Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q1 FY25 Earnings Presentation
71 slides from Cholamandalam Financial's earnings presentation, Aug 10, 2024
Slide 1: Exchange filing cover letter: Presentation to Analyst / Investor
August 10, 2024 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 Mumbai 400 001 Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Symbol : CHOLAHLDNG S
Slide 2: Cholamandalam Financial Holdings Corporate Presentation Q1-FY25
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q1-FY25 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 124 Years of $9.3 $52.4 Turnover cap (as on 28th Years Existence B B (FY24) Jun 2024) Listed 3 Sectors 29+ Businesses 9 Companies 50 Geographical 113 Manufacturing 83,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 60,673 2,21,741 1,46,786 Turnover (Cr.) 51,471 19,533 26,196 PAT(Cr.) 3,260 2,200 3,923 Market Cap(Cr.) 47,119 13,554 31,690 82,428 1,07,623 1,19,541 NA 27,245 Turnover (Cr.) 22,058 29,413 4,628 7,144
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 (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 44.38% 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 June 30, 2024 * ICICI Mutual Fund * Aditya Birla Mutual Fund * HDFC Mutual Fund * Nippon India Mutual Fund 15.33% * Sundaram Mutual Fund * Axis Mutual Fund 13.60% 47.32% * Bandhan
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax EPS (Rs.) Q1 FY25 7,677 1,160 29.20 34% 46% 48% Q1 FY24 5,715 792 19.78 7
Slide 9: Profit After Tax (Rs. in crs)
Performance Highlights - Consolidated Profit After Tax (Rs.in crs) 1,400 1,160 1,200 947 1,000 792 800 710 600 400 211 200 81 1 1 - CIFCL CMSGICL Others CFHL Consol Q1 FY25 Q1 FY24
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone CIFCL Q1 FY25 Q1 FY24 Particulars (Rs. in Cr) Q1 FY25 Q1 FY24 Disbursements (Rs. in Cr) 24,332 20,015 As of As of Income 2.58 2.58 30-Jun-2024 31-Mar-2024 Expenses 0.72 1.55 Asset Under Management (Rs. in Cr) 1,68,832 1,53,718 Profit Before Tax 1.86
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars June 30, 2024 March 31, 2024 Owned Funds (A) 1,278.65 1,277.09 Adjusted Networth (B) 23,370.55 22,575.32 Risk Weighed Assets ( C) 1,280.42 1,280.25 Outside Liabilities (D) 1.81 1.65 Net assets (E) 1,279.73 1,279.56 Investment in equity shares
Slide 12: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 13: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) 0.03% 1% 1% 1% 1% 5% 6% 8% 7% 7% 5% 9% 2% 9% 9% 10% 16% 10% 13% 12% 14% 14% 14% 15% 16% 72% 60% 56% 54% 53% FY22 FY23 FY24 Q1 FY24 Q1 FY25 VF LAP CSEL SME HL SBPL New business includes SME, CSEL and SBPL 12
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,55,442 * 1,45,572 1,618 1,404 14,565 1% 1% 1% 13,404 0.01% 1% 5,576 7% 8% 9% 8% 1% 9% 4,977 * 1,14,796 3% 3% 3% 12,909 1% 5% 4% 6% * 1,06,498 11,430 611 8% 8% 22% 444 9,528 3,860 32,135 20% 20
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 26% 37% CAGR 30% Note on Networth FY24 – Raised capital of ₹2,000 Cr (QIP) and Rs.2,000 Cr (Compulsory Convertible Debentures). 14
Slide 16: Chola - Stage 3 Assets Trend
Chola –Stage 3 Assets Trend Chola 50.00% 45.40% 47.32% 12.00% 46.00% 46.45% 45.15% 45.50% 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% 30.00% 4.00% 3.01% 3.06% 2.96% 2.82% 1.73% 1.69% 2.48% 2.62% 1.59% 1.44% 1.38% 1.39% 1.40% 1.27% 25
Slide 17: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 18: Vehicle Finance: Q1FY25 Performance
Vehicle Finance: Q1FY25 Performance • Disbursements grew by 13% in Q1FY25 to Rs. 12,766 Cr as Disbursements compared to Q1FY24. Assets under • AUM has grown by 25% YoY. management Loss and • Loan losses at 1.9% in Q1FY25 from 1.5% in Q1FY24. provisions Profit before tax • PBT grew by 24% in Q1FY25 t
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 ▪ We will continue our focus in this segment in line with growth of 6% in Q1 FY’25 which is an all-time macro economic demand. high sales for Q1 of any previous year. The impa
