Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q2 FY24 Earnings Presentation
70 slides from Cholamandalam Financial's earnings presentation, Nov 14, 2023
Slide 1: Exchange filing cover letter: Presentation to Analyst / Investor
November 14, 2023 The Manager The Secretary Listing Department BSE Limited, National Stock Exchange of India Ltd 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Fort, Plot No.C-1, Block G Bandra-Kurla Complex Mumbai 400 001 Bandra (E) Mumbai 400 051 Symbol : CHOLAHLDNG
Slide 2: Corporate Presentation – Q2-FY24
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q2-FY24 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 123 Years of $9.0 $38.4 Turnover cap (as on 30th Years Existence B B (FY23) Sep 2023) Listed 3 Sectors 29+ Businesses 10 Companies 50 Geographical 113 Manufacturing 73,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 36,090 84,048 1,10,827 Turnover (Cr.) 35,171 19,032 19,124 PAT(Cr.) 1,541 1,739 2,917 Market Cap(Cr.) 33,717 9,284 22,368 57,707 1,00,148 NA 21,747 Turnover (Cr.) 29,587 5,584 4,601 14,431 12,884 6,15
Slide 5: 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." 4
Slide 6: Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 45.34% 60.00% 49.50% Cholamandalam Cholamandalam MS Investment and Cholamandalam MS General Insurance Risk Services Limited Finance Company Company Limited Limited (CIFCL) (CMSRSL) (CMSGICL) • Subsidiary (as per Ind AS) • Join
Slide 7: Shareholding Pattern
Shareholding Pattern Institutional Holders (More than 1%) Shareholding Pattern Top Domestic Institutional Holdings as of September 30, 2023 * ICICI Mutual Fund * Aditya Birla Mutual Fund * HDFC Mutual Fund * Nippon India Mutual Fund 15.15% * Sundaram Mutual Fund * Axis Mutual Fund 12.67% 47.37% Top
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Rs.in Cr. Revenue Profit after tax EPS (Rs.) Revenue Profit after tax EPS (Rs.) Q2 FY24 6,372 888 22.41 H1 FY24 12,087 1,680 42.20 46% 46% 49% 45% 41% 23% Q2 FY23 4,355 606 15.07 H1 FY23 8,318 1,189 29.32 7
Slide 9: Performance Highlights - Consolidated
Performance Highlights - Consolidated Profit After Tax (Rs.in crs) Profit After Tax (Rs. in crs) 1,000 1,800 900 1,600 1,680 888 800 1,400 1,483 700 773 1,200 600 1,189 606 1,000 1,125 500 563 800 400 600 300 200 400 111 100 40 200 4 3 192 60 5 4 - - CIFCL CMSGICL Others CFHL Consol CIFCL CMSGICL Ot
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone CIFCL H1 FY24 H1 FY23 Particulars (Rs. in Cr) H1 FY24 H1 FY23 Disbursements (Rs. in Cr) 41,557 27,953 As of As of Income 31.62 30.62 30-Sep-2023 31-Mar-2023 Expenses 3.07 4.73 Asset Under Management (Rs. in Cr) 1,33,775 1,12,782 Profit Before Tax 28.
