employee first safety • Enabling work from home • On average 500+ employees • Educating employees option for employees. reached out everyday. periodically about the • Re-aligning of HR proc
Slide 80: Update on COVID test employees – as on 17th Oct 2020
Update on COVID test employees – as on 17th Oct 2020 On an average 96% of the branches were operational during Q2 around 37% of the employees are working from office, 21% of the employees continue to work from home, about 42% are in the field. Around 6% of the CHOLA’s Population have been tested
Slide 81: Employee Wellness initiatives
Employee Wellness initiatives 1. COVID-19 protection Insurance covers : Rs. 50,000 on diagnosis of Covid-19. 2. Health Insurance with special coverage for COVID-19 treatment: Employees who are in need of hospitalization are provided a special coverage of health insurance upto a maximum of Rs.5 lakhs
Slide 82: Staying Engaged
Staying Engaged First virtual townhall with Senior Leadership covering participants from 1000+ branches across India Zonal & Regional Meets, with an emphasis on Rewards & Recognitions conducted pan India Annual performance incentive for FY 20 processed and paid to employees 1000+ executives
Slide 83: ECL Methodology
Chola inter a better life ECL Methodology murugappa 81
Slide 84: 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 85: 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 86: 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 87: 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 88: 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 89: Thank You
§} Chola oe Enter a better life ul STRONGER TOGETHER Collaborating for Success! THANK YOU [LO
Cholamandalam Investment and Finance Company — Q2 FY2021 Earnings Presentation on 6ix