Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (March 2018)
49 slides from Cholamandalam Investment And Finance's investor presentation, March 2018
Slide 1: Corporate Presentation – March 2018
Cholamandalam Investment and Finance Company Limited Corporate Presentation – March 2018
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 =a" CORPORATE OVERVIEW murugappa
Slide 4: Company Highlights
Company Highlights 1 Positioning 2 Exceptional Lineage Established in 1978, one of India’s A part of the ₹ 300 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 ₹ 227 bn1
Slide 5: Journey So Far
Journey So Far … FY 2017 • Total AUM crossed ₹ 369 bn Consistently profit making and dividend paying1 company since 1979 FY 2015 with a strong track record of dividends to shareholders • Brickworks • Infused Capital of upgraded to AA+ ₹ 5,000 mn through CCPS • Adopted GNPA FY 2013 Recognition at 90
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 ₹ 2,26,624 mn Finance Company and one of the leading financial provider for vehicle finance, (US$ 3,484 mn) business finance, home equity loans,
Slide 7: Spirit of Chola
SPIRIT OF CHOLA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 7
Slide 8: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (3) Branch Network 873 703 217 Himachal Pradesh (11) 534 534 203 Punjab (21) 222 94 Harayana (27) Uttarakhand (14) 167 199 164 208 Delhi (5) 180 144 162 102 172 83 103 Rajasthan (68) UP (59) Assam (23) 53 32 49 36 54 FY15 FY16 FY17 FY18 Bihar (34) Meghala
Slide 9: Company Performance – At a Glance
COMPANY PERFORMANCE – AT A GLANCE FY15 FY16 FY17 FY18 YoY Disbursements (₹ mn) Growth Vehicle Finance 93,627 1,23,830 1,44,710 2,05,400 42% Home Equity 30,434 34,764 30,559 31,740 4% MSME 2,490 3,253 6,663 6,291 -6% Home Loans 892 1,746 3,247 6,060 87% Agri , Trip Loans & Others 633 209 734 1,645 12
Slide 10: Company Performance – Portfolio Breakup
Company Performance – Portfolio Breakup Vehicle Finance AUM * (₹ mn) FY15 FY16 FY17 FY18 Growth TRACTOR, 7% CE, 4% Vehicle Finance OLDER VEHICLES, 13% HCV, 19% On Book 1,49,215 1,79,144 2,02,709 2,81,505 39% REFINANCE, 13% Assigned 27,171 21,859 33,597 33,550 0% Managed Assets 1,76,386 2,01,003 2,36
Slide 11: Chola – 4 Year Financial Summary
Chola – 4 Year Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *2,51,135 *4,28,791 13,995 *3,41,670 *1,85,913 31,740 *2,96,504 62,336 *1,63,803 *2,54,525 *1,28,076 5,208 10,644 30,559 41,643 62,633 4,015 34,764 35,482 30,434 2,05,400 93,627 1,23,830 1,44,710 2,19,043 2,54,861 2
Slide 12: Chola – 4 Year Financial Summary (Cont'd)
Chola – 4 Year Financial Summary (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 4.0% 9.7% 3.6% 3.4% 3.4% 8.7% 8.6% 7.9% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.7% 1.5% 4.6% 3.9% 3.6% 1.1% 1.1% 3.0% FY
Slide 13: Market Overview
Market Overview EPS ROE (%) (Rs. Per Share) 20.78 18.07 15.80 16.64 *23.3 *21.0 *19.0 *19.5 51,502 62.10 42,849 46.01 36,574 37.50 31,727 30.09 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 EPS * Price - Earnings Ratio Networth (Rs mn) ROE (%) Book Value Market Capitalisation (Rs. Per Share) (₹ mn) *4.4 *
Slide 14: Shareholding
Shareholding Shareholding Pattern Chola Finance - Share Price Growth 60% Institutions 20% 40% 20% Public 6% 0% -20% Promoters Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 FII 53% Chola Finance Sensex 21% Promoters share holding of 53.07% includes Mar 17 Jul 17 Sep 17 Dec 17 Mar 18 TI Financial Holdings Li
Slide 15: Performance Highlights – Q4FY18 & FY18
Performance Highlights – Q4FY18 & FY18 Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE* Q4-FY18 ₹ 80,071 mn ₹ 2,911 mn 4.99% ₹329.5 ₹75.51 23.57% 54% 33% 5% 20% 33% 11% Q4-FY17 ₹ 52,130 mn ₹ 2,195 mn 4.74% ₹ 274.2 ₹ 56.98 21.21% Disbursements Profit after Tax ROTA (PBT) Book Value EPS*
Slide 16: Asset Quality
ASSET QUALITY 8.0% 43.5% 45.0% 7.0% 39.7% 40.0% 36.8% 6.0% 34.8% 35.1% 33.1% 35.0% 5.0% 31.6% 4.0% 30.0% 3.0% 25.0% 2.0% 3.1% 2.0% 3.5% 2.1% 4.7% 3.2% 4.7% 3.2% 4.5% 2.9% 3.7% 2.3% 2.9% 1.7% 1.0% 20.0% 2014-15 2015-16 2016-17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 (5 months+) (4 months+) (3 months+) (3 mon
