Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Q1 FY2022 Earnings Presentation
89 slides from Cholamandalam Investment And Finance's earnings presentation, Jul 30, 2021
Slide 1: Board meeting outcome letter to stock exchanges
July 30, 2021 The Secretary The Secretary National Stock Exchange of India Limited BSE Ltd. Trade World, 4th Floor, Kamala Mills Compound 1st Floor, P.J. Towers Senapati Bapat Marg, Lower Parel, Dalal Street, Fort, Mumbai 400 013 Mumbai 400 001 NSE SCRIP CODE: CHOLAFIN EQ BSE SCRIP CODE: 511243 NSDL
Slide 2: Resignation of statutory auditors and analyst call schedule
3. Resignation of statutory auditors: Further to a communication dated June 21, 2021 regarding their intention to resign as auditors, taken note of the letter dated July 30, 2021 received from M/s. S.R. Batliboi & Associates LLP, Chartered Accountants expressing their inability to continue as statut
Slide 3: Corporate Presentation - June 2021
CORPORATE PRESENTATION - JUNE 2021
Slide 4: 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. Environmental 8. Risk performance Social Governance management 2
Slide 5: Murugappa Group Overview
Murugappa Group Overview 3
Slide 6: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 121 Years of $5.5 $18.2 Turnover cap (as on Years Existence B B (FY21) 30th Jun 2021) Listed 3 Sectors 30 Businesses 10 Companies 19 Geographical 90+ Manufacturing 50,000+ Work force Countries Presence Locations Locations 4
Slide 7: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 33,924 33,946 54,551 Turnover (Cr.) 18,545 8,432 14,030 PAT(Cr.) 2,020 589 1,824 Market Cap(Cr.) 26,374 7,550 11,896 22,466 42,077 NA 12,474 Turnover (Cr.) 14,145 4,400 2,604 5,827 9,584 4,388 58 PAT(
Slide 8: Corporate Overview
Corporate Overview 6
Slide 9: 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 10: Cholamandalam Investment & Finance Company Limited
Cholamandalam Investment & Finance Company Limited 16.6 lakh + customers 27,584 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 16.6 lakh plus customers till date 200 plus employees in year 2000 to 27,500+ employees today
Slide 11: Our journey so far
Our journey so far FY 2020-21 FY 2021-22 FY 2015-20 2022 – Q1 2016 2021 • Reaffirmed as • Adopted GNPA recognition at • Total AUM crossed constituent of FY 2010-15 120 days ₹69k Cr. FTSE4Good Index • Total AUM • Increased branch Series crossed ₹30K Cr. network to 1137. • Covid Wave 2 • New LEAP LOS
Slide 12: Shareholding
Shareholding Shareholding Pattern Institutional Holders (More than 1%) Top Domestic Institutional Holding • Axis Mutual Fund • HDFC Mutual Fund • Birla Sun Life Mutual Fund • HDFC Standard Life Insurance Co Ltd • SBI Mutual Fund • DSP Mutual Fund • UTI Mutual Fund Top Foreign Institutional Holding o
Slide 13: Business Profile and AUM as on 30th Jun 2021
Business Profile and AUM as on 30th Jun 2021 Business AUM Rs. 67,821Cr Vehicle Finance LAP & SME Home Loan Rs. 48,403Cr Rs. 15,015Cr Rs. 4,402Cr 71% 22% 7% BT 4% Used Resale 13% Vehicles 27% HCV 9% Top-Up 1% Tractor Self- 10% LCV 21% Construction Builder 51% CE 6% Purchase - 3 Whlr New 31% 1% Mini L
Slide 14: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (5) Punjab (23) Himachal Pradesh (17) Chandigarh (2) 1091 1137 1137 Uttarakhand (16) 907 Haryana (32) Delhi (5) Sikkim (1) Rajasthan (83) UP (72) Assam (25) Meghalaya (3) FY19 FY20 FY21 Q1FY22 Bihar (43) Gujarat Mizoram (1) Madhya Pradesh Tripura (4) 25%
Slide 15: Financial Performance
Financial Performance iy rh iy! ett 01
Slide 16: Financial Snapshot - 10 Years
Financial Snapshot —10 Years FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 CAGR CAGR Financials Snapshot YoY (10 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS (5 years) years) Disbursem ents 8,889 12,118 13,114 12,808 16,380 18,591 25,114 30,451 29,091 26,043 -10% 9% 13% Assets und
Slide 17: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 30,451 * 29,091 1,157 4% 5% 6% 5% 5% 1,505 * 26,043 5% 14% 14% 4,310 16% 16% 4,199 1,542 4,252 90% 24,983 82% 80% 78% 78% 23,387 20,249 1% * 3,589 * 3,635 190 199 168 568 3,231 2,846 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 VF LA
