Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (June 2020)
93 slides from Cholamandalam Investment And Finance's investor presentation, June 2020
Slide 1: Corporate Presentation - June 2020
CORPORATE PRESENTATION - JUNE 2020
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. Risk performance 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 $8.34 Turnover cap (as on Years Existence B B (FY20) 30th Jun 2020) 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.) 26,986 14,929 21,044 Turnover (Cr.) 17,058 7,704 13,249 PAT(Cr.) 1,022 572 1,291 Market Cap(Cr.) 22,083 4,903 5,277 8,353 15,498 NA 5,546 Turnover (Cr.) 13,091 3,967 2,569 4,520 8,713 4,398 91 PAT(Cr.
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 14 lakh + customers 25,483 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 14 lakh plus customers till date 200 plus employees in year 2000 to 25,400+ employees today Rs.
Slide 9: Our journey so far
Our journey so far Consistently profit making and dividend paying1 company since 1979 with a strong track record and dividends to shareholders FY 1979-90 FY 2000-05 FY 2011 FY 2013 FY 2015 FY 2017 FY 2019 FY 2021 • Commenced • Started Chola • Obtained • Total AUM • Infused capital • Total AUM • Tota
Slide 10: 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 11: Shareholding
Shareholding Shareholding Pattern Institutional Holders (More than 1%) Top Domestic Institutional Holding • HDFC Mutual Fund • SBI Mutual Fund • Birla Sun Life Mutual Fund • Axis Mutual Fund • HDFC Standard Life Insurance Co Ltd Top Foreign Institutional Holding • Cartica Capital • Government of Sin
Slide 12: Business Profile and AUM as on 30th Jun 2020
Business Profile and AUM as on 30th Jun 2020 Business AUM Rs. 63,501Cr Vehicle Finance LAP & SME Home Loan Rs. 46,828Cr Rs. 13,371Cr Rs. 3,302Cr 74% 21% 5% Used Vehicles 26% HCV 12% Tractor 9% CE 5% LCV 21% 3 Whlr 1% 2 Whlr 4% Car 10% MUV 7% Mini LCV 5% HCV: Heavy Commercial Vehicle 2 Whlr: Two Whee
Slide 13: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (5) Punjab (23) Himachal Pradesh (17) 1091 1098 Chandigarh (1) 873 907 Uttarakhand (16) Haryana (32) Delhi (5) Rajasthan (82) UP (72) Assam (25) FY18 FY19 FY20 Q1FY21 Meghalaya (3) Bihar (42) Gujarat Mizoram (1) Madhya Pradesh (57) (80) Tripura (4) 27% 26
Slide 14: Financial Performance
Financial Performance iti! Y "95601,01
Slide 15: Financial Snapshot — 10 Years
Financial Snapshot —10 Years FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 CAGR CAGR Financials Snapshot YoY (10 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS (5 years) years) Disbursem ents 5,731 8,889 12,118 13,114 12,808 16,380 18,591 25,114 30,451 29,091 -4% 15% 20% A ssets u n
Slide 16: Chola: Financial Summary (I)
Chola: Financial Summary (I) Disbursements (₹Cr) Disbursements (%) * 30,451 * 29,091 1,157 2% 4% 5% 5% 5% * 25,114 1,505 16% 5% 4,310 14% 14% 14% 606 4,199 3,900 90% 24,983 -58% 82% 82% 80% 81% 23,387 * 8,572 20,607 420 1,212 * 3,589 190 6,940 168 3,231 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1
Slide 17: Chola: Financial Summary (II)
Chola: Financial Summary (II) Business - Assets under Management (₹Cr) Business - Assets under Management (%) 10% * 63,501 * 60,549 * 57,494 3,302 2% 4% 5% 4% 5% * 54,279 3,125 2,240 1,912 13,371 24% 22% 22% 21% 21% 13,218 * 42,924 12,277 11,762 978 10,473 44,206 46,828 73% 75% 73% 75% 74% 40,606 42
Slide 18: Chola: Financial Summary (III)
Chola: Financial Summary (III) Profit after tax (₹Cr) Networth (₹Cr) 32% *8,759 *8,172 164 164 **1387 *6,642 *6,176 156 335 156 1,186 *5,098 1,052 156 918 8,595 8,008 6,486 6,019 37% 4942 431 314 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 Reserves and Surplus Equity Share Capital * To
