Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (December 2016)
46 slides from Cholamandalam Investment And Finance's investor presentation, December 2016
Slide 1: Corporate Presentation – December 2016
Cholamandalam Investment and Finance Company Limited Corporate Presentation – December 2016
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's Highlights
Company’s Highlights 1 Positioning 2 Exceptional Lineage Established in 1978, one of India’s A part of the ₹ 295 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 ₹ 148bn1
Slide 5: Journey So Far
Journey So Far … FY - 2017 AUM moved to ₹ 350 bn Consistently profit making and dividend paying1 company since 1979 with a strong track FY - 2015 Addition of Infusion of record of dividends to shareholders CCPS of 166 branches FY - 2013 in Tier III Total Assets under ₹ 5,000 mn and IV cities Managem
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 ₹ 1,47,725 mn Finance Company and one of the leading financial provider for vehicle finance, (US$ 2,174 mn) business finance, home equity loans,
Slide 7: Strong Corporate Governance
Strong Corporate Governance “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 graduate 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 a Diploma in
Slide 9: Management – Board Level
Management – Board Level Mr. Nalin Mansukhlal Shah – Independent Director •Is a Chartered Accountant from the Institute of Chartered Accountants in England & Wales. •Has over 32 years of experience in banking and financial services industries. •Was a member of the Governing Board of Deloitte India f
Slide 10: Corporate Overview
Corporate Overview Shareholding Pattern Chola Finance - Share Price Growth Institutions 95% 15% 75% 55% Public 8% 35% 15% -5% Promoters FII -25% 53% 24% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Chola Finance Sensex Promoters share holding of 53.13% includes Tube Investments – 46.22%, Dec 15 Mar 16 Jun
Slide 11: Corporate Overview
Corporate Overview Business Segments Overview Portfolio Breakup AUM * (₹ mn) FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 YoY Growth Vehicle Finance Vehicle Finance TRACTOR, 9% CE, 2% On Book 1,41,787 1,49,215 1,79,144 1,71,718 2,02,776 18% OLDER HCV, 16% VEHICLES, 13% Assigned 28,857 27,171 21,859 17,180 1
Slide 12: Corporate Overview
Corporate Overview FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 YoY Disbursements (₹ mn) Growth Vehi cl e Fi nance 1,01,281 93,627 1,23,830 86,230 1,00,641 17% Home Equi ty 28,097 30,434 34,764 24,826 25,117 1% Gol d - 618 - - - - MSME 1,371 2,490 3,253 1,949 5,092 161% Home Loans 393 892 1,746 1,189 2,251
Slide 13: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (2) Branch Network 700 529 534 534 215 Punjab (26) Himachal Pradesh (5) 94 153 167 Uttarakhand (8) 164 200 Harayana 153 180 (16) Delhi (11) 144 161 123 102 68 83 90 53 Rajasthan (55) UP (43) 32 32 49 34 Assam (14) FY14 * FY15 FY16 YTD Dec 16 Bihar (24) A
Slide 14: Chola - Financial Summary
Chola - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *1,63,803 *3,26,863 5,208 *2,96,504 *1,31,142 *1,28,076 *1,33,783 *2,80,040 1,764 4,015 34,764 *1,14,389 8,025 *2,54,525 44,044 *2,32,534 41,643 31,612 28,097 3,333 25,117 35,482 30,434 40,874 24,826 86,230 1,00,641 1,01,2
Slide 15: Chola - Financial Summary (Cont'd)
Chola - Financial Summary (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 8.7% 8.5% 8.4% 3.5% 3.5% 7.9% 3.4% 3.4% 3.4% 7.7% FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.8%
Slide 16: Performance Highlights – Q3 & YTD Dec 16
Performance Highlights – Q3 & YTD Dec 16 Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE* Q3-FY17 ₹ 43,734 mn ₹ 1,625mn 3.5% ₹ 266.1 ₹ 41.3 15.8% 3% 12% -3% 17% 11% -5% Q3-FY16 ₹ 42,597 mn ₹ 1,457 mn 3.6% ₹ 227.6 ₹ 37.1 16.7% Disbursements Profit after Tax ROTA (PBT) Book Value EPS* RO
Slide 17: Portfolio Performance
Portfolio Performance 4.3% 3.8% 3.5% 3.1% 2.8% 2.0% 2.1% 2.3% 1.9% 1.4% 1.5% 1.6% 1.1% 1.1% 0.7% 2013-14 2014-15 2015-16 YTD Dec 15 YTD Dec 16 (6months+) (5 months+) (4 months+) (4 months+) (4 months+) GNPA Provision NNPA Note: GNPA is presented at 4 months overdue. Provision to meet 3 months overdu
Slide 18: Update: YTD Dec 16
Update: YTD Dec 16 Disbursements • Disbursement for YTD Dec 16 stood at Rs. 1,33,783 mn, a growth of 17% YoY. PAT • PAT for YTD Dec 16 stood at Rs. 4,992 mn, a growth of 33% YoY. RoE • Return on equity at 17% in YTD Dec 16, a growth of 14% YoY. AUM • AUM has crossed Rs.35,000 mn • The additional pro
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) 31% 24% 24% 40% 1,62,659 1,58,153 43% 46% 44% 1,20,524 42% 1,00,012 32% 30% 25% 18% Dec-13 Dec-14 Dec-15 Dec-16 HCV LCV SCV/3W Pick ups Dec-13 Dec-14 Dec-15 Dec-16 Trend in Domestic LCV Sales (in Units) T