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars September 30, 2023 March 31, 2023 Owned Funds (A) 1,249.68 1,226.02 Adjusted Networth (B) 20,444.92 14,387.29 Risk Weighed Assets ( C) 1,280.99 1,280.89 Outside Liabilities (D) 53.15 52.39 Net assets (E) 1,280.04 1,280.23 Investment in equity
Slide 12: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 13: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 41,557 16% 19% 23% 21% 23% 23% 5% 9,625 5% 7% 5% 7% 15% 7% * 27,953 15% 3,029 13% 15% 15% 14% * 21,542 5,254 5,872 * 20,015 1,354 * 14,623 5,044 * 13,329 4,581 4,282 1,454 3,132 1,575 64% 2,121 57% 58% 61% 56% 2,679 3,192 23,032 54% 611 743 2,036
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,24,246 * 1,14,796 4% 10% 5% 10% 13,327 7% 8% 11,337 8% 9% 10,801 9,528 22% 21% * 87,668 * 81,925 20% 20% 4,765 24,721 2,937 22,866 6,454 5,938 17,675 18,843 68% 66% 75,396 62% 61% 71,065 55,37
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 1489 *15,773 *15,027 165 165 *12,849 1129 *12,316 164 164 762 726 14,862 15,609 566 563 12,152 12,684 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Reserves and Surplus Equity Share Capital 14
Slide 16: Chola – Stage 3 Assets Trend
Chola –Stage 3 Assets Trend Chola 47.32% 50.00% 46.00% 45.40% 12.00% 45.00% 10.00% 41.48% 40.96% 40.69% 39.67% 38.80% 40.00% 8.00% 5.85% 35.00% 6.00% 4.37% 4.16% 2.27% 3.84% 3.51% 4.00% 3.01% 3.06% 30.00% 2.96% 1.73% 1.69% 1.59% 1.44% 2.00% 1.38% 1.39% 1.40% 25.00% 3.58% 2.64% 2.47% 2.25% 2.07% 1.62
Slide 17: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 18: Vehicle Finance: Q2 FY24 & H1 FY24 Performance
Vehicle Finance: Q2 FY24 & H1 FY24 Performance • Disbursements grew by 38% in Q2 FY24 to Rs. 11,731 Cr & by Disbursements 35% in H1 FY24 to Rs. 23,032 Cr as compared to Q2 FY23 & H1 FY23 respectively. Assets under • AUM has grown by 31% YoY. management Loss and • Loan losses dropped to 1.7% in Q2 FY
Slide 19: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light commercial vehicle segment had a ▪ Increased demand for Light commercial vehicle will growth of 7% in Q2 FY’24 & 3% in H1 FY’24 with help us garner higher market share, we will continue an all-time high sales
Slide 20: Sector outlook – Vehicle Finance business (2/3)
Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position ▪ The Passenger vehicle (Car & MUV) segment ▪ We will continue to focus in this segment in line had a growth of 5% in Q2 FY’24 and 7% in H1 with market demand especially in smaller towns FY’24 with an all-time high sales
Slide 21: Sector outlook – Vehicle Finance business (3/3)
Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position ▪ The Construction Equipment segment had a ▪ Our exposure in this segment is around growth of 29% in Q2 FY’24 and 22% in H1 7% at a portfolio level. We follow a FY’24. This segment is aided by improvement in guarded appr
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year CAGR Chola YoY growth rate -2% (in Units) Chola 4 year (in Units) Chola YoY growth rate 9% 2% 65744 CAGR 16% Industry YoY growth 183522 rate -8% CAGR @ 5% 51512 47299 CAGR @ 10% 44065 121907 38446 113953 75254
Slide 23: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales Chola 4 (in Units) year CAGR Chola YoY growth rate 34% Chola 4 year Chola YoY growth rate 9% (in Units) CAGR 79% 29% 104543 1655479 CAGR @ 10% 76603 CAGR @ 10% 1027922 1076397 64913 726938 743410 42366 19127 Q2 FY21
Slide 24: 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 25: 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 26: Vehicle Finance - Disbursement/Portfolio Mix – Q2 FY24
Vehicle Finance - Disbursement/Portfolio Mix – Q2 FY24 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadra and Dadar and Nagar Haveli Nagar Haveli & & Daman and MP Daman Diu AP MPand Diu AP Karnataka Karnataka Maharashtra 0.04% 0.04% Maharashtra Gujarat 5% Keral
Slide 27: Vehicle Finance - Disbursement/Portfolio Mix – Q2 FY24