Slide 17: Highlights – FY18
Highlights – FY18 Disbursements Disbursement for FY18 stood at Rs. 2,51,135 mn, a growth of 35% YoY. PAT PAT for FY18 stood at Rs. 9,714 mn, a growth of 35% YoY. RoE Return on equity at 20.78% in FY18, a growth of 15% YoY. AUM Total assets under management has crossed Rs 429 bn Rating India Ratings
Slide 18: Business Overview
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Slide 19: Vehicle Finance
Enter a better life 19
Slide 20: Vehicle Finance - Industry
Vehicle Finance - Industry Trend in Domestic M & HCV Sales (in Units) Trend in Domestic Car & MUV (in Units) Sales CAGR @10% CAGR @ 8% Chola @ 31% 3,60,472 Chola @ 22% 47,74,279 2,38,513 2,64,958 2,38,205 32,60,897 30,19,001 25,59,571 27,56,204 1,76,639 Mar FY15 Mar FY16 Mar FY17 Mar FY18 Mar FY22 (
Slide 21: Vehicle Finance - Industry
Vehicle Finance - Industry Trend in Domestic LCV Sales (in Units) Trend in Domestic SCV Sales (in Units) CAGR @ 12% Chola @ 28% 6,11,037 CAGR @14% Ch ola @ 36% 3,88,863 3,88,325 3,07,982 3,31,704 2,30,238 2,88,682 1,91,286 1,72,683 1,72,754 Mar FY15 Mar FY16 Mar FY17 Mar FY18 Mar FY22 (E) Mar FY15 M
Slide 22: Vehicle Finance – Business Model & Positioning CV PV
Vehicle Finance – Business Model & Positioning Industry Industry Low Low Low Chola Low Chola CV Position PV Position Principal Operator > 50 Vehicles Salaried Large Operators 26- 50 R R R vehicles HCV E R E I T I T S Medium Operators 10 -25 – U S Self Employed U K HCV & LCV vehicles R K with Financi
Slide 23: Vehicle Finance – Business Model & Positioning Tractor CE
Vehicle Finance – Business Model & Positioning Industry Low Low Industry Low Low Chola Chola Tractor Position CE Position Large Farmer Super Strategic Strategic Captive Users / R Customer R R Prior Vehicles E R Captive Users / E I T I Prior Vehicles T S U S U K Medium Farmers Medium Retail Operator
Slide 24: 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 25: Vehicle Finance - Disbursement / Portfolio Mix – FY18
Vehicle Finance - Disbursement / Portfolio Mix – FY18 Well diversified across geography & product segments Disbursements - State wise Portfolio – State wise MP 5% AP 5% MP, 5% AP, 5% KARNATAKA 5% MAHARASHTRA KARNATAKA, 5% 13% MAHARASHTRA, KERALA 4% 13% KERALA, 4% Pondicherry 0% Pondicherry, 0% TELAN
Slide 26: Vehicle Finance - Financial Summary FY18
Vehicle Finance - Financial Summary FY18 Disbursements Assets Under Management (₹ mn) (₹ mn) 2,05,400 *3,15,054 *2,36,306 33,550 1,44,710 *2,01,003 1,23,830 *1,76,386 33,597 21,859 93,627 27,171 1,49,215 1,79,144 2,02,709 2,81,505 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 On Book Assigned * Total AUM
Slide 27: Vehicle Finance - Financial Summary FY18 (Cont'd)
Vehicle Finance - Financial Summary FY18 (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 4.1% 8.9% 3.8% 3.8% 8.5% 8.4% 3.6% 7.5% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 3.9% 3.2% 3.0% 2.0% 2.0% 1.7% 1.4%
Slide 28: Home Equity
Home Equity 28
Slide 29: Home Equity - Industry outlook
Home Equity - Industry outlook Net interest Margin (NIMs) have fallen across the industry due to high competition from Banks and HFCs and aggressive rates Yields have fallen 200 bps in the last 18 months due to high competition As the borrowing rates harden, the lending rates are likely stabil
Slide 30: 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 Fee Income adequate to cover origination & credit cost Leverage cross sell opportunities for addit
Slide 31: Home Equity – Q4 & FY18 Performance
Home Equity – Q4 & FY18 Performance In FY 18, Disbursements has grown by 4%, over last year. However the Disbursements business has grown by 48% in Q4, over same quarter last year The business has grown the Assets by 4% for FY 18(YoY). Pre-closures Asset under are being controlled by better enga
Slide 32: Home Equity - Financial Summary FY18