Slide 18: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 69,996 * 67,821 4,345 * 63,501 * 60,549 4,402 4% 5% 6% 5% 7% 3,302 * 54,279 3,125 15,236 22% 22% 21% 15,015 22% 22% 1,912 13,371 13,218 11,762 50,415 48,403 75% 73% 72% 74% 71% 44,206 46,828 40,
Slide 19: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 1515 *9,887 *9,560 164 164 *8,759 *8,172 164 1186 164 1052 *6,176 156 9,396 9,723 8,595 8,008 6,019 431 327 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 Reserves and Surplus Equity Share Capital * Total Networth 17
Slide 20: Asset Ratios
Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.6% 7.2% 2.6% 6.8% 6.8% 2.6% 6.1% 2.3% 2.2% 2.1% FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 Loan Losses & Provisions (%) ROA - PBT (%) 3.1% 3.7% 3.0% 2.7% 3.6% 1.9% 2.5% 0.6% 0.7% 0.4% FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q
Slide 21: Shareholders' Returns Ratios
Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 20.9% 20.6% 21.1 16.9% 18.5 15.2% 15.2 16.0 13.5% 13.4 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 P/E Ratio P/BV Ratio 32.1 30.2 4.8 4.3 3.7 19.1 11.4 1.8 9.0 1.5 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY2
Slide 22: Profit and Loss Statement (As per IND AS)
Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1FY21 Q4FY21 Q1FY22 FY21 Q1-o-Q1 Q4-o-Q1 Disbursements 3,589 8,071 3,635 1% -55% 26,043 Closing Assets (Managed) 70,826 76,518 75,763 7% -1% 76,518 Operating Income 2,114 2,461 2,467 17% 0% 9,520 Finance Charges 1,131 1,12
Slide 23: Balance Sheet (As per IND AS)
Balance Sheet (As per IND AS) ₹ Cr Particulars Jun-20 Mar-21 Jun-21 ASSETS Financial Assets 66,996 73,365 72,981 Cash and Bank balance 8,052 5,232 6,696 Derivative financial instruments 91 46 89 Receivables 44 66 61 Loans 58,336 65,839 63,966 Investments 73 1,619 1,631 Other Financial Assets 401 563
Slide 24: Stagewise Assets & Provision Summary
Stagewise Assets & Provision Summary ₹ Cr Mar-21 Mar-21 Mar-21 Jun-21 Jun-21 Jun-21 Mar-21 Mar-21 Mar-21 Jun-21 Jun-21 Jun-21 Particulars Normal Covid Total Normal Covid Total Normal Covid Total Normal Covid Total INR Cr INR Cr INR Cr INR Cr INR Cr INR Cr % to GA % to GA % to GA % to GA % to GA % to
Slide 25: Business Overview
Business Overview 23
Slide 26: Vehicle Finance
Vehicle Finance
Slide 27: Vehicle Finance: Q1FY22 Performance
Vehicle Finance: Q1FY22 Performance Disbursements • Disbursements have grown by 1% in Q1FY22 as compared to Q1FY21. Assets under management • Assets have grown by 7% as compared to Q1FY21. Loss and • Loan losses is at 3.1% in Q1FY22 as compared to 0.4% in Q1FY21. provisions Profit before tax • PBT d
Slide 28: Sector outlook - Vehicle Finance business (1/1)
Sector outlook – Vehicle Finance business (1/1) Sector Outlook Chola’s Position • The Tractor industry witnessed a growth of 39% in Q1 • More than 80% of our branches are present in the FY’22. The sales momentum in tractors is expected to rural areas, towns and semi urban areas which gives marginall
Slide 29: Sector outlook - Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position The Passenger vehicle (Car & MUV) segment had a growth • Our focus is predominantly on retail customers mainly in of 321% in Q1 FY’22 with a low base effect. The second smaller towns and rural market. Our exposure to t
Slide 30: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) 1,07,732 (in Units) 1,06,865 61,159 54,819 Chola @ 12% Chola @ 35% 163% 54,037 242% 25,134 20,526 7,355 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 • Stronger demand from Consumption-
Slide 31: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) 8,67,118 67,717 Chola @12% 7,08,179 6,47,848 51,131 Chola @ 197% 321% 591% 25,053 1,53,861 3,628 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 Q1 FY'19 Q1 FY'20 Q1 FY'21 Q1 FY'22 • Improved industrial act
