Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (March 2021)
85 slides from Cholamandalam Investment And Finance's investor presentation, March 2021
Slide 1: Corporate Presentation - March 2021
CORPORATE PRESENTATION - MARCH 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 120 Years of $5.06 $16.37 Turnover cap (as on 31st Years Existence B B (FY20) Mar 2021) Listed 3 Sectors 28 Businesses 9 Companies 19 Geographical 90+ Manufacturing 51,000+ Work force Countries Presence Locations Locations 4
Slide 5: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 29,958 23,181 57,080 Turnover (Cr.) 17,058 7,704 13,249 PAT(Cr.) 1,022 572 1,291 Market Cap(Cr.) 22,712 5,642 9,653 22,975 45,824 NA 11,256 Turnover (Cr.) 13,091 3,967 2,569 4,520 8,713 4,398 91 PAT(C
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 lakh + customers 26,363 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 16 lakh plus customers till date 200 plus employees in year 2000 to 26,300+ employees today Rs.
Slide 9: Our journey so far
Our journey so far FY 2020-21 FY 2015-20 2016 2021 • Adopted GNPA recognition at • Total AUM crossed FY 2010-15 120 days ₹69k Cr. • Total AUM • Increased branch crossed ₹30K Cr. network to 1137. • New LEAP LOS Digital platform • Loan Against Property 2011 • LMS v3.12 platform upgrade platform digiti
Slide 10: Shareholding
Shareholding Shareholding Pattern Institutional Holders (More than 1%) Top Domestic Institutional Holding • Axis Mutual Fund • HDFC Mutual Fund • SBI Mutual Fund • Birla Sun Life Mutual Fund • DSP Mutual Fund Top Foreign Institutional Holding • Capital World • Vanguard o Promoters’ share holding of
Slide 11: Business Profile and AUM as on 31st Mar 2021
Business Profile and AUM as on 31st Mar 2021 Business AUM Rs. 69,996Cr Vehicle Finance LAP & SME Home Loan Rs. 50,415Cr Rs. 15,236Cr Rs. 4,345Cr 72% 22% 6% BT 4% Used Resale 13% Vehicles 27% HCV 10% Top-Up 1% Tractor Self- Construction 10% LCV 21% 50% Builder CE 6% Purchase - 3 Whlr New 32% 1% 2 Whl
Slide 12: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (5) Punjab (23) 1091 1137 Himachal Pradesh (17) 907 Chandigarh (2) 873 703 Uttarakhand (16) Haryana (32) Delhi (5) Sikkim (1) Rajasthan (83) UP (72) Assam (25) FY17 FY18 FY19 FY20 FY21 Meghalaya (3) Bihar (43) Gujarat Mizoram (1) Madhya Pradesh Tripura (4
Slide 13: Financial Performance
Financial Performance Hyh Dee 04
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 (%) * 30,451 * 29,091 1,157 2% 2% 4% 5% 6% 1,505 * 26,043 * 25,114 4,310 20% 16% 14% 14% 4,199 16% 1,542 606 3,900 4,252 * 18,591 325 3,796 24,983 78% 82% 82% 80% 78% 23,387 20,607 20,249 14,471 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 VF LAP
Slide 16: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 69,996 4,345 2% 2% 4% 5% 6% * 60,549 * 54,279 3,125 15,236 29% 24% 22% 22% 22% 1,912 13,218 * 42,924 11,762 * 34,167 978 10,473 521 10,015 50,415 73% 75% 73% 69% 72% 44,206 40,606 31,473 23,631
Slide 17: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *9,561 ** 1,935 164 *8,172 * 420 164 ** 1,387 1515 *6,176 *335 44% 156 *5,098 1186 156 *4,285 1052 9,397 918 157 8,008 719 6,019 4,942 4,128 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Reserves and Surplus Equity Share Capital *
Slide 18: Asset Ratios
Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.6% 3.6% 7.5% 7.2% 3.0% 6.8% 6.8% 2.6% 2.6% 2.3% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Loan Losses & Provisions (%) ROA - PBT (%) ** 3.8% ** 1.9% 3.9% ** 3.5% 3.7% 3.7% 0.8% ** 1.5% * 0.8% * 0.8% 3.0% 2.7% *0.8% 1.1% 1.1% 0.8% 0.6% 0
Slide 19: Shareholders' Returns Ratios
Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) ** 20.9% ** 23.6 ** 19.7% 20.9% *4.0% * 5.1 19.6% * 4.5% ** 17.6 18.0% 16.9% 18.5 * 4.3 15.2% 15.2 13.4 11.8 9.2 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 P/E Ratio P/BV Ratio 30.2 4.8 4.4 24.7 3.5 3.7 21.0 19.1 11.4 1.