Slide 19: Chola: Financial Summary (IV)
Chola: Financial Summary (IV) Net Income Margin (%) Expenses Ratio (%) 7.5% 6.8% 6.8% 6.7% 3.0% 6.1% 2.6% 2.6% 2.5% 2.2% FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 19
Slide 20: Chola: Financial Summary (V)
Chola: Financial Summary (V) Loan Losses & Provisions (%) ROA - PBT (%) **3.5% 3.7% 3.7% **1.5% 3.6% 3.4% *0.8% 2.7% *0.8% 0.8% 0.8% 0.6% 0.7% 0.4% FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 * One time provision for COVID 19 + Macro provision ** Overall loan losses and ROA-PBT before
Slide 21: Chola: Financial Summary (VI)
Chola: Financial Summary (VI) Return on equity (%) Earnings per share (₹) 21.1 ** 20.0% 20.9% **17.6 4.8% 20.6% 19.6% 20.0% 4.3 16.2 15.2 15.2% 13.4 11.8 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 * One time provision for COVID 19 + Macro provision ** Overall ROE & EPS before COVID &
Slide 22: Chola: Financial Summary (VII)
Chola: Financial Summary (VII) P/E Ratio P/BV Ratio 4.4 24.7 3.7 3.4 19.1 17.7 11.4 1.8 9.0 1.5 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 22
Slide 23: Profit and Loss Statement (As per IND AS)
Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Particulars Q1FY20 Q1FY21 FY20 Q1-o-Q1 Disbursements 8,572 3,589 -58% 29,091 Closing Assets (Managed) 62,827 70,826 13% 66,943 Closing Assets (On B/S) 60,600 65,658 8% 61,786 Operating Income 2,030 2,114 4% 8,653 Finance Charges 1,087 1,131 4%
Slide 24: Balance Sheet (As per IND AS)
Balance Sheet (As per IND AS) Particulars Jun-19 Mar-20 Jun-20 ASSETS ₹ Cr Financial Assets 61,472 63,021 66,996 Cash and Bank balance 5,846 6,959 8,052 Derivative financial instruments 47 114 91 Receivables 54 59 44 Loans 55,284 55,403 58,336 Investments 73 73 73 Other Financial Assets 167 413 401
Slide 25: Stagewise Assets & Provision Summary
Stagewise Assets & Provision Summary ₹ Cr Mar-18 Mar-19 Mar-20 Mar-20 Mar-20 Jun-20 Jun-20 Jun-20 Mar-18 Mar-19 Mar-20 Mar-20 Mar-20 Jun-20 Jun-20 Jun-20 Particulars Normal Normal Normal Addn Total Normal Addn Total Normal Normal Normal Addn Total Normal Addn Total INR Cr INR Cr INR Cr INR Cr INR Cr
Slide 26: Stagewise ECL Summary – as of Jun 2020
Stagewise ECL Summary – as of Jun 2020 ₹ Cr Stage wise Summary - Mar 20 Stage wise Summary - Jun 20 Normal Total Total Total Normal Total Total Total Addn Prov Addn Prov Asset Prov Prov Particulars Moratorium Asset Prov Prov Rs in Cr Rs in Cr Rs in Cr Rs in Cr PCR (%) DPD Freeze Status Rs in Cr Rs i
Slide 27: Moratorium Collections – To date
Moratorium Collections – To date # of EMIs Moratorium # of Total 1+ months Agreements Part EMI 1 EMI 2 EMIs 3 EMI 4+ EMIs EMIs 1 Month 40953 17% 31% 0% 0% 0% 31% 2 Months 30690 18% 18% 27% 0% 0% 45% 3 Months 48213 12% 20% 9% 7% 0% 36% 4 Months 83910 8% 23% 20% 14% 5% 62% 5 Months 475082 10% 21% 10%
Slide 28: Moratorium – By Vintage
Moratorium – By Vintage Stage 1 Stage 2 Stage 3 Vintage # of Agreements AUM (in Rs.Cr) # of Agreements AUM (in Rs.Cr) # of Agreements AUM (in Rs.Cr) 0 - 6 months 90,872 4,300 243 10 0 0 6 - 12 months 2,68,518 11,074 1,618 78 109 4 12 - 18 months 2,42,029 11,262 4,375 248 592 29 18 - 24 months 1,71,5
Slide 29: Business Overview
Business Overview 29
Slide 30: Vehicle Finance
Vehicle Finance
Slide 31: Vehicle Finance: Q1FY21 Performance
Vehicle Finance: Q1FY21 Performance • Disbursements has declined by 53% in Q1FY21 as compared to Disbursements Q1FY20. Assets under management • Assets have grown by 9% as compared to Q1FY20. Loss and • Loan losses has improved to 0.5% in Q1FY21 as compared to 1.0% in provisions Q1FY20. Profit befor