Home Equity - Financial Summary FY18 Disbursements Assets Under Management (₹ mn) (₹ mn) 34,764 30,434 30,559 31,740 *95,927 *99,966 *88,518 *72,799 19,784 29,036 28,786 8,312 64,487 68,734 66,891 71,179 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 On Book Assigned * Total AUM Income Profit Before Tax (₹
Slide 33: Home Equity - Financial Summary FY18 (Cont'd)
Home Equity - Financial Summary FY18 (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 5.4% 5.1% 4.4% 4.4% 1.3% 1.3% 1.2% 1.2% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 3.7% 1.0% 3.2% 0.7% 2.5% 2.2% 0.6% 0.5
Slide 34: Funding Profile
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Slide 35: CAR, Credit Rating and ALM Statement
CAR, Credit Rating and ALM Statement ALM Statement as on Mar 2018 ₹ mn Tier I Tier II Time Buckets Outflows Inflows Mismatch Cum Mismatch Capital Adequacy Ratio 21.24 1–14 Days 8,507 11,790 3,283 3,283 19.68 15–30/31 Days 3,367 4,191 824 4,108 18.64 18.36 Over 1–2 Months 19,612 19,639 28 4,135 8.22
Slide 36: Diversified Borrowings Profile
Diversified Borrowings Profile *3,19,023 ₹ mn *2,82,983 *2,42,068 *2,25,762 1,31,370 78,800 *1,94,752 77,072 35,910 1,11,200 23,010 15,306 13,813 1,01,965 27,035 6,631 4,975 27,560 1,21,380 1,16,092 22,038 12,449 1,02,992 39,687 48,466 26,087 26,087 28,337 31,587 34,737 Mar-15 Mar-16 Mar-17 Dec-17 M
Slide 37: Business Enablers
Business Enablers Cc --- TECHNOLOGY LEVERAGE Enter a better life 37
Slide 38: Technology Updates
Technology Updates Technology Infrastructure Systems of Record Delivering resilient & scalable environment Stable foundation for core products & services Environment tuning and automation to improve financial Design and launch MIS for usage by business and functional closing and reporting stakeh
Slide 39: Risk Management
Risk Management Risk Management Committee (RMC): Risk Management (contd..) RMC comprises Chairman, three Independent Directors and Post sanction monitoring helps to identify portfolio trends and the Managing Director besides the senior management as implement necessary policy changes members. •
Slide 40: Financial Performance
Financial Performance Enter a better life 40 Murugappa
Slide 41: Profit and Loss Statement – Quarterly
Profit and Loss Statement – Quarterly ₹ mn Growth % Growth % Particulars Q4FY17 Q3FY18 Q4FY18 Q-o-Q Y-o-Y Disbursements 52,130 67,611 80,071 18% 54% Closing Assets (Managed) 3,51,097 4,00,549 4,38,299 9% 25% Closing Assets (Balance Sheet) 2,88,464 3,36,678 3,75,963 12% 30% Operating Income 12,134 13
Slide 42: Profit and Loss Statement – Year to Date
Profit and Loss Statement – Year to Date ₹ mn Particulars FY15 FY16 FY17 FY18 Disbursements 1,28,076 1,63,803 1,85,913 2,51,135 Closing Assets (Managed) 2,61,906 3,03,624 3,51,097 4,38,299 Closing Assets (Balance Sheet) 2,26,423 2,61,980 2,88,464 3,75,963 Operating Income 36,912 41,937 46,603 54,258
Slide 43: Balance Sheet
Balance Sheet ₹ mn Particulars Mar-15 Mar-16 Mar-17 Mar-18 Equity and Liabilities Shareholders’ Funds 31,733 36,574 42,849 51,502 Current Liabilities 78,892 1,27,214 1,04,229 1,30,239 Non-current Liabilities 1,28,106 1,15,095 1,58,870 2,13,305 Total 2,38,732 2,78,883 3,05,948 3,95,046 Assets Non-cur
Slide 44: Subsidiaries
Subsidiaries Enter a better life 44 Murugappa
Slide 45: Subsidiaries
Subsidiaries ₹ mn ₹ mn Cholamandalam Distribution Services Ltd Cholamandalam Securities Ltd 131 126 134 197 115 153 144 128 57 61 47 51 32 45 16 22 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Income PAT Income PAT Wealth management services for mass affluent and affluent Broking services to HNIs and
Slide 46: NPA Provisioning Standards
NPA Provisioning Standards RBI Vehicle Home Other Norms Finance Equity Products 3 to 14.99 Months – 10% VF Prime, CE Home Equity & Bill Discounting, Trip Loan, 15 to 26.99 Months – 20% 3 to 5.99 Months – 10% Home Loan Rural Finance & Unsecured Loans 27 to 50.99 Months – 30% 6 to 23.99 Months – 25% 3
Slide 47: 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 48: 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 49: Thank You
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