Slide 20: Profit and Loss Statement (As per IND AS)
Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q4FY20 Q4FY21 FY20 FY21 Q4-o-Q4 Y-o-Y Disbursements 8,572 3,589 7,381 6,457 7,475 7,926 5,663 8,071 43% 29,091 26,043 -10% Closing Assets (Managed) 62,827 70,826 64,409 74,471 65,99
Slide 21: Balance Sheet (As per IND AS)
Balance Sheet (As per IND AS) ₹ Cr Particulars Mar-19 Mar-20 Mar-21 ASSETS Financial Assets 56,637 63,021 73,365 Cash and Bank balance 3,675 6,959 5,232 Derivative financial instruments 89 114 46 Receivables 43 59 66 Loans 52,622 55,403 65,839 Investments 73 73 1,619 Other Financial Assets 135 413 5
Slide 22: Stagewise Assets & Provision Summary
Stagewise Assets & Provision Summary ₹ Cr Mar-19 Mar-20 Mar-20 Mar-20 Mar-21 Mar-21 Mar-21 Mar-19 Mar-20 Mar-20 Mar-20 Mar-21 Mar-21 Mar-21 Particulars Normal Normal Covid Total Normal Covid Total Normal Normal Covid Total Normal Covid Total INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr % to GA %
Slide 23: Business Overview
Business Overview 23
Slide 24: Vehicle Finance
Vehicle Finance
Slide 25: Vehicle Finance: FY21 Performance
Vehicle Finance: FY21 Performance Disbursements • Disbursements has declined by 13% in FY21 as compared to FY20. Assets under management • Assets have grown by 14% as compared to FY20. Loss and • Loan losses is at 1.4% towards model provisions and additional 0.9% provisions has been created towards
Slide 26: Sector outlook - Vehicle Finance business (1/1)
Sector outlook – Vehicle Finance business (1/1) Sector Outlook Chola’s Position • The Tractor industry witnessed a growth of 27% Y-o-Y • More than 80% of our branches are present in the rural due to healthy cash flows in the back of normal areas, towns and semi urban areas which gives us a clear mon
Slide 27: Sector outlook - Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position • The Passenger vehicle (Car & MUV) segment was poised • Our focus is predominantly on retail customers mainly in for an impressive growth of 22% to 25% in FY’2022, after smaller towns and rural market. Our exposure to t
Slide 28: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola @ -49% (in Units) (in Units) 2,73,844 CAGR @ 5% Chola @ -24% 2,46,255 CAGR @ 5% (25%) 2,00,406 1,92,947 5,65,408 4,61,213 (18%) 4,57,866 1,43,869 3,58,750 2,94,177 YTD Mar'18 YTD Mar'19 YTD Mar'20 YTD Mar'21 YTD Mar'
Slide 29: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) 2,95,394 CAGR @ 10% Chola @ -58% Chola @-19% 2,65,425 2,66,146 CAGR @ 7% 38,90,902 33,54,249 (2%) 31,14,258 1,65,256 27,74,159 27,13,470 1,28,500 YTD Mar'18 YTD Mar'19 YTD Mar'20 YTD Mar'21 YTD
Slide 30: 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 31: 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 32: Vehicle Finance - Disbursement/Portfolio Mix - FY21
Vehicle Finance - Disbursement/Portfolio Mix – FY21 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra 6% 5% Kerala Kerala 6% 6% 5% 8% 5% Puducherry Gujarat Puducherry 10% 5% 5% Telangana Goa Telangana Gujarat 4
Slide 33: Vehicle Finance - Disbursement/Portfolio Mix - FY21
Vehicle Finance - Disbursement/Portfolio Mix – FY21 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler HCV CE 3 Wheeler HCV CE 1% 3% 8% 1% 10% 6% LCV 2 Wheeler 2 Wheeler 16% 7% 4% LCV 21% MUV 6% Used Vehicles CAR 27% 10% Used Vehicles MUV 32
