Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (March 2017)
46 slides from Cholamandalam Investment And Finance's investor presentation, March 2017
Slide 1: Corporate Presentation – March 2017
Cholamandalam Investment and Finance Company Limited Corporate Presentation – March 2017
Slide 2: Table of Contents
Table of Contents Corporate Overview Business Overview Funding Profile Business Enablers Financial Performance Subsidiaries 2
Slide 3: Corporate Overview
& Chola Enter a better life CORPORATE OVERVIEW it murugappa
Slide 4: Company Highlights
Company Highlights 1 Positioning 2 Exceptional Lineage Established in 1978, one of India’s A part of the ₹ 295 bn Murugappa leading NBFC’s, focused in the rural Group – founded in 1900, one of and semi-urban sector with a India's leading business conglomerates market capitalisation of ₹ 151bn1 w
Slide 5: Journey So Far …
Journey So Far … FY - 2016 Invested in White Data Systems India Consistently profit making and dividend paying1 company since 1979 with a strong track Ltd with record of dividends to shareholders 63% stake CCPS got converted to FY - 2014 Equity shares Total Assets @ ₹ 407 under Management Introduced
Slide 6: Major Companies – Murugappa Group
Major Companies – Murugappa Group Market Company Name Description Capitalisation Cholamandalam Investment and Finance Company Limited is a Non Banking ₹ 1,50,722 mn Finance Company and one of the leading financial provider for vehicle finance, (US$ 2,325 mn) business finance, home equity loans,
Slide 7: Spirit of Chola
SPIRIT OF CHOLA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 7
Slide 8: Management – Board Level
Management – Board Level Mr. M.B.N. Rao – Chairman & Independent Director •Is a graduate in agriculture, an Associate of the Chartered Institute of Bankers, London, a Certified Associate of the Indian Institute of Bankers and a Fellow of the Indian Institute of Banking & Finance. Holds a Diploma in
Slide 9: Management – Board Level
Management – Board Level Mr. Nalin Mansukhlal Shah – Independent Director •Is a Chartered Accountant from the Institute of Chartered Accountants in England & Wales. •Has over 32 years of experience in banking and financial services industries. •Was a member of the Governing Board of Deloitte India f
Slide 10: Corporate Overview
Corporate Overview Shareholding Pattern Chola Finance - Share Price Growth Institutions, 95% 18% 75% 55% Public, 6% 35% 15% -5% Promoters, -25% FII, 23% 53% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Chola Finance Sensex Promoters share holding of 53.13% includes Tube Investments – 46.22%, Mar 16 Jun 16
Slide 11: Corporate Overview
Corporate Overview Business Segments Overview Portfolio Breakup AUM * (₹ mn) FY14 FY15 FY16 FY17 YoY Growth Vehicle Finance Vehicle Finance OLDER TRACTOR, 9% CE, 3% On Book 1,41,787 1,49,215 1,79,144 2,02,709 13% VEHICLES, HCV, 17% 13% Assigned 28,857 27,171 21,859 33,597 54% REFINANCE, Managed Asse
Slide 12: Company Performance – At a Glance
COMPANY PERFORMANCE – AT A GLANCE FY14 FY15 FY16 FY17 YoY Disbursements (₹ mn) Growth Vehicle Finance 1,01,281 93,627 1,23,830 1,44,710 17% Home Equity 28,097 30,434 34,764 30,559 -12% Gold - 618 - - - MSME 1,371 2,490 3,253 6,663 105% Home Loans 393 892 1,746 3,247 86% Agri – 15 209 734 251% Total
Slide 13: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (2) Branch Network 703 Himachal 529 534 534 203 Punjab (26) Pradesh (5) 153 167 94 199 Harayana Uttarakhand (9) 164 153 180 (16) Delhi (11) 144 162 123 102 68 53 83 103 32 32 49 36 Rajasthan (55) UP (44) Assam (14) FY14 * FY15 FY16 FY17 Bihar (24) A B C D
Slide 14: Chola - Financial Summary
Chola - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *1,85,913 *3,41,670 *1,63,803 *2,96,504 10,644 *2,54,525 62,633 *1,31,142 *1,28,076 5,208 30,559 *2,32,534 1,764 4,015 34,764 41,643 40,874 35,482 28,097 30,434 1,44,710 1,01,281 93,627 1,23,830 1,91,661 2,19,043 2,54,861
Slide 15: Chola - Financial Summary (Cont’d)