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 our focus in this segment in line had a growth of 3% in Q1 FY’25 which is an all- with retail demand and customer sentiments. time high sales for Q1 of any p
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 7% at a growth of 5% in Q1 FY’25. This segment is poised portfolio level and we will strive to maintain to grow in line with governments
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year Chola 4 year CAGR 18% Chola YoY growth rate 3% Chola YoY growth rate (20%) CAGR 42% (in Units) (in Units) Industry YoY growth 52705 rate (1%) 134959 49165 43065 42471 110108 116583 109939 CAGR @ 10% 25134 CAGR
Slide 23: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales Chola 4 year Chola YoY growth rate 19% Chola YoY growth rate 17% CAGR 63% (in Units) 79668 (in Units) 65033 CAGR @ 10% 61074 61722 1187838 998382 1026099 CAGR @ 10% 911096 647848 25053 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25
Slide 24: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales Chola YoY growth rate 17% Chol a 4 year Chol a YoY growth ra te 19% (in Units) CAGR 63% (in Units) 79668 61722 65033 1187838 61074 CAGR 998382 1026099 @ 10% 911096 CAGR @ 10% 647848 25053 Q1 FY22 Q1 FY23 Q1 FY24 Q1 F
Slide 25: 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 26: 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 27: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY25
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY25 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadar and Dadra and Nagar Nagar Haveli Haveli & Daman … & Daman & MP AP Diu Karnataka MP AP Maharashtra 0.05% Maharashtra 0.04% Karnataka 5% 5% 5% Gujarat 5% Kera
Slide 28: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY25
Vehicle Finance - Disbursement/Portfolio Mix – Q1FY25 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise HCV 7% CE HCV 3 Wheeler 6% 6% 1% LCV 3 Wheeler LCV CE 1% 2 Wheeler 17% 20% 5% 7% 2 Wheeler 9% MUV 11% MUV Used Vehicles 10% 27% Used Vehicles 33% CAR
Slide 29: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 12,962 * 12,766 * 12,354 6% 5% 6% 5% 6% * 11,731 816 674 * 11,301 738 5% 5% 5% 7% 6% Yield Low 914 745 627 613 653 640 16% 15% 17% 17% 584 2,048 2,134 16% 1,853 1,860 Medium Yield 1,
Slide 30: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 88,638 7% 7% 7% 7% 6% * 84,498 7% 7% 7% 7% 7% * 79,640 5,718 * 75,396 5,548 5,925 Low Yield * 71,065 5,201 5,670 20% 20% 20% 21% 21% 4,906 5,221 4,721 5,058 17,543 4,878 16,660 15,872 9% 9% 1
Slide 31: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *88,638 * 84,498 27 48,348 42 *71,065 * 66,938 39,699 146 215 *52,881 693 88,611 84,456 25,439 70,918 66,723 52,187 12,766 11,301 FY22 FY23 FY24 Q1 FY24 Q1 FY25 On Book Assignment * Total AUM
Slide 32: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 11,274 2,532 2,272 8,851 2,054 7,721 3,255 2,498 620 501 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 31
Slide 33: Loan Against Property
Loan Against Property ary Colours 32
Slide 34: Loan Against Property – Q1FY25 Performance
Loan Against Property – Q1FY25 Performance • Disbursements grew by 45% in Q1FY25 to Rs. 3,874 Cr as Disbursements compared to Q1FY24. Asset under • AUM has grown by 41% YoY. management Loss and provisions • Loan losses at 0.1% in Q1FY25 from -0.1% in Q1FY24 Profit before tax • PBT grew by 31% in Q1F
Slide 35: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL MI&A Research estimates the LAP segment to • The focus is on increasing the market share backed by grow 25-26% for NBFCs in fiscal 2024. Similarly, range consistent disbursement growth and collections bound growth is an
Slide 36: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 32,135 759 13,554 * 29,859 823 * 22,866 * 21,588 1,030 1,114 9,299 * 16,795 1,544 31,376 29,036 20,474 21,836 5,536 15,250 3,874 2,679 FY22 FY23 FY24 Q1 FY24 Q1 FY25 On Book Assigned
Slide 37: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 3,208 973 759 2,292 1,807 469 1,006 292 704 224 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 36
