Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (June 2016)
47 slides from Cholamandalam Investment And Finance's investor presentation, June 2016
Slide 1: Corporate Presentation – June 2016
Cholamandalam Investment and Finance Company Limited Corporate Presentation – June 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 … Consistently profit making and dividend paying1 company since 1979 with a strong track FY - 2015 Infusion of record of dividends to shareholders CCPS of ₹ 5,000 mn FY - 2013 Total Assets under India Ratings Management Upgraded have crossed Sub-Debt from ₹ 200 bn AA- to AA Disburseme
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 ₹ 1,47,787 mn Finance Company and one of the leading financial provider for vehicle finance, (US$ 2,186 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 Institutions, Chola Finance - Share Price Growth 13% 55% Public, 5% 35% 15% -5% FII, 29% -25% Promoters, Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 53% Chola Finance Sensex Promoters share holding of 53.13% includes Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Tube Investme
Slide 11: Corporate Overview
Corporate Overview Business Segments Overview Portfolio Breakup AUM * (₹ mn) FY14 FY15 FY16 Q1FY16 Q1FY17 YoY Growth Vehicle Finance Vehicle Finance OLDER TRACTOR, 9% CE, 2% On Book 1,41,787 1,49,215 1,79,144 1,56,520 1,87,650 20% VEHICLES, 13% HCV, 16% Assigned 28,857 27,171 21,859 21,749 20,576 -5
Slide 12: Corporate Overview
Corporate Overview FY14 FY15 FY16 Q1FY16 Q1FY17 YoY Disbursements (₹ mn) Growth Vehicle Finance 1,01,281 93,627 1,23,830 25,877 33,261 29% Home Equity 28,097 30,434 34,764 8,307 9,914 19% Gold - 618 - - - - MSME 1,371 2,490 3,253 537 1,648 207% Home Loans 393 892 1,746 335 745 122% Agri – 15 209 19
Slide 13: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (1) Branch Network 529 534 534 534 94 94 Punjab (26) Himachal 153 167 Pradesh (5) 164 164 Uttarakhand (7) 153 180 Harayana (12) 144 144 Delhi (8) 123 102 68 83 83 53 Rajasthan (48) UP (32) 32 32 49 49 Assam (9) FY14 * FY15 FY16 Q1FY17 Bihar (14) A B C D E
Slide 14: Chola - Financial Summary
Chola - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) 1,63,803 5,208 2,96,504 3,08,256 1,31,142 1,28,076 2,60,593 1,764 4,015 34,764 2,54,525 41,094 2,32,534 41,643 28,097 30,434 35,482 29,304 40,874 45,608 35,075 2,433 891 9,914 1,01,281 93,627 1,23,830 8,307 1,91,661 2,19,0
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% 3.7% 7.9% 3.4% 3.4% 3.4% 3.4% 7.7% FY14 FY15 FY16 Q1FY16 Q1FY17 FY14 FY15 FY16 Q1FY16 Q1FY17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.7% 1.8% 1.8% 0.3% 3
Slide 16: Performance Highlights – Q1FY17 Vs Q1FY16
Performance Highlights – Q1FY17 Vs Q1FY16 Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE Q1-FY17 ₹ 45,608 mn ₹ 1,657 mn 3.8% ₹ 244.8 ₹ 42.6 17.8% 30% 50% 29% 16% 40% 29% Q1-FY16 ₹ 35,075 mn ₹ 1,102 mn 2.9% ₹ 210.5 ₹ 30.4 13.7% * EPS is annualised 16
Slide 17: Portfolio Performance
Portfolio Performance 3.6% 3.6% 3.1% 3.3% 2.0% 2.1% 2.1% 2.1% 1.9% 1.4% 1.5% 1.1% 1.1% 1.2% 0.7% 2013-14 2014-15 2015-16 Q1FY16 Q1FY17 (6months+) (5 months+) (4 months+) (5 months+) (4 months+) GNPA Provision NNPA Note: GNPA is presented at 4 months overdue. Provision to meet 3 months overdue alread
Slide 18: Update: Q1FY17
Update: Q1FY17 Disbursements Disbursement for Q1FY17 stood at Rs. 4561 Cr, a growth of 30% YoY. PAT PAT for Q1FY17 stood at Rs. 166 Cr, a growth of 50% YoY. RoE Return on equity at 17.8% in Q1FY17, a growth of 30% YoY. Rating ICRA has revised its outlook from Stable to Positive in July 2016 Provisio
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) 53,728 54% 48% 47% 62% 46,296 35,956 21% 21% 20% 23,939 22% 25% 31% 32% 15% Jun-13 Jun-14 Jun-15 Jun-16 HCV SCV/3W Pick ups LCV Jun-13 Jun-14 Jun-15 Jun-16 Trend in Domestic LCV Sales (in Units) Trend in
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 – Q1FY17