Vehicle Finance - Disbursement/Portfolio Mix – Q2 FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise HCV 3 Wheeler 3 Wheeler CE HCV CE 0.3% 1% 5% 7% LCV 5% 6% 16% 2 Wheeler 2 Wheeler 6% 9% LCV 21% MUV 10% Used Vehicles MUV 27% Used Vehicles 9% CAR 12
Slide 28: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 12,190 * 11,731 5% * 11,301 6% 7% 7% 6% 882 5% 627 6% 5% 5% * 10,446 1,053 653 640 9% 584 16% 687 19% 17% 17% 560 1,860 18% * 8,502 2,211 1,936 10% Yield 9% Low 468 1,816 1,134 9% 9%
Slide 29: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 75,396 6% 7% 7% 7% 7% * 71,065 4,906 7% 7% 7% 7% 7% * 66,938 4,721 5,058 * 61,285 4,487 4,878 * 57,606 21% 21% 21% 21% 21% Medium Yield Low Yield 3,990 4,742 15,583 3,666 4,126 14,814 4,015 1
Slide 30: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *75,396 23,032 *71,065 97 146 *57,606 17,063 *55,376 417 547 11,731 75,299 11,301 70,918 8,562 8,502 54,829 57,189 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 F
Slide 31: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 5,187 1,000 948 4,146 2,690 2,498 480 501 499 468 2,133 2,013 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 30
Slide 32: Loan Against Property
Loan Against Property ary Colours 31
Slide 33: Loan Against Property – Q2 FY24 & H1 FY24 Performance
Loan Against Property – Q2 FY24 & H1 FY24 Performance • Disbursements grew by 42% in Q2 FY24 to Rs. 3,192 Cr & by 37% Disbursements in H1FY24 to Rs. 5,872 Cr as compared to Q2 FY23 & H1 FY23 respectively. Asset under • AUM has grown by 31% YoY. management • Loan losses dropped to -0.10% in Q2 FY24 f
Slide 34: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL estimates the LAP segment to experience growth • Chola’s LAP team is currently focusing on at a rate of 10-12% for FY24, on back of favorable increasing its market share backed by consistent economic conditions and grad
Slide 35: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 24,721 * 22,866 950 5,872 1,030 * 17,675 * 18,843 1,318 1,418 4,282 23,771 3,192 21,836 2,679 17,525 2,246 16,257 2,036 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24
Slide 36: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,460 458 378 1,043 757 704 234 224 200 540 178 503 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 35
Slide 37: Home Loans
Home Loans Primary Colours 36
Slide 38: Home Loans – Q2 FY24 & H1 FY24 Performance
Home Loans – Q2 FY24 & H1 FY24 Performance • Disbursements grew by 112% in Q2 FY24 to Rs. 1,575 Cr & by Disbursements 124% in H1FY24 to Rs. 3,029 Cr as compared to Q2 FY23 & H1 FY23 respectively. Asset under • AUM have grown by 67% YoY. management • Loan losses dropped to 0.4% in Q2 FY24 from 0.5% i
Slide 39: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position • The overall growth in HFCs is expected to remain at • Chola continues to consolidate its position across 12-14% in FY24 branches pan-India while also targeting expansion in newer underpenetrated geographies • GNPAs of AHFCs are likely t
Slide 40: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 3,029 *10,801 392 *9,528 413 *6,454 *5,938 478 1,575 500 1,454 10,409 1,354 9,115 5,976 5,438 743 611 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 On Book Assign
Slide 41: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 183 742 158 426 96 398 87 344 74 85 222 204 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 40
Slide 42: Funding Profile
Funding Profile <&} Chola aXe 41 Murugappa Financial Holdings
Slide 43: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 19.07 19.62 17.13 17.44 16.62 3.93 3.13 2.35 2.30 1.96 15.14 16.49 14.78 15.14 14.66 FY21 FY22 FY23 Q1 FY24 Q2 FY24 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Launched a composite QIP issue of equi
Slide 44: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 79,321 * 89,305 * 97,356 * 1,08,140 * 1,19,470 4% 6% 4% 6% 2% 7% 3% 3% 3% 7% 3% 9% 10% 5% 2% 15% 16% 4% 4% 4% 4% 3% 2% 18% 4% 5% 18% 16% 15% 14% 58% 52% 54% 49% 49% 5% 4% 5% 5% 4% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 T
