Choice International Limited · NSE:CHOICEIN
Choice International — Q2 FY24 Earnings Presentation
47 slides from Choice International's earnings presentation, Oct 16, 2023
Slide 1: Cover letter to exchanges: Investor Presentation
Choice The Joy of Eomng REF: CIL/CC/58/2023-24 October 16, 2023 To, To, The Department of Corporate Services, The Department of Corporate Services, The BSE limited, The NSE Limited P. J. Towers, 5th Floor, Exchange Plaza Dalal Street, Plot No. C/ 1, G Block, Mumbai- 400 001 Sandra - Kurla Complex, S
Slide 2: Connecting People to Prosperity - Q2 & H1 FY24 Earnings Presentation
Choice The Joy of Eoming Connecting PEOPLE • to PROSPERITY Choice International Ltd. (BSE: 531358, NSE: CHOICEIN) 02 & Hl FY24 Earnings Presentation ==================~~ © Choice International Ltd.
Slide 3: Company Overview
Choice The Joy of Eoming Company Overview One of the leading financial conglomerates with over a decade's expertise providing tech-led services Ranked 5th amongst Strong Research Desk MSME focused lending Preferred advisor for PAN India Presence Fintech ecosystem top full service for both Institutio
Slide 4: Key Highlights
Choice The Joy of Eoming Key Highlights A diversified mix for sustainable business Broking & Distribution Stock Broking, Mutual Funds ••• • •• NBFC £ 27% •• £ 40% ... 914% ••••••••• • ]& • • ••••••••• Rs. 4.74 Bn Rs. 2,059 Mn 768K 195K+ •• • 10% •• • Demat Accounts Active Accounts Total Loan Book Re
Slide 5: Q2 FY24 Highlights
Q2 FY24 Highlights | Revenue (Rs. Mn) A 147% 1939 1395 1,393 984 785 Q2FY23 3 FY23 Q4 FY23 Qlry24 Q2FY24 Choice The Joy of Eaming EBITDA (Rs. Mn) { A197% 516 474 376 263 ry | Q2FY23 G3FY23 G4FY23 GIFY24 = G2FY24 PAT (Rs. Mn) { 264% 303 299 213 139 | i Q2FY23. G3FY23. Q4FY23 QIFY24 = Q2FY24 “Figures
Slide 6: H1 FY24 Highlights
Choice The Joy of Earning Hl FY24 Highlights I Revenue (Rs. Mn) II EBITDA (Rs. Mn) II PAT (Rs. Mn) I .A. ll2% .A. 155% .A. 222% 3,332 892 512 1,572 350 159 H1FY23 H1FY24 H1FY23 H1FY24 H1FY23 H1FY24 *Figures indicate YoY Increase © Choice International Ltd.
Slide 7: Q2 FY24 Highlights: Segment Revenue and PBT
Choice The Joy of Earning Q2 FY24 Highlights I Segment Revenue (Rs. Mn) I I Segment PBT (Rs. Mn) I 30 186 Q2FY23 Q3FY23 Q4FY23 QlFY24 Q2FY24 • Broking Services Advisory Services • NBFC Services Excludes: Excludes: · Unallocable revenue: QlFY24 - 42. Q2FY24 - 43 · Other Unallocable expenditure net of
Slide 8: StockBroking - Industry Overview
StockBroking - Industry Overview I ADTO (Rs. Lacs Crores) I Feb-23 209 Growing Industry ADTO with Dec-22 increasing share Sep-22 from semi-urban Jun-22 geographies and FY22 steady growth of FY21 retail participation Beneficial for Choice, being industry leader with: • Enhanced Revenue Streams throug
Slide 9: Stock Broking
Choice The Joy of Earning Stocl{ Brol{ing Expanding our PAN India reach and client demographic Increased penetration in unserved & I Steadily increasing client base I I underserved locations I 7% Geographical Distribution ... 188% of Clients • Tierl • Tierll • Tier Ill & 768 Below Majority young cli
Slide 10: Stock Broking
Choice The Joy of Earning Stocl{ Broking Expanding our PAN India reach and client demographic I Consistently growing Market Share & ADTO (Rs. Mn) II Broking & Distribution Segment Revenue (Rs. Mn) has peaked II Rank amongst full service braking firms* I _____0.32,~ 0.34% - 0.41% 0.38% 0.38% 10,316.9
Slide 11: Stock Broking - ChoiceFinX Super App
Choice The Joy of Earning Stocl{ Broking Expanding our PAN India reach and client demographic ChoiceFinX One Customer, One Platform - Financial Services Super App 44,520.65 160.50 19,921.65 86.80 AFGHANISTAN Simple User Interface ETF, A Jon9 1erm Best curated thematic baskets P Research J- lnvnl m(W
Slide 12: Stock Broking - Simple User Interface, Research, Curated Baskets
Choice The Joy of Earning Stocl{ Broking Simple User Interface, Research, In-app Curated Baskets, Diverse Investment Products @ • User Behavior-Driven Client Engagement: • ----- ;.; -----~~-;~~~-~~~-~~-~~-~~~~~~~-~;i:~;-~-~~~;~~-~~;·;~;~ugh user behavior analysis. Leveraging insights, we have 44 Mil
Slide 13: Stock Broking - Product Features