Vehicle Finance - Disbursement / Portfolio Mix – Q1FY17 Well diversified across geography & product segments Disbursements - State wise Portfolio – State wise MP 6% AP 5% KARNATAKA 5% MP 6% AP 6% MAHARASHTRA KARNATAKA 5% 12% KERALA 4% MAHARASHTRA Pondicherry 0% 11% KERALA 4% TELANGANA 3% Pondicherry
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 SCV segment Disbursements Assets Under Management (₹ mn) (₹ mn) 1,23,830 2,01,003 2,08,226 1,70,645 1,76,386 1,78,269 20,576 1,01,281 21,859 93,627 27,171 21,749 28,
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% 8.1% 8.1% 7.5% 3.8% 3.7% 3.8% 7.1% 3.5% 3.6% FY14 FY15 FY16 Q1FY16 Q1FY17 FY14 FY15 FY16 Q1FY16 Q1FY17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.7% 3.0% 3
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 30,434 88,518 92,470 28,097 76,806 72,799 58,604 19,784 20,518 8,312 7,554 12,016 9,914 8,307 46,588 64,487 68,734 69,251 71,952 FY14 FY15 FY16 Q1FY16 Q1FY17 FY14 FY15 FY16 Q1FY16 Q1FY17 On Book Assigned Incom
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% 5.1% 5.1% 4.5% 1.6% 1.3% 1.2% 1.2% 1.1% FY14 FY15 FY16 Q1FY16 Q1FY17 FY14 FY15 FY16 Q1FY16 Q1FY17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 0.7% 0.8% 0.04%
Slide 32: Funding Profile
Funding Profile 32
Slide 33: CAR, Credit Rating and ALM Statement
CAR, Credit Rating and ALM Statement ALM Statement as on Jun 2016 ₹ mn Cum Time Buckets Outflows Inflows Mismatch Tier I Tier II Mismatch Capital Adequacy Ratio 1–14 Days 4,517 9,296 4,779 4,779 21.24 20.56 15–30/31 Days 7,993 8,032 39 4,819 19.68 18.73 Over 1–2 Months 8,618 8,744 126 4,944 17.23 8.
Slide 34: Diversified Borrowings Profile
Diversified Borrowings Profile ₹ mn 2,39,475 2,25,762 2,06,065 1,94,752 1,80,932 1,12,542 1,11,200 99,640 91,812 1,01,965 24,710 5,647 27,560 18,065 11,386 4,975 12,449 10,760 26,006 22,038 48,466 51,513 64,750 35,654 39,687 21,813 26,087 26,087 26,087 26,087 Mar-14 Mar-15 Mar-16 Q1FY16 Q1FY17 Tier
Slide 35: Business Enablers
--- TECHNOLOGY LEVERAGE
Slide 36: Human Resources
Human Resources Employee Strength of Chola as on 30th Jun 2016 - 13623 On roll 21.6% Off roll 78.4% We have 2940 on roll employees which includes 221 professionals (CA,CS, ICWA, Lawyers and engineers) and 485 MBAs 36
Slide 37: 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 38: 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 39: Financial Performance
Financial Performance nier a better life 39 Murugappa
Slide 40: Profit and Loss Account
Profit and Loss Account ₹ mn Particulars FY14 FY15 FY16 Q1FY16 Q1FY17 Disbursements 1,31,142 1,28,076 1,63,803 35,075 45,608 Operating Income 32,628 36,912 41,937 9,860 11,085 Finance Charges 17,711 19,604 20,508 4,958 5,481 Net Income Margin 14,918 17,308 21,429 4,902 5,604 Expenses 6,582 7,489 8,4
Slide 41: Balance Sheet
Balance Sheet ₹ mn Particulars Mar-14 Mar-15 Mar-16 Jun-15 Jun-16 Equity and Liabilities Shareholders’ Funds 22,947 31,733 36,574 32,844 38,239 Current Liabilities 92,760 78,892 1,27,214 85,902 1,25,328 Non-current Liabilities 99,761 1,28,106 1,15,095 1,33,020 1,32,491 Total 2,15,468 2,38,732 2,78,8
Slide 42: Subsidiaries
Subsidiaries & Chola 2G Enter a better life 42 Murugappa
Slide 43: Subsidiaries
Subsidiaries ₹ mn ₹ mn Cholamandalam Distribution Services Cholamandalam Securities Ltd Ltd 144 128 131 126 118 80 32 27 36 47 57 16 6 47 36 1 27 7 11 (4) FY14 FY15 FY16 Q1FY16 Q1FY17 FY14 FY15 FY16 Q1FY16 Q1FY17 Income PAT Income PAT Wealth management services for mass affluent and affluent custo
Slide 44: NPA Provisioning Standards
NPA Provisioning Standards RBI Norms Vehicle Home (as on 31st Mar 2016) 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 M
Slide 45: 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 46: 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 47: Thank You
ey ae & Chola = Enter a better life Thank You it murugappa
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