Slide 34: Vehicle Finance - Disbursement Mix - Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 6,084 * 6,153 383 504 5% 9% 8% 6% 8% 164 3% 413 5% 1% 2% 7% Medium Yield Low Yield * 4,781 944 * 4,703 12% 16% 16% 363 1,231 21% 258 5% 20% 230 92 321 5% 6% 777 567 6% 9% 366 9% 967
Slide 35: Vehicle Finance - Portfolio Mix - Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 5% 5% 6% 6% 6% * 49,936 * 50,415 * 49,264 13% 12% 11% 10% 9% 46,828 3,069 2,718 2,882 * 44,206 Medium Yield Low Yield 2,485 5,041 4,882 2,220 5,453 5,585 21% 20% 21% 21% 21% 5,603 10,209 10,472
Slide 36: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *50,415 -13% 1,479 24,983 *44,206 48,937 23,387 2,056 20,607 42,150 20,249 40,606 31,473 14,471 *23,631 3,360 20,271 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 On Book Assignment * Tot
Slide 37: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) ** 1,736 7,388 * 449 ** 1,342 6,563 1,269 1,287 5,430 * 398 36% 988 4,192 945 3,609 682 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COV
Slide 38: Vehicle Finance - Asset Ratios
Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 8.4% 3.8% 3.6% 8.1% 3.0% 3.0% 7.7% 2.7% 7.3% 7.0% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Loan Losses & Provisions (%) ** 2.3% ROA - PBT (%) ** 3.6% 3.7% ** 3.1% 3.6% ** 1.8% * 0.9% * 0.9% 3.2% * 0.9% 2.7% * 0.9% 1.4% 1
Slide 39: Profit and Loss Statement - Vehicle Finance (Managed)
Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q4FY20 Q4FY21 FY20 FY21 Q4-o-Q4 Y-o-Y Disbursements 6,940 3,231 5,796 4,781 5,949 6,084 4,703 6,153 31% 23,387 20,249 -13% Closing Assets (Managed) 42,977 46,828 43,901
Slide 40: Profit and Loss Statement - Vehicle Finance (On Book)
Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q4FY20 Q4FY21 FY20 FY21 Q4-o-Q4 Y-o-Y Disbursements 6,940 3,231 5,796 4,781 5,949 6,084 4,703 6,153 31% 23,387 20,249 -13% Closing Assets (On B/S) 42,977 44,775 43,071 4
Slide 41: Loan Against Property
Loan Against Property
Slide 42: Loan Against Property - FY21 Performance
Loan Against Property – FY21 Performance Disbursements • Disbursements has declined by 1% in FY21 as compared to FY20. Asset under • The business has grown the assets by 14% in FY21. management • Loan losses is at 0.4% towards model provisions and additional 0.6% Loss and provisions has been created
Slide 43: Loan Against Property - Industry outlook
Loan Against Property - Industry outlook Sector Outlook Chola’s Position • As per CRISIL “With the pick-up in economic activity, • Collections remain a priority for the business with MSMEs have started with their businesses, leading to activities like strengthening collections team and increasing co
Slide 44: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 14,777 -1% * 12,960 2,062 3,837 3,662 3,627 * 11,626 2,425 * 10,095 1,671 3,174 *9,593 3,056 671 2,904 12,716 9,954 10,536 9,424 6,689 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY2
Slide 45: Loan Against Property - Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) ** 396 1,639 ** 334 * 90 1,478 305 * 91 306 1,217 1,247 25% 1,184 244 221 207 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COVID &
Slide 46: Loan Against Property - Asset Ratios
Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 4.4% 1.2% 4.3% 1.1% 1.1% 1.0% 1.0% 4.1% 3.8% 3.8% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Loan Losses & Provisions (%) ROA - PBT (%) ** 1.1% ** 2.9% ** 2.7% 2.8% * 0.6% 1.0% * 0.7% ** 0.8% 2.2% 2.3% 2.2% 0.8% *0.