Slide 32: Sector outlook – Vehicle Finance business (1/3)
Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position • A faster recovery of the Rural sector and a good Rabi • Chola intends to maintain a strong focus on financing of harvest is expected to support tractor demand. The tractors given the positive industry trends. More than
Slide 33: Sector outlook – Vehicle Finance business (2/3)
Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position • Heavy commercial vehicle segment has been • Our exposure to this segment has come down over the significantly impacted, since the imposed lockdown had last 2 years and is below 14% at a portfolio level. Our a substanti
Slide 34: Sector outlook – Vehicle Finance business (3/3)
Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position • Two-wheeler segment will have a larger role in elevating • The company intends to maintain a strong focus upon the automobile sector in this year by providing two-wheeler funding given the customer preference as afford
Slide 35: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) Chola @ -67% Chola @ -81% 61,159 54,819 1,07,732 1,06,865 43,577 (87%) 75,809 20,757 7,355 Q1 FY'18 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'18 Q1 FY'19 Q1 FY'20 Q1 FY'21 • Stronger demand from Consumption-dr
Slide 36: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) Chola @ -94% Chola @-56% 67,717 51,131 2,36,608 (93%) 2,12,815 35,030 (93%) 1,54,416 3,397 31,509 Q1 FY'18 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'18 Q1 FY'19 Q1 FY'20 Q1 FY'21 • Improved industrial ac
Slide 37: 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 38: 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 39: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY21
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY21 Well diversified across geography & product segments Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra 6% 4% Kerala Kerala Gujarat 5% 5% 6% 7% 5% Pondicherry Goa WB Pondicherry 11% Telangana
Slide 40: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY21
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY21 Well diversified across geography & product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise HCV 1% 3 Wheeler CE 3 Wheeler HCV CE 1% LCV 9% 2% 12% 5% 12% 2 Wheeler 2 Wheeler 4% 8% MUV 5% LCV 21% CAR 9% Used Vehicles 26%
Slide 41: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 6,940 Low Yield 316 5% 4% 5% 5% 3% 9% 643 * 5,949 9% 7% 5% * 5,796 1% 269 17% 12% 226 177 18% 386 21% 1,434 21% Medium Yield * 4,703 5% 1,017 7% 1,021 6% 9% 258 6% 457 411 230 7% 11%
Slide 42: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 46,828 * 43,901 * 44,589 * 44,206 5% 5% 5% 5% * 42,977 2,485 5% 2,131 2,183 2,220 Low Yield 2,109 5,585 15% 14% 13% 12% 16% 6,043 5,603 6,725 7,039 9,928 21% 21% 21% 22% 21% 9,413 9,401 9,369
Slide 43: Vehicle Finance: Financial summary Q1FY21 (I)
Vehicle Finance: Financial summary Q1FY21 (I) Disbursements (₹Cr) Assets under management (₹Cr) 9% 2,054 2,056 44,775 24,983 42,977 42,150 23,387 40,606 20,607 31,473 -53% 6,940 3,231 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 On Book Assignment 43
Slide 44: Vehicle Finance: Financial summary Q1FY21 (II)
Vehicle Finance: Financial summary Q1FY21 (II) Income (₹Cr) Profit before tax (₹Cr) 6,563 5,430 ** 1,342 1,269 397 4,192 988 945 38% 8% 1,561 1,686 440 319 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COVID & Mac
Slide 45: Vehicle Finance: Financial summary Q1FY21 (III)
Vehicle Finance: Financial summary Q1FY21 (III) Net Income Margin (%) Expense Ratio (%) 8.1% 3.6% 3.0% 3.0% 2.9% 2.5% 7.3% 7.0% 6.9% 6.8% FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 45