Slide 38: Home Loans
Home Loans Primary Colours 37
Slide 39: Home Loans – Q1FY25 Performance
Home Loans – Q1FY25 Performance • Disbursements grew by 22% in Q1FY25 to Rs. 1,778 Cr as Disbursements compared to Q1FY24. Asset under • AUM have grown by 53% YoY. management Loss and provisions • Loan losses at 0.3% in Q1FY25 from -0.1% in Q1FY24. Profit before tax • PBT grew by 88% in Q1FY25 to Rs
Slide 40: 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 leverage its strength in penetrating 12-14% in FY25 to smallest villages and towns. Chola will focus on penetrating untapped rural areas across India and provide a
Slide 41: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *14,565 *13,404 341 356 6,362 *9,528 *8,451 413 433 3,830 14,224 *5,590 13,048 527 9,115 8,018 1,778 1,454 5,063 1,896 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 On Book Assigne
Slide 42: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 489 1,756 321 971 692 163 558 222 344 87 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 41
Slide 43: Funding Profile
Funding Profile < Chola axe murugappa Financial Holdings 42 igapp%
Slide 44: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 19.07 19.62 18.57 18.03 17.13 3.93 3.13 3.47 2.35 3.27 15.14 16.49 14.78 15.10 14.76 FY21 FY22 FY23 FY24 Q1FY25 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Tier 2 includes 1.49% % of CCD which is co
Slide 45: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 1,08,140 * 1,19,470 * 1,23,103 * 1,34,474 * 1,49,902 1% 2% 3% 3% 4% 2% 6% 2% 2% 7% 5% 2% 5% 3% 3% 3% 3% 3% 15% 16% 17% 18% 17% 3% 4% 2% 2% 4% 5% 3% 5% 7% 6% 14% 12% 11% 11% 11% 49% 49% 48% 46% 46% 5% 4% 4% 4% 4% Q1 FY24 Q
Slide 46: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type * 1,08,140 * 1,19,470 * 1,23,103 * 1,34,474 * 1,49,902 4% 5% 5% 7% 6% 15% 16% 17% 17% 18% 1%3% 3% 0.4% 3% 2% 3% 3% 1% 0.3% 3% 2% 1% 3% 4% 57% 56% 54% 53% 52% 1% 1% 1% 1% 6% 6% 6% 1% 7% 7% 7% 8% 8% 5% 8% 3% 3% 3% 3% 3% Q1FY24
Slide 47: ALM Statement as of 30th Jun 2024 (As per IND AS)
ALM Statement as of 30th Jun 2024 (As per IND AS) (₹Cr) ALM snapshot as on 30th Jun 2024 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 6,904.02 12.73 2,329.23 200.84 417.72 2,063.06 867.47 1,528.94 14,324.00 Advances 5,333.32 5,103.70 3,
Slide 48: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited Financial data in this section is as per IGAAP 47
Slide 49: 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 50: Key Financial Parameters (Rs. Crs)
Key Financial Parameters (Rs. Crs) Particulars – In Rs. Cr FY'23 FY’24 Q1 FY’24 Q1 FY’25 Gross Written Premium$ 6200 7598 1701 1945 NEP 4019 5079 1172 1319 U/W Results -599 -659 -171^ -128^ Investment income (Net) 887 1116 265 316 PBT 264 444 88 179 PAT 199 331 65 134 Net worth (Ex fair value change
Slide 51: LOB Wise - Monthly Growth Trends of Multi-line Insurers
LOB Wise - Monthly Growth Trends of Multi-line Insurers Other Particulars Months Fire Comml Motor Health PA Crop Others Total In Q1, Chola MS Lines Apr'24 12.8% 7.4% 18.3% 14.0% 22.5% -31.6% 44.7% 15.3% • Overall growth higher May'24 4.2% 12.7% 12.6% 13.4% 31.2% 73.9% 22.5% 14.0% Industry than indus
Slide 52: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth GDPI* growth over years – Faster growth in Last 2 Years Rs In Crs (CAGR FY2020 - FY 2024 = 14.4%) Q1 FY’2025 7533 6156 Growing Market 4398 4388 4824 Share 1912 5.4% FY'20 FY'21 FY'22 FY'23 FY'24 Q1 FY'25 Market share in Motor Insurance Growt
Slide 53: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) Includes RI Inwards 800 0 7598 35. 0% 14.3% 700 0 6200 30.8% 9.7% 30. 0% 600 0 26.7% 1945 25. 0% 500 0 22.5% 5.2% 20. 0% 400 0 300 0 1701 14.3% 15. 0% 10. 0% 2.9% 200 0 5.0 % 100 0 0 0.0 % FY'23 FY'24 Q1 FY'24 Q1 FY'25 FY'23
Slide 54: Capital efficiency - No Capital Infusion Since FY'15