Slide 47: Profit and Loss Statement - Loan Against Property (Managed)
Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q4FY20 Q4FY21 FY20 FY21 Q4-o-Q4 Y-o-Y Disbursements 1,101 119 1,064 1,052 908 1,265 589 1,191 102% 3,662 3,627 -1% Closing Assets (Managed) 12,119 13,109 12,612 13
Slide 48: 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 Q3FY20 Q3FY21 Q4FY20 Q4FY21 FY20 FY21 Q4-o-Q4 Y-o-Y Disbursements 1,101 119 1,064 1,052 908 1,265 589 1,191 102% 3,662 3,627 -1% Closing Assets (On B/S) 10,129 10,683 10,331 11,
Slide 49: Home Loans
Home Loans )
Slide 50: Home Loans - FY21 Performance
Home Loans - FY21 Performance Disbursements • Disbursements has grown 2% in FY21 as compared to FY20. Asset under • The business has grown the assets by 39% in FY21. management • Loan losses is at 0.8% towards model provisions and additional 0.7% Loss and provisions has been created towards manageme
Slide 51: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position Immediate term: • Chola does not have Construction Finance exposure • While there was recovery in demand in Q4 FY21, the • Chola does not have material under construction 2nd wave of Covid may result in subdued demand with exposure to dev
Slide 52: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 2% 1,542 4,345 1,505 1,157 3,125 1,912 606 325 978 521 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 52
Slide 53: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) ** 139 76% 45% * 27 519 112 ** 78 357 78% * 15 64 189 38 101 59 6 7 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COVID & Macro provision 53
Slide 54: Home Loans - Asset Ratios
Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.3% 4.3% 7.0% 6.5% 6.1% 6.1% 3.7% 3.0% 2.8% 2.4% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Loan Losses & Provisions (%) ROA - PBT (%) ** 3.8% 1.8% ** 1.5% * 0.7% ** 3.1% * 0.6% 3.1% 1.3% 2.8% *0.7% ** 0.8% 2.5% 0.8% 1.7% * 0
Slide 55: Profit and Loss Statement - Home Loans (Managed)
Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q4FY20 Q4FY21 FY20 FY21 Q4-o-Q4 Y-o-Y Disbursements 420 190 414 381 400 434 271 538 99% 1,505 1,542 2% Closing Assets (Managed) 2,240 3,302 2,591 3,630 2,911 3,932 3,125 4,34
Slide 56: Profit and Loss Statement - Home Loans (On Book)
Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q3FY20 Q3FY21 Q4FY20 Q4FY21 FY20 FY21 Q4-o-Q4 Y-o-Y Disbursements 420 190 414 381 400 434 271 538 99% 1,505 1,542 2% Closing Assets (On B/S) 2,004 2,613 2,102 2,962 2,198 3,288 2,449 3,726
Slide 57: Funding Profile
Funding Profile 57
Slide 58: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.07 18.64 18.36 17.36 5.41 3.93 5.03 5.12 4.92 13.61 13.24 12.44 15.28 15.14 FY17 FY18 FY19 FY20 FY21 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care I
Slide 59: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) 120% Borrowing mix by instrument type (₹Cr) * 50,567 * 55,005 * 58,513 * 60,578 * 62,047 * 63,730 100% 3% 6% 7% 4% 7% 3% 7% 4% 3% 3% 2% 3% 8% 7% 6% 7% 7% 11% 5% 6% 6% 80% 3% 4% 6% 3% 2% 2% 3% 5% 2% 10% 10% 11% 13% 15% 60% 21% 40% 60% 58% 57% 57% 55% 43% 20% 8% 8
Slide 60: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 50,567 * 55,005 * 58,513 * 60,578 * 62,047 * 63,730 100% * 70,000 8% 7% 7% 6% 7% 11% 2% 90% 2% 1% 2% 2% 3% 3% 1% 3% 4% 3% 4% 6% 6% * 60,000 5% 4% 6% 80% 1% 70% * 50,000 60% * 40,000 50% 57% 67% 65% 66% 68% 66% * 30,000 40%
Slide 61: ALM Statement as of 31st Mar 2021 (As per IND AS)
