Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Shareholder Meeting (July 2020)
26 slides from Cholamandalam Investment And Finance's shareholder meeting presentation, Jul 30, 2020
Slide 1: 42nd Annual General Meeting – Managing Director's Message
Cholamandalam Investment and Finance Company Limited 42nd Annual General Meeting Managing Director’s Message 30th July 2020 1
Slide 2: Company overview
} Chola i Enter a better life murugappa Company overview
Slide 3: Cholamandalam Investment & Finance Company Limited
Cholamandalam Investment & Finance Company Limited 14 lakh + customers 26,558 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 14 lakh plus customers till date 200 plus employees in year 2000 to 26,500 employees today Rs. 6
Slide 4: Business Profile and AUM as on 31st Mar 2020
Business Profile and AUM as on 31st Mar 2020 Business AUM Rs. 60,549Cr Vehicle Finance Home Equity Home Loan & Others Rs. 44,206Cr Rs. 12,960Cr Rs. 3,383Cr 73% 21% 6% Used Others 8% SME, 7% Vehicles, 26% Commercial 7% HCV, 13% Tractor , 8% CE , 5% LCV , 21% 3 Whlr , 1% SORP* 84% 2 Whlr, 4% Home Loan
Slide 5: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (5) 3 1091 Punjab (23) 19 907 Himachal Pradesh (17) 16 873 Chandigarh (2) 2 703 Haryana (32) 30 Uttarakhand (16) 15 Delhi (5) 5 Rajasthan (81) UP (72) 62 Assam (25) 25 FY17 FY18 FY19 FY20 77 Meghalaya (3) 1 Bihar (42) 41 Gujarat Mizoram (1) 1 23% 27% 26%
Slide 6: Financial performance update
Financial performance update 6
Slide 7: Business Update
Business Update • Chola has instituted a robust Business Continuity Plan as a response to COVID addressing financial planning, business strategy realignment, employee productivity re‐focus, IT enablement and renewed customer engagement. • Chola’s FY20 disbursements decreased by 4% over FY19, majorly
Slide 8: Standalone Financials – FY20
Standalone Financials – FY20 Rs in Cr Profit & Loss Account FY 20 FY 19 Growth% Disbursements 29,091 30,451 -4% Income 8,653 6,993 24% Finance Costs (4,592) (3,589) -28% Operating Expenses (1,578) (1,270) -24% Loan Losses (393) (311) -26% One time Provision due to COVID + Macro Provision (504) - Pro
Slide 9: Vehicle Finance business update
Vehicle Finance business update 9
Slide 10: Vehicle Finance: Financial summary FY20 (I)
Vehicle Finance: Financial summary FY20 (I) Disbursements (₹Cr) Assets under management (₹Cr) IGAAP IND AS IGAAP IND AS ‐6% 9% 2,056 24,983 42,150 23,387 40,606 20,607 31,473 14,471 3,360 12,383 2,186 20,271 17,914 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 On Book Assignment 10
Slide 11: Vehicle Finance: Financial summary FY20 (II)
Vehicle Finance: Financial summary FY20 (II) Income (₹Cr) Profit before tax (₹Cr) IGAAP IND AS IGAAP IND AS 21% 6,563 6% 5,430 ** 1,342 ‐26% 1,269 * 397 4,192 3,609 988 945 3,159 682 555 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** PBT adju
Slide 12: Vehicle Finance - Disbursement/Portfolio Mix – FY20
Vehicle Finance - Disbursement/Portfolio Mix – FY20 Well diversified across geography & product segments Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala Kerala 6% 5% 6% 5% 5% 5% Pondicherry Pondicherry 10% 11% Telangana 4% Telangana 4%
Slide 13: Vehicle Finance - Disbursement/Portfolio Mix – FY20
Vehicle Finance - Disbursement/Portfolio Mix – FY20 Well diversified across geography & product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler HCV 3 Wheeler HCV CE 1% CE 13% 6% 2% 5% 5% 2 Wheeler LCV 2 Wheeler 4% 19% 6% LCV 21% MUV 6% Used Vehicles 26% Used Vehi
Slide 14: Vehicle Finance - Key initiatives in FY20
Vehicle Finance - Key initiatives in FY20 The vehicle finance business has invested 2019‐20 in building long term capabilities for future growth End to End Digitization Leveraging advanced analytics Strategic partnerships Gaadi Bazaar 14
Slide 15: Home Equity business update
Home Equity business update 15
Slide 16: Home Equity — Financial Summary FY20 (I)
Home Equity — Financial Summary FY20 (I) Disbursements (₹Cr) Assets under Management (₹Cr) IGAAP IND AS IGAAP IND AS ‐5% 11% 3,837 2,425 3,662 3,476 1,671 3,174 671 3,056 1,978 2,904 9,954 10,536 9,424 6,873 6,689 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 On Book Assigned 16
Slide 17: Home Equity — Financial Summary FY20 (II)
Home Equity — Financial Summary FY20 (II) Income (₹Cr) Profit before tax (₹Cr) IGAAP IND AS IGAAP IND AS 13% **334 19% 1,478 305 ‐20% * 91 1,217 1,247 1,184 1,124 261 244 221 207 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** PBT adjusted bef
Slide 18: Home equity - Key initiatives in FY20
Home equity - Key initiatives in FY20 New LOS and LMS Focus on DSTs Enhanced Underwriting Alternate sales channels 18
Slide 19: Home Loans business update
Home Loans business update 19
Slide 20: Home Loans—Financial Summary FY20 (I)
Home Loans—Financial Summary FY20 (I) Disbursements (₹Cr) Assets under Management (₹Cr) IGAAP IND AS IGAAP IND AS 1,505 677 1,157 2,449 606 1,912 325 984 518 175 264 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 On Book Assigned 20
Slide 21: Home Loans—Financial Summary FY20 (II)
Home Loans—Financial Summary FY20 (II) Income (₹Cr) Profit before tax (₹Cr) IGAAP IND AS IGAAP IND AS **78 89% 90% 357 358 104% * 15 64 189 38 101 59 6 31 4 7 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COVID & Macro pr
Slide 22: Home Loans – Establishing the business in FY20
Home Loans – Establishing the business in FY20 Loan Origination System ‐ New Leadership FALCON Renewed Customer, product, distribution and channel strategies 22
Slide 23: Q1 FY21 Update
} Chola Enter a better life Q1 FY21 Update
Slide 24: Key activities during Q1 FY21
Key activities during Q1 FY21 Covid‐19 update • NBFC industry faced muted disbursements and slowdown in repayments due to the moratorium. • Chola’s response was comprehensive ‐ valuable learnings from these past few months shall remain with us for many years to come. Focus on the company’s long‐term
Slide 25: Q1 Financial Results
Q1 Financial Results Particulars Q1 FY21 Q1 FY20 Growth Disbursements in Cr. 3,589 8,572 -58% Assets under Management in Cr. 70,826 62,827 13% Profit After Tax in Cr. 431 314 37% Earnings Per Share in Rs. 21 16 31% Book Value per Share in Rs. 105 83 26% Gross Stage3 Assets % 3.34% 2.97% 12.5% Market
Slide 26: Thank You
Thank You Reach me at md@chola.murugappa.com 26
Cholamandalam Investment and Finance Company — Shareholder Meeting (July 2020) on 6ix