Slide 46: Vehicle Finance: Financial summary Q1FY21 (IV)
Vehicle Finance: Financial summary Q1FY21 (IV) Loan Losses & Provisions (%) ROA - PBT (%) **1.8% 3.9% 3.7% 3.6% **3.1% 0.9% 3.1% 0.9% 1.0% 2.2% 0.9% 0.8% 0.8% 0.5% FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 * One time provision for COVID 19 + Macro provision ** Overall loan losses and
Slide 47: Profit and Loss Statement: Vehicle Finance (Managed)
Profit and Loss Statement: Vehicle Finance (Managed) ₹ Cr Growth % Particulars Q1FY20 Q1FY21 FY20 Q1-o-Q1 Disbursements 6,940 3,231 -53% 23,387 Closing Assets (Managed) 42,977 46,828 9% 44,206 Operating Income 1,561 1,686 8% 6,563 Finance Charges 842 910 8% 3,525 Net Income 719 776 8% 3,038 Expenses
Slide 48: Profit and Loss Statement: Vehicle Finance (On Book)
Profit and Loss Statement: Vehicle Finance (On Book) ₹ Cr Growth % Particulars Q1FY20 Q1FY21 FY20 Q1-o-Q1 Disbursements 6,940 3,231 -53% 23,387 Closing Assets (On B/S) 42,977 44,775 4% 42,150 Operating Income 1,561 1,623 4% 6,594 Finance Charges 842 868 3% 3,475 Net Income 719 755 5% 3,120 Expens es
Slide 49: Loan Against Property
Loan Against Property
Slide 50: Loan Against Property — Q1FY21 Performance
Loan Against Property — Q1FY21 Performance • Disbursements has declined by 89% in Q1FY21 as compared to Disbursements Q1FY20. Asset under • The business has grown the Assets by 8% in Q1FY21. management Loss and provisions • Loan losses is at 0.3% in Q1FY21 as compared to 0.1% in Q1FY20. Profit befor
Slide 51: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • As per CIBIL Retail Credit Outlook (Jun 2020), the • Chola shall continue to focus on retail ticket size loans demand outlook for LAP remains low-moderate owing to reduce concentration risk. Portfolio LTV at to lower manufactu
Slide 52: Loan Against Property — Financial Summary Q1FY21 (I)
Loan Against Property —Financial Summary Q1FY21 (I) Disbursements (₹Cr) Assets under Management (₹Cr) 8% 2,425 2,427 1,991 3,837 1,671 3,662 671 3,174 10,536 10,683 9,954 10,129 9,424 -89% 1,101 119 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 On Book Assigned 52
Slide 53: Loan Against Property — Financial Summary Q1FY21 (II)
Loan Against Property—Financial Summary Q1FY21 (II) Income (₹Cr) Profit before tax (₹Cr) 1,478 **334 1,247 1,184 305 91 244 221 9% 3% 354 386 84 86 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COVID & Macro provi
Slide 54: Loan Against Property — Financial Summary Q1FY21 (III)
Loan Against Property—Financial Summary Q1FY21 (III) Net Income Margin (%) Expenses Ratio (%) 1.1% 1.1% 1.0% 4.1% 1.0% 3.9% 3.9% 0.9% 3.8% 3.8% FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 54
Slide 55: Loan Against Property — Financial Summary Q1FY21 (IV)
Loan Against Property—Financial Summary Q1FY21 (IV) Loan Losses & Provisions (%) ROA - PBT (%) **2.7% 2.8% 2.8% **0.7% 2.6% 0.7% 2.3% 2.0% 0.8% 0.7% 0.3% 0.1% 0.04% -0.04% FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 * One time provision for COVID 19 + Macro provision ** Overall loan lo
Slide 56: Profit and Loss Statement: Loan Against Property (Managed)
Profit and Loss Statement: Loan Against Property (Managed) ₹ Cr Growth % Particulars Q1FY20 Q1FY21 FY20 Q1-o-Q1 Disbursements 1,101 119 -89% 3,662 Closing Assets (Managed) 12,119 13,109 8% 12,960 Operating Income 354 386 9% 1,478 Finance Charges 238 260 9% 1,003 Net Income 116 126 9% 475 Expenses 29
Slide 57: Profit and Loss Statement: Loan Against Property (On Book)