ALM Statement as of 31st Mar 2021 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 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 2,526.13 676.01 1,966.35 1,131.79 23.60 0.07 104.28 0.00 6,428.24 Advances 1,976.90 1,445.31 1,545.82
Slide 62: Subsidiaries
Subsidiaries 62
Slide 63: Subsidiaries - FY21
Subsidiaries – FY21 •CHFL recorded a gross income of Rs. 37.15 crores in FY21 as •During the quarter CSEC focused on creating three distinct compared to Rs. 38.61 crores in FY20 and PBT of Rs.2.62 crores as business lines for enhancing revenues and productivity - broking, compared to Rs. -0.77 crore
Slide 64: Environmental Social Governance
Environmental Social Governance 64
Slide 65: Environmental, Social & Governance (ESG) at Chola
Environmental, Social & Governance (ESG) at Chola Accessibility FTSE Green MSME focus building ESG based lending norms Digitization First Time Borrowers (FTB) and New To Credit (NTC) customers Access to clean Corporate water and Governance sanitation Cybersecurity Innovation and Affordability Local
Slide 66: Environmental, Social & Governance (ESG) at Chola
Environmental, Social & Governance (ESG) at Chola Our Vehicle Finance business focuses on transport entrepreneurs, first time buyers and first time users ensuring financial inclusion of various marginalised sections of society; predominantly in geographies with limited presence of organized financie
Slide 67: Environmental, Social & Governance (ESG) at Chola
Environmental, Social & Governance (ESG) at Chola Employee wellbeing Diversity & Equal Education & Upskilling • Emotional & mental wellbeing Opportunity: Regular discussions are carried out to • Dedicated grievance hotline recognize improvement areas of • Special COVID insurance for all Chola respec
Slide 68: 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 69: Risk Management
Risk Management 69
Slide 70: 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 71: 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 72: 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 73: 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 74: Information Technology
Information Technology 74
Slide 75: Technology Updates
Technology Updates Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all Executed enhancement of connectivity infrastructure for Ongoing functional and technical enhancements for
Slide 76: COVID Updates
COVID Updates 76
Slide 77: Update on COVID test employees - as on 30th April 2021
Update on COVID test employees – as on 30th April 2021 Head Covid Data North East West South Total Office # Total no of emp Tested Positive till date 819 1495 979 1236 109 4638 # Total no of emp Tested Positive on 30.4.2021 23 15 7 19 1 65 # Emp Under Treatment 313 227 236 239 29 1044 # No of Hospit
Slide 78: Employee Support Programs
Employee Support Programs • Communication drives, webinars to educate employees on precautions to be taken, to cope up the current crisis. • Help Desk for hospitalization needs – a core team, trained are available 24*7 for employees to support for hospitalization needs – ambulance arrangement, beds.
Slide 79: ECL Methodology
Chola inter a better life ECL Methodology 79
Slide 80: 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 81: 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 82: 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 83: 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 84: 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 85: Thank You
} Chola ae Enter a better life UI STRONGER TOGETHER Collaborating for Success! THANK YOU [LO
Cholamandalam Investment and Finance Company — Investor Presentation (March 2021) on 6ix