Slide 45: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type * 79,321 * 89,305 * 97,356 * 1,08,140 * 1,19,470 7% 9% 10% 15% 16% 1%3% 1% 3% 4% 3% 1% 3% 3% 3% 1% 3%3% 0.4% 2% 66% 64% 65% 61% 60% 1% 1% 1% 1% 5% 6% 1% 6% 6% 6% 9% 10% 8% 7% 8% 3% 3% 3% 3% 3% Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24
Slide 46: ALM Statement as of 30th Sep 2023 (As per IND AS)
ALM Statement as of 30th Sep 2023 (As per IND AS) (₹Cr) ALM snapshot as on 30th Sep 2023 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 6,843.82 472.69 2,210.54 3.10 707.40 600.00 196.18 - 11,033.73 Advances 4,140.98 3,942.35 3,440.65 11,
Slide 47: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited Financial data in this section is as per IGAAP 46
Slide 48: Chola MS General Insurance: Brief Overview
Chola MS General Insurance: Brief Overview Murugappa Group Mitsui Sumitomo Insurance, Japan ◼ Murugappa Group - India's leading business ◼ Mitsui Sumitomo Insurance - part of MS&AD – one of conglomerate the largest insurance group in the world. ◼ Founded in 1900, Headquartered in Chennai, the INR 74
Slide 49: Key Financial Parameters (Rs. Crs)
Key Financial Parameters (Rs. Crs) Particulars – In Rs. Cr FY'22 FY'23 Q2 FY'23 Q2 FY'24 H1 FY'23 H1 FY'24 Gross Written Premium$ 4854 6200 1487 2006 2787 3708 Growth 10.3% 27.6% 20.9% 34.9% 30.6% 33.0% NWP 3572 4610 1097 1368 2029 2592 NEP 3437 4019 980 1274 1901 2447 U/W Results -433 -601 -168 -13
Slide 50: LOB Wise - Quarterly Growth Trends of Multi-line Insurers
LOB Wise - Quarterly Growth Trends of Multi-line Insurers Other Particulars Months Fire Comml Motor Health PA Crop Others Total Lines Industry growth in Q2 higher Q1 FY'24 5.9% 8.2% 20.9% 18.5% 31.3% 16.7% 19.4% 16.5% aided by growth in health Industry Q2 FY'24 7.4% 4.1% 13.9% 28.9% 11.7% 23.0% 23.4
Slide 51: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth H1 FY’24 Solid GDPI* growth over years (CAGR FY2016 - FY 2023 = 14.1% (With Crop); 15.0% (Without Crop) Rs In Crs Growing 6156 Market Share 4398 4388 4824 4103 4429 3133 3670 2452 6158 2313 2851 3602 3992 4379 4386 4824 3381 5.5% 139 282 501
Slide 52: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) Includes RI Inwards FY’22 Excluding exceptional item RoNW @ 9.13% 6200 34.9% 9.2% 33.0% 700 0 40. 0% 600 0 30.6% 35. 0% 4854 26.7% 30. 0% 7.0% 20.9% 500 0 400 0 10.3% 3708 25. 0% * 2787 20. 0% 3.9% 4.2% 3.6% 300 0 2006 15. 0
Slide 53: Capital efficiency - No Capital Infusion Since FY'15
Capital efficiency - No Capital Infusion Since FY’15 Capital Invested - Net Worth Rs In Crs Net Worth 1962 2160 2035 2324 1520 1718 1593 1882 442 442 442 442 FY'22 FY'23 Q2 FY'23 Q2 FY'24 Capital Invested Reserves ▪ Accumulated profits @ 81% of Net worth (Rs. 2324 Crs) as on Sep 2023 ▪ Total Capital
Slide 54: Consistent Operating Metrics
Consistent Operating Metrics Particulars 2020-21 2021-22 2022-23 H1 FY’24 Number of Customers (Live Customer) No in Lacs 165 254 336 415 Number of policies issued No in Lacs 63 99 121 62 Market Presence(Branch + CIE + VO) No’s 593 638 604 612 Bank Branches No’s 37000+ 34000+ 34000+ 34000+ Motor OD C
Slide 55: Claims Ratio (%)
Claims Ratio (%) Line of Business FY'22 FY'23 Q2 FY'23 Q2 FY'24 H1 FY’23 H1 FY’24 Motor OD 69.8% 71.7% 70.5% 72.7%# 73.0% 73.8% Motor TP 63.4%* 77.0% 76.5% 76.9% 77.0% 77.0% Motor Total 65.1% 75.6% 74.9% 75.7% 76.0% 76.1% Health, Travel & PA 117.1% 66.6% 71.4% 66.5% 63.4% 65.4% Crop NA NA NA 103.1%
Slide 56: Investment Book Overview (Rs In Crs)
Investment Book Overview (Rs In Crs) Category Mar-21 Mar-22 Mar-23 Sep-23 Govt Securities 7663 8290 9579 9656 PSU / Corporate Bonds 2253 2834 4483 4900 Equity 76 151 321 539 Others 1041 1229 300 393 Grand Total 11034 12504 14683 15487 Yield with profit on sale 7.6% 6.8% 6.5% 6.8% Yield without profi
Slide 57: Dominance in Motor, Diversification Underway
Dominance in Motor, Diversification Underway Motor Market Share (Largest GI Segment) Strategized diversification across Motor eco-system GI Market Share by GWP 74.3% 83.0% 74.3% 65.1% 75.6% 76.1% 5.3% 5.5% 4.6% 4.9% 2.3% 10.1% 16.4% 16.8% 4.7% 4.7% 23.1% 19.6% 75.6% 44.6% 41.7% 67.9% 58.2% 47.6% 35.