Profit and Loss Statement: Loan Against Property (On Book) ₹ Cr Growth % Particulars Q1FY20 Q1FY21 FY20 Q1-o-Q1 Disbursements 1,101 119 -89% 3,662 Closing Assets (On B/S) 10,129 10,683 5% 10,536 Operating Income 318 314 -1% 1,342 Finance Charges 193 204 6% 795 Net Income 125 110 -12% 547 Expenses 29
Slide 58: Home Loans
Home Loans )
Slide 59: Home Loans — Q1FY21 Performance
Home Loans— Q1FY21 Performance • Disbursements has declined by 55% in Q1FY21 as compared to Disbursements Q1FY20. Asset under • The business has grown the Assets by 47% in Q1FY21. management Loss and provisions • Loan losses is at 0.3% in Q1FY21 as compared to 0.9% in Q1FY20. Profit before tax • PBT
Slide 60: Home Loans: Industry outlook
Home Loans: Industry outlook Sector Outlook Chola’s Position Immediate term: • Chola does not have Construction Finance and • Group Housing project completion getting delayed in material under construction exposure to developer large cities due to low demand, liquidity crunch and supplied houses. no
Slide 61: Home Loans — Financial Summary Q1FY21 (I)
Home Loans—Financial Summary Q1FY21 (I) Disbursements (₹Cr) Assets under Management (₹Cr) 688 677 2,613 2,449 236 2,004 1,912 1,505 1,157 -55% 978 606 420 190 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 61
Slide 62: Home Loans — Financial Summary Q1FY21 (II)
Home Loans—Financial Summary Q1FY21 (II) Income (₹Cr) Profit before tax (₹Cr) ** 78 357 15 64 189 53% 38 121% 28 111 101 72 13 7 FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COVID & Macro provision 62
Slide 63: Home Loans — Financial Summary Q1FY21 (III)
Home Loans—Financial Summary Q1FY21 (III) Net Income Margin (%) Expenses Ratio (%) 3.7% 6.5% 6.1% 6.1% 6.2% 6.2% 3.0% 2.9% 2.8% 2.4% FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 63
Slide 64: Home Loans — Financial Summary Q1FY21 (IV)
Home Loans—Financial Summary Q1FY21 (IV) Loan Losses & Provisions (%) ROA - PBT (%) ** 3.1% 3.5% 0.6% 2.8% 2.5% 2.4% 1.8% ** 0.8% 0.6% 0.9% 0.9% 0.3% 0.3% 0.3% FY18 FY19 FY20 Q1FY20 Q1FY21 FY18 FY19 FY20 Q1FY20 Q1FY21 * One time provision for COVID 19 + Macro provision ** Overall loan losses and ROA
Slide 65: Profit and Loss Statement: Home Loans (Managed)
Profit and Loss Statement: Home Loans (Managed) ₹ Cr Growth % Particulars Q1FY20 Q1FY21 FY20 Q1-o-Q1 Disbursements 420 190 -55% 1,505 Closing Assets (Managed) 2,240 3,302 47% 3,125 Operating Income 72 111 53% 357 Finance Charges 40 62 53% 201 Net Income 32 49 54% 157 Expenses 15 19 28% 71 Net Credit
Slide 66: Profit and Loss Statement: Home Loans (On Book)
Profit and Loss Statement: Home Loans (On Book) ₹ Cr Growth % Particulars Q1FY20 Q1FY21 FY20 Q1-o-Q1 Disbursements 420 190 -55% 1,505 Closing Assets (On B/S) 2,004 2,613 30% 2,449 Operating Income 100 88 -12% 393 Finance Charges 40 47 17% 168 Net Income 60 41 -32% 225 Expenses 15 19 28% 71 Net Credi
Slide 67: Funding Profile
Funding Profile 67
Slide 68: CAR, Credit Rating
CAR, Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 20.42 18.64 18.36 17.36 5.41 4.66 5.03 5.12 4.92 13.61 13.24 15.28 15.76 12.44 FY17 FY18 FY19 FY20 Q1FY21 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care IC
Slide 69: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) 120% Borrowing mix by instrument type (₹Cr) * 55,122 * 55,903 * 54,941 * 55,005 * 58,513 100% 3% 10% 10% 7% 3% 7% 3% 8% 3% 5% 3% 9% 7% 9% 5% 80% 10% 3% 4% 5% 3% 8% 3% 10% 8% 1% 10% 2% 12% 60% 14% 17% 40% 60% 58% 54% 47% 42% 20% 7% 7% 7% 8% 7% 0% Q1FY20 Q2FY20 Q3
Slide 70: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 55,122 * 55,903 * 54,941 * 55,005 * 58,513 100% * 59,000 10% 9% 9% 8% 7% 90% 2% 2% 1% 3% 2% 3% 3% 3% 3% 4% 4% 4% * 58,000 4% 4% 4% 80% 70% * 57,000 60% 58% 61% 50% 65% 67% * 56,000 68% 40% * 55,000 30% 1% 20% 5% 1% 5% 1% 1%