Slide 22: Vehicle Finance – Business Model & Positioning
Vehicle Finance – Business Model & Positioning Low Losses 0.75 % 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
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 – YTD Dec 16
Vehicle Finance - Disbursement / Portfolio Mix – YTD Dec 16 Well diversified across geography & product segments Disbursements - State wise Portfolio – State wise MP 6% AP 5% KARNATAKA 5% MP 6% AP 5% MAHARASHTRA KARNATAKA 5% KERALA 4% 12% MAHARASHTRA 12% Pondicherry 0% KERALA 4% Pondicherry 0% TELAN
Slide 25: Vehicle Finance - Financial Summary
Vehicle Finance - Financial Summary Maintaining a healthy growth in Disbursement and PBT while coping with a sustained slowdown in the M&HCV segment Disbursements Assets Under Management (₹ mn) (₹ mn) 1,23,830 *2,21,613 *2,01,003 1,01,281 1,00,641 *1,88,898 18,837 *1,70,645 *1,76,386 93,627 21,859 1
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) 8.5% 8.2% 8.2% 7.5% 3.8% 3.8% 3.7% 7.1% 3.5% 3.6% FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) -
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 83 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 Emp
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) 34,764 *96,266 30,434 *88,518 *84,810 28,097 *72,799 24,826 25,117 19,784 25,207 *58,604 14,432 8,312 12,016 46,588 64,487 68,734 70,377 71,059 FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 FY14 FY15 FY16 YTD Dec 15 YTD Dec 1
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) 5.6% 5.4% 1.6% 5.1% 5.1% 4.4% 1.3% 1.2% 1.2% 1.2% FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C)
Slide 32: Funding Profile
Funding Profile 32
Slide 33: CAR, Credit Rating and ALM Statement
CAR, Credit Rating and ALM Statement Tier I Tier II ALM Statement as on Dec 2016 ₹ mn Capital Adequacy Ratio Time Buckets Outflows Inflows Mismatch Cum Mismatch 1–14 Days 4,615 7,994 3,379 3,379 21.24 19.68 20.10 15–30/31 Days 13,839 13,947 108 3,487 19.21 17.23 Over 1–2 Months 19,643 19,742 99 3,58
Slide 34: Diversified Borrowings Profile
Diversified Borrowings Profile ₹ mn * 2,48,955 *2,25,762 *2,20,780 *1,94,752 *1,80,932 82,373 1,11,200 1,05,375 1,01,965 39,120 91,812 6,533 27,560 20,115 5,647 4,975 16,967 22,038 12,449 92,092 26,006 39,687 48,466 52,236 35,654 21,813 26,087 26,087 26,087 28,837 Mar-14 Mar-15 Mar-16 YTD Dec 15 YTD
Slide 35: Business Enablers
--- TECHNOLOGY LEVERAGE
Slide 36: Technology
Technology Overview: Applications (Cont’d) Planning & Budgeting – Provides a world class planning tool The company deploys a hybrid resource model that using Hyperion for inclusive budgeting by utilising both top- optimises use of vendor platforms and resources and at the down and bottom-up approach
Slide 37: Risk Management
Risk Management Risk Management Committee (RMC): Risk Management (contd..) RMC comprises Chairman, three Independent Directors and ALCO meets every month to discuss treasury operations related the Managing Director besides the senior management as risk exposures within the financial risk managem
Slide 38: Financial Performance
Financial Performance nier a better life 3g Murugappa
Slide 39: Profit and Loss Account
Profit and Loss Account ₹ mn Particulars FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 Disbursements 1,31,142 1,28,076 1,63,803 1,14,389 1,33,783 Operating Income 32,628 36,912 41,937 30,573 34,469 Finance Charges 17,711 19,604 20,508 15,178 16,833 Net Income Margin 14,918 17,308 21,429 15,395 17,637 Expense
Slide 40: Balance Sheet
Balance Sheet ₹ mn Particulars Mar-14 Mar-15 Mar-16 Dec-15 Dec-16 Equity and Liabilities Shareholders’ Funds 22,947 31,733 36,574 35,493 41,588 Current Liabilities 92,760 78,892 1,27,214 1,07,881 1,09,518 Non-current Liabilities 99,761 1,28,106 1,15,095 1,27,205 1,57,447 Total 2,15,468 2,38,732 2,78
Slide 41: Subsidiaries
Subsidiaries & Chola 2G Enter a better life 41 Murugappa
Slide 42: Subsidiaries
Subsidiaries ₹ mn ₹ mn Cholamandalam Distribution Services Ltd Cholamandalam Securities Ltd 131 126 144 118 128 116 90 93 97 80 57 32 47 47 16 17 32 38 13 (4) FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 FY14 FY15 FY16 YTD Dec 15 YTD Dec 16 Income PAT Income PAT Wealth management services for mass affluen
Slide 43: NPA Provisioning Standards
NPA Provisioning Standards Vehicle Home RBI Norms Finance Equity 5 to 20.99 Months – 10% VF Prime, CE Home Equity & 21 to 32.99 Months – 20% 4 to 5.99 Months – 10% Home Loan 33 to 56.99 Months – 30% 6 to 23.99 Months – 25% 4 to 5.99 Months – 10% Above 57 Months – 50% Above 24 Months – 100% 6 to 23.9
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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