Slide 58: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment 9.4% 8.9% 9.5% 10.6% 13.0% 13.3% 13.6% 13.6% 6.3% 6.8% 6.3% 6.2% 71.2% 71.0% 70.6% 61.7% 7.9% FY'21 FY'22 FY'23 H1 FY'24 Crop Motor PA & Others Commercial Health ▪ Focus on Commercial business (including SME business) mix continues @ 14% ▪ Heal
Slide 59: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs 415 Commercial 336 18.9% 254 165 Retail 81.1% FY'21 FY'22 FY'23 H1 FY'24 Significant growth in retail oriented policies Geographic Presence – Mix % # of
Slide 60: Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream
Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream Channel wise Mix% 8.0% 6.5% 6.3% 5.1% 5.9% 4.4% 5.2% 5.1% 5.4% 13.5% 20.9% 25.0% 32.5% 40.4% 38.4% 34.1% 35.9% 34.9% 31.1% 27.6% 32.6% 27.5% 21.2% 18.1% 14.6% FY'20 FY'21 FY'22 FY'23 H1 FY'24 Banks Corporate Agent Captive* B
Slide 61: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Other Tied Channels PSU Banks + New Bank Tie ups (CIE + Chola Finance + Coromandel) (IBL, NBFC, OEM) 27.6% of H1 FY’24 GWP 8.9% of H1 FY’24 GWP 49.9% of H1 FY’24 GWP GWP Rs In Crs GWP Rs In Crs GWP Rs In Crs 662 2325 1913 1833 1
Slide 62: Tech Enablers across the value chain
Tech Enablers across the value chain of functionalities to enable better user experience and productivity Products & Services Scalable Platforms • ~94% of monthly policy issuance is • Microservices based platform • Health sourcing platform with through system integrated channels for transactions at
Slide 63: Glimpse of new Tech & Digital Capabilities
Glimpse of new Tech & Digital Capabilities across the value chain leading to superior partner and customer experiences Distribution build Sales fulfilment Underwriting Taylor UW OCR Phoenix Tele UW 100% 100% 2 min 75% 100% Digital Onboarding Policy issuance Instant policy STP issuance Digitization o
Slide 64: Indian General Insurance: Large addressable market
Indian General Insurance: - Large addressable market Significantly underpenetrated Premium as a % GDP Non-Life Insurance Density (Premium per capital) (CY22) (US$) (CY22) (US$) 9.0 6868 5.8 2.4 2.3 2.2 1.9 1.9 1836 1.0 1111 748 0.6 0.5 234 168 149 87 26 22 India China Indonesia Brazil USA UK Japan R
Slide 65: Industry has Witnessed Strong Growth Over the last 15 Years
Industry has Witnessed Strong Growth Over the last 15 Years General Insurance Gross Premium has grown >10x over the last 15 years (Rs In Cr) Growth of 14.9% CAGR (Last 15 Years) = 14.9% over H1 FY’23 256912 220772 198724 170036 189302 150572 143802 128213 69086 77541 84686 96394 38400 47355 58357 16
Slide 66: Motor & Retail Health are the Largest GI Segment
Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace Motor accounts for 37.8% share of the overall GWP Motor Claim ratio for Private General Insurers (single largest segment) (Private Motor Insurance– GWP Rs in Crs (Private Motor Insurance– Claims Ratio) CAGR: 14% 83%
Slide 67: Favorable Regulations Aiding Growth
Favorable Regulations Aiding Growth Amendment to Acts expected to improve profitability and growth across segments Growth Oriented Requiring Tweaks Impending Mandatory Long term Third Party Insurance Crop Insurance Courts’ recognition of amended MV Act 3 years for Cars, 5 years for 2W PMFBY fina
Slide 68: Contact us
Contact us Cholamandalam Financial Holdings Limited (CFHL), Dare House, No. 234, NSC Bose Road, Parrys, Our registered Chennai 600001. office Land Line: 044–4090 7638 / 2530 6486 http://www.cholafhl.com Email-ID Krithika E - Company Secretary–krithikae@cfhl.murugappa.com 67
Slide 69: 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 Financial Holdings Ltd and its subsidiaries. There can be no assur
Slide 70: Thank You
Thank You <> Chola 2% Financial Holdings murugappa
Cholamandalam Financial Holdings — Q2 FY24 Earnings Presentation on 6ix