Slide 32: 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 33: 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 34: Vehicle Finance - Disbursement/Portfolio Mix - Q1FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY22 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Maharashtra Karnataka Maharashtra Kerala Kerala 6% 7% 6% 5% 6% Puducherry Gujarat 7% 5% Puducherry 10% 3% Telangana Gujarat 5% Telangana Goa
Slide 35: Vehicle Finance - Disbursement/Portfolio Mix - Q1FY22
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY22 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler 3 Wheeler HCV CE HCV CE 1% 5% 0.3% 9% 6% 6% LCV 2 Wheeler 2 Wheeler 8% 4% 18% LCV 21% MUV 8% Used Vehicles Used Vehicles 22% 27% MUV 7%
Slide 36: Vehicle Finance - Disbursement Mix - Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 6,084 * 6,153 383 504 164 9% 8% 6% 8% 6% 413 2% 3% 1% 5% * 4,781 944 7% 12% 16% 16% 363 1,231 18% 92 321 5% 20% 6% 5% 777 567 9% 8% 366 9% * 3,231 218 3% 10% 6% 297 600 4% 12% Yield
Slide 37: Vehicle Finance - Portfolio Mix - Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 5% 6% 6% 6% 6% * 49,936 * 50,415 * 49,264 * 48,403 12% 11% 10% 9% 9% 46,828 Low Yield 2,718 2,882 3,069 2,982 2,485 5,041 4,882 5,453 4,560 5,585 21% 20% 21% 21% 21% 10,209 10,472 Medium Yield
Slide 38: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) 24,983 *50,415 *48,403 1,479 *46,828 23,387 1,295 *44,206 2,054 *40,606 2,056 20,249 48,937 47,108 44,775 40,606 42,150 3,231 2,846 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 O
Slide 39: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 7,388 1,287 1,269 6,563 5,430 945 -41% 440 1,905 1,686 258 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 37
Slide 40: Vehicle Finance - Asset Ratios
Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 3.0% 3.0% 8.4% 2.7% 7.7% 2.6% 7.3% 2.5% 7.0% 6.8% FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 Loan Losses & Provisions (%) ROA - PBT (%) 3.7% 3.9% 3.6% 2.7% 2.3% 2.2% 2.1% 0.9% 0.8% 0.5% FY19 FY20 FY21 Q1FY21 Q1FY22
Slide 41: Profit and Loss Statement - Vehicle Finance (Managed)
Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q4FY21 Q1FY22 FY21 Q1-o-Q1 Q4-o-Q1 Disbursements 3,231 6,153 2,846 -12% -54% 20,249 Closing Assets (Managed) 46,828 50,415 48,403 3% -4% 50,415 Operating Income 1,686 1,895 1,905 13% 1% 7,388 Finance Char
Slide 42: Profit and Loss Statement - Vehicle Finance (On Book)
Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q4FY21 Q1FY22 FY21 Q1-o-Q1 Q4-o-Q1 Disbursements 3,231 6,153 2,846 -12% -54% 20,249 Closing Assets (On B/S) 44,775 48,937 47,108 5% -4% 48,937 Operating Income 1,623 1,853 1,865 15% 1% 7,188 Finance Charg
Slide 43: Loan Against Property
Loan Against Property
Slide 44: Loan Against Property - Q1FY22 Performance
Loan Against Property – Q1FY22 Performance • Disbursements has grown by 225% in Q1FY22 as compared to Disbursements Q1FY21. Asset under • The business has grown the assets by 11% in Q1FY22. management Loss and provisions • Loan losses is at 2.1% in Q1FY22 as against 0.3% in Q1FY21. Profit before tax
Slide 45: Loan Against Property - Industry outlook
Loan Against Property - Industry outlook Sector Outlook Chola’s Position • As per CRISIL, pick-up in economic activity with • Business has implemented a renewed credit policy favourable government measures supported MSMEs and is well equipped to capitalize on the demand in in FY21. Also, MSME borrow
Slide 46: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) CAGR - (3%) * 14,777 * 14,509 3,837 * 12,960 2,062 * 13,109 1,961 3,662 3,627 * 11,626 2,425 2,427 1,671 12,716 12,548 10,536 10,683 9,954 225% 119 386 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19
Slide 47: Loan Against Property - Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,639 1,478 305 306 1,247 244 -48% 432 86 386 65 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 45
Slide 48: Loan Against Property - Asset Ratios
Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 4.7% 4.3% 1.1% 3.9% 1.0% 1.0% 3.8% 3.8% 0.9% 0.8% FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 Loan Losses & Provisions (%) ROA - PBT (%) 2.1% 2.8% 2.6% 2.2% 2.0% 1.8% 1.1% 0.7% -0.04% 0.3% FY19 FY20 FY21 Q1FY
Slide 49: Profit and Loss Statement - Loan Against Property (Managed)
Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q4FY21 Q1FY22 FY21 Q1-o-Q1 Q4-o-Q1 Disbursements 119 1,191 386 225% -68% 3,627 Closing Assets (Managed) 13,109 14,777 14,513 11% -2% 14,777 Operating Income 386 431 432 12% 0% 1,639 Finance Charges
Slide 50: Profit and Loss Statement - Loan Against Property (On Book)
Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q4FY21 Q1FY22 FY21 Q1-o-Q1 Q4-o-Q1 Disbursements 119 1,191 386 225% -68% 3,627 Closing Assets (On B/S) 10,683 12,716 12,552 17% -1% 12,716 Operating Income 314 382 379 21% -1% 1,470 Finance Charges
Slide 51: Home Loans
Home Loans ly )
Slide 52: Home Loans - Q1FY22 Performance
Home Loans – Q1FY22 Performance Disbursements • Disbursements has grown 5% in Q1FY22 as compared to Q1FY21. Asset under • The business has grown the assets by 33% in Q1FY22. management Loss and provisions • Loan losses is at 0.3% in Q1FY22 as against 1.9% in Q1FY21. Profit before tax • PBT has grown
Slide 53: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position Immediate term: • Chola does not have Construction Finance exposure • While marginal demand recovery is expected in Q2, • Chola does not have material under construction exposure affordable housing demand may pick up only by Q3 driven to
Slide 54: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *4,406 *4,345 620 602 1,505 1,542 *3,302 *3,125 688 1,157 677 3,726 3,801 2,449 2,613 5% 1,912 190 199 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 On Book Assigned * Total AUM 52
Slide 55: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 112 519 357 64 38% 41 189 38 154 28 111 FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 53
Slide 56: Home Loans - Asset Ratios
Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.3% 7.0% 3.0% 2.8% 6.1% 6.1% 6.2% 2.4% 2.4% 1.6% FY19 FY20 FY21 Q1FY21 Q1FY22 FY19 FY20 FY21 Q1FY21 Q1FY22 Loan Losses & Provisions (%) ROA - PBT (%) 1.9% 3.8% 3.5% 1.5% 3.1% 2.8% 2.5% 0.3% 0.3% 0.3% FY19 FY20 FY21 Q1FY21 Q1FY22 FY1
Slide 57: Profit and Loss Statement - Home Loans (Managed)
Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1FY21 Q4FY21 Q1FY22 FY21 Q1-o-Q1 Q4-o-Q1 Disbursements 190 538 199 5% -63% 1,542 Closing Assets (Managed) 3,302 4,345 4,402 33% 1% 4,345 Operating Income 111 152 154 38% 1% 519 Finance Charges 62 70 74 20% 5% 262 Ne
Slide 58: Profit and Loss Statement - Home Loans (On Book)
Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1FY21 Q4FY21 Q1FY22 FY21 Q1-o-Q1 Q4-o-Q1 Disbursements 190 538 199 5% -63% 1,542 Closing Assets (On B/S) 2,613 3,726 3,801 45% 2% 3,726 Operating Income 88 136 136 54% 0% 473 Finance Charges 47 58 62 32% 7% 207 Net
Slide 59: Funding Profile
Funding Profile 57
Slide 60: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 20.69 19.07 19.08 18.36 17.36 5.41 3.93 2.48 5.12 4.92 13.24 12.44 15.28 15.14 16.60 FY18 FY19 FY20 FY21 Q1FY22 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care
Slide 61: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 58,513 * 60,578 * 62,047 * 63,730 * 63,197 7% 6% 7% 4% 5% 3% 2% 3% 2% 3% 6% 7% 6% 7% 7% 6% 6% 6% 4% 6% 3% 3% 2% 2% 3% 10% 11% 13% 14% 15% 58% 57% 57% 58% 55% 7% 7% 7% 7% 6% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Tier II Capit
Slide 62: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type *58,513 *60,578 *62,047 *63,730 *63,197 7% 7% 6% 7% 6% 1% 2% 2% 2% 2% 3% 3% 3% 1% 2% 4% 6% 6% 6% 6% 67% 65% 66% 67% 66% 1% 1% 3% 1% 4% 1% 4% 4% 4% 4% 9% 8% 10% 9% 8% 2% 3% 3% 2% 3% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Trusts Mu
Slide 63: ALM Statement as of 30th Jun 2021 (As per IND AS)
ALM Statement as of 30th Jun 2021 (As per IND AS) (₹Cr) ALM snapshot as on 30th Jun 2021 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 2,975.37 775.38 2,490.60 11.36 72.82 1,397.42 194.28 - 7,917.23 Advances 1,553.86 1,428.20 1,198.69 6,