Choice The Joy of Earning Stocl{ Broking Simple User Interface, Research, In-app Curated Baskets, Diverse Investment Products < SENSEX 66.,496.01 ".. 0 Q. < Scalping Q. < Plan my Investm en t s 1Mhdur• 2MF~,;tu r • Mo nth ly SIP Amou nt 66,505.45 66.52.5.00 Expert Advisor Just a Amount )'DU're ~onn+
Slide 14: StockBroking - Allied Products
Choice The Joy of Earning StockBroking- Allied Products Maximizing growth of portfolio with a mix of products I Sustained Growth in Mutual Fund AUM I I Progressive increase in SIP Book I 59 4,362 Q2 FY23 Q3 FY23 Q4 FY23 Ql FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4FY23 Ql FY24 Q2FY24 • AUM (Rs. Mn) • SIP Book
Slide 15: StockBroking - Allied Products
Choice The Joy of Earning StockBroking- Allied Products Maximizing growth of portfolio with a mix of products I Folios expanded as investor participation surged I I Promising upward trend in clients I Key Technology upgradations ... 27% ... 30% Implemented Assisted Order 90 Flow to empower RMs and 3
Slide 16: Insurance - Industry Overview
Insurance - Industry Overview I Insurance Density (US$) 8,565 I Long Term Goal Insurance Premium • Premium per capita - India Density is increasing • World Average driven by Insurance 874 Brokers contribution Medium Term yet a long way to Goal go compared to Global Average and Leading Economies show
Slide 17: Insurance - Industry Overview: Key Growth Factors
Insurance -Industry Overview Key Growth Factors in the sector @---·- Myriad of Initiatives IRDAI has also undertaken various initiatives towards boosting the insurance penetration, such as permitting insurers to conduct video-based KYC, launching standardized insurance products and allowing insurers
Slide 18: Insurance Distribution
Choice The Joy of Earning Insurance Distribution Tapping into new territories, Propelled by surge of marquee clients I Exponential Growth in Insurance Premium II Enroute Mass Coverage I 75K+ Lives Covered ~ 307% ~ 248% 492 Claim 8,755 >95% Settlement Ratio Lead 68% Conversion Rate Preferred Partner
Slide 19: Insurance Distribution
Choice The Joy of Earning Insurance Distribution Tapping into new territories, Propelled by surge of marquee clients I Significant boost in employee productivity I 300% Yo Y increase in Corporate Insurance 163% .YoY .surge . 1nqu1nes generated in 02 FY24 5.40 Institutional Business Partnerships 01 F
Slide 20: NBFC - Industry Overview
NBFC - Industry Overview I Banks Vs NBFCs- YoY growth in Advances I NBFCs showing strong out-performance Banks despite multiple regulatory and economic changes 40 r------------1 ,---------- ri);;~~;ti;"tio-;,: ~---ll.aFs~--l -o~s;t"~f" ---Gl~b;l--l :Global Financial : : Taper I 33~ Crisis : : Tantru
Slide 21: NBFC
Choice The Joy of Earning NBFC Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes I Total Loan Book I I Retail Loan Book I Rs. 4,742 Mn Rs. 2,059 Mn Our Offerings MSME Commercial l{ey ~ Business Loan ~ Vehicle Finance CoiDpetencies First pre
Slide 22: NBFC
Choice The Joy of Earning NBFC Empowering MSMEs through retail lending tailored specifically for the dynamic semi-urban and rural landscapes I Growing Net Interest Margin I I Focused Retail Portfolio Mix I .A. Expanded by 448 bps Rs. 2,059 Mn. 2.11% 15.82% 30.40% 6.94% 6.09% 51.67% Q2 FY23 Q3 FY23 Q
Slide 23: NBFC - Robust Underwriting Processes
Choice The Joy of Earning NBFC Robust Underwriting Processes Real-time Credit Multiple Centralized Geo-tagging Cashless Bureau checks Database Checks Credit Team Operations of 100% branches In addition to Dedupe Check on KYC verification, IVR, via penny drop and centers and own Credit Bureau more th
Slide 24: NBFC - Product Offering
Choice The Joy of Eoming NBFC Wide range of product offering to cater multiple customer segments in priority sector Products Name Business Loans Business Loans Supply Chain Vehicle Loans Solar Loan (Unsecured) (Secured) Finance Ticket Size Upto Rs. 750K Upto Rs. 5 Mn Upto Rs. 10 Mn Upto Rs. 2.5 Mn U
Slide 25: Loan portfolio towards MSMEs and Green Energy
6% >93% 8% ~ Below25 • 25to35 • 36to50 % of Loans advanced % of Loan Portfolio Above 50 towards MSMEs & less than Rs. 1 Mn Green Energy @Choice International Ud.
