Cholamandalam Investment and Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment and Finance — Cholamandalam DBS Finance — Shareholder Meeting (July 2009)
22 slides from Cholamandalam Investment and Finance's shareholder meeting presentation, Jul 28, 2009
Slide 1: Cholamandalam DBS Finance Limited 31st Annual General Meeting
Cholamandalam DBS Finance Limited 31st Annual General Meeting 28th July 2009 1
Slide 2: Executive Summary
Executive Summary • Very difficult/ most challenging business environment marked by: – Liquidity crunch – Slowdown in the economy – Virtual collapse of the stock market – Job losses, customer confidence – Higher delinquencies and Loan losses • Chola’s businesses steeply impacted by lower disbursemen
Slide 3: Financial Snapshot
Financial Snapshot • Financials : – Disbursements – Rs. 2844 Cr. – Income - Rs. 1120.63 Cr. – Profit After Tax – Rs.42.75 Cr. – EPS : Basic – Rs.7.05 & Diluted – Rs.6.83 – Capital Adequacy Ratio – 15.12% 3
Slide 4: Challenges Faced – 2008-09
Challenges Faced – 2008 - 09 Overall Challenges Impact – Financial Crisis & Liquidity Non availability of funds crunch Increase in cost of funds – Sudden withdrawal of Mutual funds from Money Reduction in spreads market impacting profitability / margins – Redemption pressures on every side – E
Slide 5: Challenges Faced – 2008-09
Challenges Faced – 2008 - 09 Challenges Impact • Economic slow down • SME sector worst affected • Loss of jobs • Delinquencies on the rise • General slow down across all • Coupled with job losses, PL sectors customers could not pay the installments • Huge fall in Stock markets- • Directly impacted t
Slide 6: Challenges Faced – 2008-09
Challenges Faced – 2008 - 09 Challenges Impact • No demand in CV segment • Disbursements slow down • Rating downgrades • Lesser absorption of fixed costs impacting profitability • Credit evaluation becomes tough
Slide 7: Action Taken
Action Taken • Joint Venture Partners – Infused Rs.300 Cr. of Preference Share Capital at a nominal dividend of 1%. • Implementation of Capital Restructuring Scheme whereby part of securities premium balance is used to offset the personal loan losses and diminution in value of investments in subsidi
Slide 8: Financial Highlights
Financial Highlights Revenuein Crores Assetsin Crores 1200 8600 1000 8500 26% 8400 6% 800 8300 600 8200 892 1121 8100 8546 400 8000 200 7900 8077 0 7800 FY - 08 FY - 09 FY - 08 FY - 09 ProfitAfter Taxin Crores DisbursementsinCrores 70 6,000 60 5,000 50 4,000 -43% -28% 40 3,000 30 2,000 20 59.36 42.7
Slide 9: Products – At a Glance
Products – At a Glance Product Portfolio Vehicle Finance •Operating through more than 150 locations •Product Segments-Prime and Shubh loans •Prime- New and Used CV’s , Cars & Muv’s •Shubh- Funding against FTU and older vehicles Non PDC based Home Equity •Operating out of more than 22 locations •Loan
Slide 10: Products – At a Glance
Products – At a Glance Business Finance • Finance Against Shares •Working capital Loans • Loan against Property Cross Sell •Separate vertical for cross sell formed •More than 4 lakhs customer base •Life Insurance Partner – TATA AIG •General Insurance Partner – Cholamandalam MS
Slide 11: Asset Profile
Asset Asset Profile Profile Asset Profile 12% Vehicle Finance 6% Personal Loans 51% Business Finance 31% Home Equity
Slide 12: Borrowing Profile
Borrowing – Profile Asset Profile TermLoans 19% 26% Subordinated Debt 5% MediumTermNCD 17% Banks 33% Short Term Instruments
Slide 13: Strategy – Road Ahead
Strategy – RoadDBS Cholamandalam Ahead Strategy • Vehicle Finance • Realign the business model to address strategic customer segments • Improve collection infrastructure and increase geographical penetration to address used vehicle loan customers Home Equity • National Expansion leveraging VF Branch
Slide 14: Credit Rating
Credit Rating • During the year the Company Credit Rating was revised • CRISIL – Short Term Rating from P1 + to P1 • ICRA – Medium Term Rating from LAA to LAA – / Negative • Fitch – Medium Term Rating from FAA to FAA – / Negative • Impact – Limited Access to Short Term Instruments – Higher Coupon Ra
Slide 15: Disclaimer
Disclaimer Certain of the 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 DBS finance Ltd and its subsidiaries. There can be no assuran
Slide 16: Thank You
Thank You
Slide 17: Financials Results Q1 of FY-10
Financials Results Q – 1 of FY - 10
Slide 18: Results of Q1 2009-10
Results of Q 1 – 2009 - 10 RsinCr. Apr - Jun09 Details Last Year Current Year Growth Retail Disbursements 964.11 701.87 -27% Gross Income 319.38 238.88 -25% Profit Before Tax 5.26 5.07 -4%
Slide 19: Audit Comments
Audit Comments
Slide 20: Capital Restructuring Scheme
Capital Restructuring Scheme • The scheme has been approved by all shareholders, creditors, and by the Honorable High Court of Judicature at Madras as well as the Registrar of Companies and SEBI. • Scheme has been given effect to in the financials for 2008-09. The utilisation of Rs. 323.53 Cr. from
Slide 21: Bank Reconciliation Statement
Bank Reconciliation Statement • Auditor have qualified their report for unmatched items in Bank Reconciliation Statement. • The matching process was delayed due to significantly high level of volumes as well as certain data migration issues while moving from legacy system to a new system. • These is
Slide 22: Disclaimer
Disclaimer Certain of the 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 DBS finance Ltd and its subsidiaries. There can be no assuran
Cholamandalam DBS Finance — Shareholder Meeting (July 2009) on 6ix