Chola - Financial Summary (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 8.7% 8.6% 3.4% 3.6% 7.9% 3.4% 3.4% 7.7% FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.8% 1.7% 3.9% 1.5% 3.6% 2.8% 3.0% 1.1% FY14 FY15
Slide 16: Performance Highlights – Q4FY17 & FY17
Performance Highlights – Q4FY17 & FY17 Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE* Q4-FY17 ₹ 52,130 mn ₹ 2,195 mn 4.7% ₹ 276.0 ₹ 57.0 21.0% 5% 14% 3% 18% 15% -2% Q4-FY16 ₹ 49,413 mn ₹ 1,920 mn 4.6% ₹ 234.2 ₹ 49.3 21.4% Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE*
Slide 17: Asset Quality
ASSET QUALITY 4.7% 3.5% 3.1% 3.2% 1.9% 2.0% 2.1% 1.4% 1.5% 1.1% 1.1% 0.7% 2013-14 2014-15 2015-16 2016-17 (6months+) (5 months+) (4 months+) (3 months+) GNPA Provision NNPA 17
Slide 18: Update: FY17
Update: FY 17 Disbursements • Disbursement for FY17 stood at Rs. 1,85,913 mn, a growth of 13% YoY. PAT • PAT for FY17 stood at Rs. 7,187 mn, a growth of 26% YoY. RoE • Return on equity at 18.0% in FY17, a growth of 8% YoY. AUM • AUM has crossed Rs.3,70,000 mn • Introduced GNPA recognition at 90 days
Slide 19: Business Overview
a - ae Chola peg z BUSINESS OVERVIEW murugappa 19
Slide 20: Vehicle Finance
& Chola Enter a better life 20
Slide 21: Vehicle Finance - Industry
Vehicle Finance - Industry Overall CV Mix (in Units) Trend in Domestic M & HCV Sales (in Units) 29% 24% 23% 38% 2,38,513 2,38,165 43% 45% 44% 1,76,641 42% 1,41,688 27% 33% 32% 20% Mar-14 Mar-15 Mar-16 Mar-17 HCV LCV SCV/3W Pick ups Mar-14 Mar-15 Mar-16 Mar-17 Trend in Domestic LCV Sales (in Units) T
Slide 22: Vehicle Finance – Business Model & Positioning
Vehicle Finance – Business Model & Positioning Low Losses 0.75 % CV Industry Low Chola Position ~65% of disbursements Rates Principal Operator are to micro & small New – 11 % to 12.5 % > 50 Vehicles enterprises and agri Used – 14.50% - 16 % based customer segment Large Operators 26- 50 vehicles HCV
Slide 23: Vehicle Finance - Key Differentiators
Vehicle Finance - Key Differentiators Quicker Turn Around Time – (TAT) Reputation as a long term and stable player in the market Strong dealer and manufacturer relationship Good penetration in Tier II and Tier III towns In house sales and collection team which is highly experienced and stable Low em
Slide 24: Vehicle Finance - Disbursement / Portfolio Mix – FY17
Vehicle Finance - Disbursement / Portfolio Mix – FY17 Well diversified across geography & product segments Disbursements - State wise Portfolio – State wise MP 6% AP 4% KARNATAKA 5% MP 6% AP 5% MAHARASHTRA KARNATAKA 5% 12% KERALA 4% MAHARASHTRA 12% Pondicherry 0% KERALA 4% Pondicherry 0% TELANGANA 3
Slide 25: Vehicle Finance - Financial Summary
Vehicle Finance - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *2,36,306 1,44,710 *2,01,003 1,23,830 33,597 *1,70,645 *1,76,386 21,859 1,01,281 28,857 27,171 93,627 1,41,787 1,49,215 1,79,144 2,02,709 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 On Book Assigned * Total AUM Incom
Slide 26: Vehicle Finance - Financial Summary (Cont’d)
Vehicle Finance - Financial Summary (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 8.5% 8.4% 7.5% 3.8% 3.8% 7.1% 3.5% 3.6% FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 3.2% 3.0% 2.0% 2.1% 2.0% 1.6% 1.7% 1.4%
Slide 27: Home Equity
Home Equity 27
Slide 28: Home Equity - Overview
Home Equity - Overview Asset Class Self Occupied Residential Property Long tenor loans serviced across 83 locations PAN India Major Players ICICI Bank HDFC Bank AXIS Bank Bajaj Finance PSU Banks Customer Segment Clear focus on the middle Socio Economic Class (SEC) of B & C Self Emp
Slide 29: Home Equity - Key Differentiators
Home Equity - Key Differentiators Process Differentiator One of the best turnaround times in the industry Personalised service to customers through direct interaction with each customer Pricing Pricing in line with Industry maintaining net interest margin Fee Income adequate to cover origina
Slide 30: Home Equity - Financial Summary