Slide 64: Subsidiaries
Subsidiaries 62
Slide 65: Subsidiaries - Q1FY22
Subsidiaries – Q1FY22 •CHFL recorded a gross income of Rs. 6.81 crores in Q1FY22 as •During the quarter CSEC focused on creating three distinct compared to Rs. 7.29 crores in Q1FY21 and PBT of Rs.1.66 crores business lines for enhancing revenues and productivity - broking, as compared to Rs. 0.40 cr
Slide 66: Environmental Social Governance
Environmental Social Governance 64
Slide 67: Environmental, Social & Governance (ESG) at Chola
Environmental, Social & Governance (ESG) at Chola Corporate Access to Finance Governance ESG based Privacy & Data lending Security Innovation Digitization Employee Wellness Carbon Learning & Development Waste Diversity & Inclusion Green Building Empowering Communities 65
Slide 68: Responsible Products
G Responsible Products Access to Our products focus on first time borrowers (FTB) and new to credit customers (NTCC) ensuring financial inclusion of sections of society including micro business owners Finance Vehicle Financing Loan against Property Focus on transport entrepreneurs, first time borrow
Slide 69: Improving Efficiency
G Improving Efficiency Digitization Effective Governance Corporate Governance Privacy & Data Security Policies and process in place to enable Policy review at board level on periodic basis; Digitization highest standards in governance and Training on data security and privacy transparency; ethical b
Slide 70: People Power
People Power S Employee Wellness Diversity & Inclusiveness Emotional & mental wellbeing programs: Utilized by several employees in the past Business activities such as hiring, year promotion, and compensation of Dedicated grievance hotline employees, conducted without regard to Focus on Stre
Slide 71: Environmental Consciousness
E Environmental Consciousness Green Building Waste Carbon We aim at incorporating green methods With a clear focus on sustainability, As an environmentally responsible in the construction of our upcoming Chola has a well defined e-waste company Chola has taken various office buildings. The latest of
Slide 72: 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 73: Risk Management
Risk Management 71
Slide 74: 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 75: 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 76: 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 77: 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 78: Information Technology
Information Technology 76
Slide 79: Technology Updates
Technology Updates Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all Executed enhancement of connectivity infrastructure for Ongoing functional and technical enhancements for
Slide 80: COVID Updates
COVID Updates 78
Slide 81: Update on COVID test employees - as on 26th Jul 2021
Update on COVID test employees – as on 26th Jul 2021 Head Covid Data North East West South Total Office # Total no of emp Tested Positive till date 1163 2243 1198 2000 163 6767 # Emp Under Treatment 3 12 2 36 1 54 # No of Hospitalisation - - - - - - # Emp Recovered till date 1156 2225 1186 1957 162
Slide 82: Employee Support Programs
Employee Support Programs Monthly gross salary credit to the family of deceased employees up to 24 months Employment opportunity on merit for the eligible dependents Support education of deceased frontline field employees’ children up to graduation Continued Insurance coverage for the rest o
Slide 83: ECL Methodology
ie murugappa ECL Methodology 81
Slide 84: 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 85: 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 86: 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 87: 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 88: 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 89: Thank You
Chola i Enter a better life murugappa THANK YOU Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company — Q1 FY2022 Earnings Presentation on 6ix