Slide 71: ALM Statement as of 30th Jun 2020 (As per IND AS)
ALM Statement as of 30th Jun 2020 (As per IND AS) (₹Cr) ALM snapshot as on 30th Jun 2020 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 2,764.03 755.00 2,280.00 750.00 1,000.00 - - - 7,549.03 Advances 816.18 439.00 758.75 4,753.10 9,381.8
Slide 72: Subsidiaries
Subsidiaries 72
Slide 73: Subsidiaries – Q1FY21
Subsidiaries – Q1FY21 •CHFL recorded a gross income of Rs. 7.26 crores in the quarter •During the quarter CSEC focused on creating three distinct ended 30 June, 2020 as against Rs. 10.75 crores in Q1FY20 and business lines for enhancing revenues and productivity - broking, PBT of Rs.0.40 crores as a
Slide 74: Risk Management
Risk Management 74
Slide 75: 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 76: 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 77: 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 78: 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 79: Information Technology
Information Technology 79
Slide 80: IT enablement for remote operations
IT enablement for remote operations Network Support: - Additional connectivity hardware and service support for all employees across the organization Server & Middleware Support: - Remote vendor support in place for managing and administrating servers & middleware - Application deployment and databa
Slide 81: Enhanced network security against cyberthreats
Enhanced network security against cyberthreats DC & NETWORK ENDPOINTS PEOPLE - SIEM (Security Information and - Increased review of the - Continuous Event Management) Monitoring endpoint update for Anti- communication on with frequent reviews of Virus & OS critical updates cyber precautions security
Slide 82: Human Resources
Human Resources 82
Slide 83: CHOLA @ COVID times
CHOLA @ COVID times 1. 2. No Salary Cuts Employee Assistance program – Enabled on call counselling support to all 25300+ employees to deal with anxiety and personal issues Energized Engaged 3. Central help desk to support on hospital admission 4. Multiple touch points with Employees Claims processin
Slide 84: Pandemic Crisis Management
Pandemic Crisis Management Increased touch points – Emphasis on employee health & Ensuring Business continuity Employee first safety • Enabling work from home • On average 500+ employees • Educating employees option for employees. reached out everyday. periodically about the • Re-aligning of HR proc
Slide 85: Fighting COVID-19
Fighting COVID-19 Employee Work status Branch Operational status 90% 100% 92% 95% 90% 80% 77% 90% 70% 80% 60% 70% 50% 60% 38% 40% 40% 50% 30% 22% 40% 20% 16% 7% 30% 21% 10% 20% 0% Working From Working from Working in Field 10% Home Office 0% CIFCL CBSL 30th April 30th May 30th June 16th July 85
Slide 86: Employee Wellness initiatives
Employee Wellness initiatives C-Safe Web application Empowering employees to self assess their COVID risk profile Ensuring safe working environment by tracking employee’s COVID risk profile Focused support for high risk profile employees COVID’19 Employee Benefit Policy Financial support for
Slide 87: ECL Methodology
Chola ECL Methodology 87
Slide 88: 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 89: 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 90: 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 91: 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 92: 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 93: Thank You
} Chola % STRONGER TOGETHER Collaborating for Success! THANK YOU Lo
Cholamandalam Investment and Finance Company — Investor Presentation (June 2020) on 6ix