Home Equity - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *95,927 *88,518 34,764 *72,799 *58,604 19,784 29,036 30,434 30,559 28,097 8,312 12,016 46,588 64,487 68,734 66,891 FY14 FY15 FY16 FY17 On Book Assigned * Total AUM FY14 FY15 FY16 FY17 Income Profit Before Tax (₹ mn)
Slide 31: Home Equity - Financial Summary (Cont’d)
Home Equity - Financial Summary (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 5.6% 5.4% 1.6% 5.1% 4.4% 1.3% 1.2% 1.2% FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.0% 3.8% 3.7% 3.2% 0.7% 2.2% 0.5% 0.2% FY1
Slide 32: Funding Profile
Funding Profile 32
Slide 33: CAR, Credit Rating and ALM Statement
CAR, Credit Rating and ALM Statement ALM Statement as on Mar 2017 ₹ mn Cum Tier I Tier II Time Buckets Outflows Inflows Mismatch Mismatch Capital Adequacy Ratio 1–14 Days 6,430 9,387 2,957 2,957 21.24 19.68 15–30/31 Days 2,583 2,975 391 3,348 18.64 17.23 Over 1–2 Months 10,799 11,039 241 3,589 8.22
Slide 34: Diversified Borrowings Profile
Diversified Borrowings Profile ₹ mn *2,42,068 *2,25,762 *1,94,752 *1,80,932 77,072 1,11,200 1,01,965 27,035 91,812 6,631 5,647 27,560 4,975 12,449 26,006 22,038 1,02,992 39,687 48,466 35,654 21,813 26,087 26,087 28,337 Mar-14 Mar-15 Mar-16 Mar-17 Tier II Capital Debentures CC / WCDL Commercial Paper
Slide 35: Business Enablers
--- TECHNOLOGY LEVERAGE
Slide 36: Technology
Technology Overview: Applications Digitization has been the core focus for the technology function The core lending platform (FinnOne) was upgraded to Version across mobility, analytics, applications and infrastructure domains. 3.12. Similarly, the accounting platform (Oracle Financials) was The org
Slide 37: Risk Management
Risk Management Risk Management Committee (RMC): Risk Management (contd..) RMC comprises Chairman, three Independent Directors and ALCO meets every month to discuss treasury operations related the Managing Director besides the senior management as risk exposures within the financial risk managem
Slide 38: Financial Performance
Financial Performance nier a better life 3g Murugappa
Slide 39: Profit and Loss Account
Profit and Loss Account ₹ mn Particulars FY14 FY15 FY16 FY17 Disbursements 1,31,142 1,28,076 1,63,803 1,85,913 Operating Income 32,628 36,912 41,937 46,603 Finance Charges 17,711 19,604 20,508 22,308 Net Income Margin 14,918 17,308 21,429 24,295 Expenses 6,582 7,489 8,449 10,133 Loan Losses and Std
Slide 40: Balance Sheet
Balance Sheet ₹ mn Particulars Mar-14 Mar-15 Mar-16 Mar-17 Equity and Liabilities Shareholders’ Funds 22,947 31,733 36,574 43,129 Current Liabilities 92,760 78,892 1,27,214 1,05,206 Non-current Liabilities 99,761 1,28,106 1,15,095 1,58,877 Total 2,15,468 2,38,732 2,78,883 3,07,211 Assets Non-current
Slide 41: Subsidiaries
Subsidiaries & Chola 2G Enter a better life 41 Murugappa
Slide 42: Subsidiaries
Subsidiaries Cholamandalam Distribution Services ₹ mn Cholamandalam Securities Ltd ₹ mn 144 153 Ltd 134 128 118 131 126 80 57 61 32 47 47 16 22 (4) FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Income PAT Income PAT Wealth management services for mass affluent and affluent Broking services to HNIs and
Slide 43: NPA Provisioning Standards
NPA Provisioning Standards RBI Vehicle Home Other Norms Finance Equity Products 3 to 14.99 Months – 10% VF Prime, CE Home Equity & Rural Finance & 15 to 26.99 Months – 20% 3 to 5.99 Months – 10% Home Loan Unsecured Loans 27 to 50.99 Months – 30% 6 to 23.99 Months – 25% 3 to 5.99 Months – 10% 3 to 5.
Slide 44: Contact Us
Contact Us Our Registered Office: Cholamandalam Investment and Finance Company Limited (Chola), Dare House 1st Floor, No. 2, NSC Bose Road, Parrys, Chennai 600001. Toll free number : 1800-200-4565 (9 AM to 7 PM) Land Line: 044 – 3000 7172 http://www.cholamandalam.com Email-ID : Sujatha P-Sr. Vice Pr
Slide 45: 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 46: Thank You
ey ae & Chola = Enter a better life Thank You it murugappa
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