Capital efficiency - No Capital Infusion Since FY’15 Rs In Crs 2160 2492 2226 2625 Net Worth 1718 2050 1784 2183 442 442 442 442 FY'23 FY'24 Q1 FY'24 Q1 FY'25 Capital Invested Reserves ▪ Accumulated profits @ 82.2% of Net worth (Rs. 2625 Crs) as on Jun’24 ▪ Total Capital infused is Rs. 442 Crs ▪ Tie
Slide 55: Consistent Operating Metrics
Consistent Operating Metrics Particulars 2021-22 2022-23 2023-24 Q1 FY’25 Number of Customers (Live Customer) No in Lacs 254 336 462 476 Number of policies issued No in Lacs 99 121 137 29 Market Presence(Branch + CIE + VO) No’s 638 604 669 668 Bank Branches No’s 34000+ 34000+ 38000+ 38000+ Motor OD
Slide 56: Claims Ratio (%)
Claims Ratio (%) Line of Business FY'23 FY’24 Q1 FY’24 Q1 FY’25 Motor OD 71.7% 72.8% 74.9%^ 75.1%^ Motor TP 77.0% 76.0% 77.2% 72.3% Motor Total 75.6% 75.1% 76.5% 73.2% Health, Travel & PA 66.6% 66.7% 64.3% 69.7% Crop$ NA 104.2% NA 31.9% Fire# 39.0% 78.5% 105.3%^ 116.2%^ Marine 62.6% 76.3% 59.4% 54.0
Slide 57: Investment Book Overview (Rs In Crs)
Investment Book Overview (Rs In Crs) Category Mar-23 Mar-24 Jun-23 Jun-24 Govt Securities 9579 10121 9429 10318 PSU / Corporate Bonds 4483 5475 4915 5334 Equity 321 583 404 706 Others 300 322 331 261 Grand Total 14683 16501 15079 16620 Yield with profit on sale 6.5% 7.1% 6.7% 6.9% Yield without prof
Slide 58: 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% 65.1% 75.6% 75.1% 73.2% 5.3% 5.4% 5.4% 16.4% 23.1% 19.6% 16.7% 15.9% 4.9% 44.6% 43.8% 43.8% 58.2% 47.6% 4.6% 35.9% 39.5% 40.3% 25.4% 2
Slide 59: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment 6.8% 6.3% 6.2% 6.9% 3.1% 2.1% 1.8% 2.9% 6.1% 6.0% 6.9% 7.9% 2.5% 7.9% 7.6% 7.5% 7.5% 13.3% 13.6% 12.0% 16.3% 16.0% 71.0% 70.5% 65.9% 66.0% 59.7% FY'22 FY'23 FY'24 Q1 FY'24 Q1 FY'25 Motor Commercial Retail Health Group health PA & Others Crop ▪
Slide 60: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs Commercial 462 476 19.9% 336 254 165 Retail 80.1% FY'21 FY'22 FY'23 FY'24 Q1 FY'25 Significant growth in retail oriented policies Geographic Presence –
Slide 61: Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream
Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream Channel wise Mix% 6.3% 5.1% 8.8% 6.0% 10.4% 5.1% 5.4% 6.7% 11.0% 8.9% 32.5% 40.4% 36.5% 43.2% 41.7% 34.9% 31.1% 28.9% 29.2% 27.0% 21.2% 18.1% 14.5% 15.2% 12.0% FY'22 FY'23 FY'24 Q1 FY'24 Q1 FY'25 Banks Corporate Agent Captiv
Slide 62: Core System (PAS) upgraded for Motor Pvt Car
Core System (PAS) upgraded for Motor Pvt Car Agile configuration capabilities to enable • Private Car LOBs live on Contemporary Core PAS Platform (TCS BaNCS) from Q2 FY faster time to market with new product TCS Bancs launches • Central system of records for all transaction history Out of the box mi
Slide 63: 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 for transactions at scale & s
Slide 64: Glimpse of new Tech & Digital Capabilities across the value chain
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 65: 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) (CY23) (US$) (CY23) (US$) 9.3 7504 6.0 2.6 2.1 2.3 1968 1.8 1.8 1294 693 1.0 0.7 0.6 234 183 141 98 28 25 China Indonesia Brazil UK India Japan Russi
Slide 66: 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) CAGR (Last 15 Years) = 14.8% Growth of 13.3% over Q1 FY’24 2,89,738 2,56,912 2,20,772 1,89,302 1,98,724 1,50,572 1,70,036 1,28,213 77,541 84,686 96,394 58,357
Slide 67: 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 42.5% 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: 13% 65,
Slide 68: Favorable Regulations Aiding Growth
Favorable Regulations Aiding Growth Amendment to Acts expected to improve profitability and growth across segments Growth Oriented Requiring Tweaks Impending Product Regulations Rural / Social / TP Obligations Courts’ recognition of amended MV Act Use and File across lines Claim initiation time
Slide 69: 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 68
Slide 70: 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 71: Thank You
Thank You <> Chola 2G Financial Holdings murugappa
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