Slide 26: Advisory Services - Industry Overview
Advisory Services - Industry Overview Infrastructure is much more than cement and concrete. I Road construction per day (Kms) I Infrastructure guarantees a better future. Infrastructure connects people. Shri. Narendra Modi Hon'ble Prime Minister of India FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Natio
Slide 27: Advisory Services
Choice The Joy of Eoming Advisory Services Government Infrastructure Consulting, Government Advisory, Investment Banking I Order Book (Rs. Bn) I I Statewise - Order Book I Ji.. 79% 4% 4% • Maharashtra 5.45 • Rajasthan • West Bengal 20% Others* *Chhattisgarh Goa Bihar Jharkhand Madhya Pradesh Odissa
Slide 28: Advisory Services
Choice The Joy of Earning Advisory Services Association with over soo Urban Local Bodies, 25 State Departments and 1o,ooo+ Panchayati Raj institutions. National Family Health Survey VI: In-depth Public Health Survey - 26K + households, • Diverse talent pool of lK+ professionals including across 1.3K
Slide 29: 3 States 100+ Districts 350+ Talukas
3 States ~ll0n1r:":T ~tT"'Iu '- sr.l'lo ll~lan ~ D!Mrddi .: talu~a ~ tMal \llllapo ~ Tllt,IEntrt.., ; VlDS&801Ptu~ ,: Tod...,. 100+ Districts Ylll~l!l Captured ~ b!U'j...- AnTiJ;a lil!p!n ,.,.,.Voitl NMipUI I~ N •purR~~ID/1 ,O.U,angu.b.Jdk"""" PUhl'P.e.gJiln G&khlroll Lowo- KQII•pur •\he.r hm'>Ojkll
Slide 30: Partnerships with Rajasthan State Govt. and PACS computerization in Bihar
Partnership with Rajasthan System Integration for computerization Advantages of PACS computerization State Govt.: of PACS in Bihar: Developing and executing a With our commitment to driving comprehensive strategy to bolster innovation and positive change in the the state's investment ecosystem, rura
Slide 31: Advisory Services - Key Clientele
Choice The Joy of Eoming Advisory Services - Key Clientele Niti Aayog --;flfct Jll1lPr -......... 1 oQ>ro .. ABon::ler Roa d ~ OrganlsnUon ............. URe.AN OIIVIit.O~Iflloiii...,. .,..I HCM.KI NC ~~~ SI' II:MeHT BSNL ICICI Securities ~ 'i;tl-""~ lm}ftferti ~ ~~ .... u ,Ja•h"••tm_j.,.,. Manllaran
Slide 32: Choice Connect
Choice The Joy of Earning Choice Connect To enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services I No. of Choice Business Associates (CBAs) I 75+ CBA Trainings Conducted during the 7K+ CBAs received .& 32x Pay
Slide 33: Choice Connect
Choice The Joy of Eoming Choice Connect To enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services ...,--- Helping Agents Focus on CBA Experience · Web, Andriod and iOS platform CBA Onboarding to work from anywhe
Slide 34: Way Forward
Choice The Joy of Earning Way Forward Focus on MSME Lending Lending platform with average ticket size of < Rs.l Mn Newer demographies ------------------------------------------------------------------ Targeting Tier Ill & below cities in India by leveraging our CBA network & scaling our branches Ele
Slide 35: Consolidated Financial Performance - Quarterly
Choice The Joy of Eoming Consolidated Financial Performance - Quarterly ~-----------------~ Particulars (Rs. Lakhs) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q Growth(%) Growth(%) Revenue from Operations 19,095 7,671 149% 13,791 39% Other Income 293 178 64% 135 117% Total Income 19,388 7,849 147% 13,926 39%
Slide 36: Consolidated Financial Performance - Quarterly
Choice The Joy of Eoming Consolidated Financial Performance - Quarterly ~~-----------------~\ Particulars (Rs. Lakhs) Q2 FY24 Ql FY24 Q-o-Q (%) Q2 FY23 Y-o-Y (%) Growth Growth Revenue from Operations 19,095 13,791 7,671 Other Income 293 135 178 Total Income 19.388 13,926 39% 7,849 147% Employee Bene
Slide 37: Consolidated Financial Performance
Choice The Joy of Eoming Consolidated Financial Performance Particulars (Rs. Lakhs) H1FY24 H1FY23 Y-o-Y(%) Growth Revenue from Operations 32,886 15,444 Other Income 427 276 Total Income 33,313 15,720 n2% Employee Benefit Expenses 10,103 4,333 Finance Costs 1,657 958 Depreciation & Amortisation Expen
Slide 38: Consolidated Balance Sheet
Choice The Joy of Eoming Consolidated Balance Sheet Particulars (Rs. Lakhs) 30.09.2023 31.03.2023 ASSETS Non Current Assets a) Property, Plant and Equipment 9,776 9,557 b) Capital Work-In Progress 18 c) Investment Property 159 159 d) Goodwill 825 825 e) Other Intangible Assets 1,985 2,089 f) Intangi
Slide 39: Consolidated Balance Sheet
Choice The Joy of Eoming Consolidated Balance Sheet Particulars (Rs. Lakhs) 30.09.2023 31.03.2023 EQUITIES AND LIABILITIES Equity a) Equity Share Capital 9.951 9,951 b) Other Equity 43,648 37,779 c) Non Controlling Interest 516 478 Total Equity 54,115 48,208 Liabilities Non Current Liabilities a) Fi
Slide 40: Board Members
Choice The Joy of Earning Board Members Board with extensive experience across businesses Investment Finance Securities CSR - --- -- - -- Audit Stakeholder Nomination & Rights Issue Risk Management Committee Committee Committee Committee Committee Relationship Remuneration Committee Committee Commit
Slide 41: Current Entity Structure
Choice The Joy of Eoming Current Entity Structure CHOICE IN Choice Equity Choice Choice Capital Choice Consultancy Choice Insurance Broking Finserv Advisors Services Broking 100% 98.05% 100% 100% 50% Choice Choice Corporate Choice Choice Choice Shreeyam Wealth Services Portfolio Connect Tech lab Sec
Slide 42: Environmental, Social and Governance
Choice The Joy of Eoming Environmental, Social and Governance Well-established 0 Financial services business. Implementing anti-bribery management system. Adopting policies to mitigate the company's carbon emissions and to reduce overall energy usage and waste management. 0 Providing and Disclosure
Slide 43: Geographical Presence
Choice The JCN of Eamng Geographical Presence Mumbai - (Head off~eel Agra Coimbotore Jamshedpur Mehsana Ratlam Ahmedabad-1 Daman Jhalawar Morbi Salem Ahmedabad-2 Dehradun-1 Jhunjhunu-1 Mumbai-Marol Secunderabad Ahmedabad-3 Dehradun-2 Jhunjhunu-2 Mysore Sikar-1 Ahmednagar Dhanbad Jodhpur Nagpur Sikar
Slide 44: Media Presence
Media Presence Extensive coverage by Television, Digital, Print and Social Media News and Print Media CNBC ~ BusiiiCssLinc TV"'IB HI E TI~I E,SOF 1~01 . \ lk CNBC Bloomberg PKOF'rr ThePrint 3lTCrT\if TII tdi'.(_'o:\mllc Tmt;: Business Standard FT Fl ANCJAL moneycontrol TIMES Follow Us on:- 02 FY24 H
Slide 45: Memberships and Certifications
Choice The Joy of Earning Memberships and Certifications Registered across exchanges in India Memberships And Registrations Certifications Auditors NSE 3SE M CX EXPERIENCE THE NEW METAL & ENERGY Trade with Trust MSKA & Associates Chartered Accountants • ~ NCDEX §] ~I llii!ID!D • · A Member firm of B
Slide 46: Disclaimer
Choice The Joy of Ecming Disclaimer Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Th
Slide 47: Thank you
"Thank you V