Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (March 2016)
47 slides from Cholamandalam Investment And Finance's investor presentation, March 2016
Slide 1: Corporate Presentation – March 2016
Cholamandalam Investment and Finance Company Limited Corporate Presentation – March 2016
Slide 2: Table of Contents
Table of Contents Corporate Overview Business Overview Funding Profile Business Enablers Financial Performance Subsidiaries – Wealth Management 2
Slide 3: Corporate Overview
& Chola Enter a better life CORPORATE OVERVIEW it murugappa
Slide 4: Company's Highlights
Company’s Highlights 1 Positioning 2 Exceptional Lineage Established in 1978, one of India’s A part of the ₹ 269 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 ₹ 100bn1
Slide 5: Journey So Far
Journey So Far … Consistently profit making and dividend paying1 company since 1979 with a strong track FY - 2015 Infusion of record of dividends to shareholders CCPS of ₹ 5,000 mn FY - 2013 Total Assets under India Ratings Management Upgraded have crossed Sub-Debt from ₹ 200 bn AA- to AA Disburseme
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 ₹ 1,11,402 mn Finance Company and one of the leading financial provider for vehicle finance, (US$ 1,679 mn) business finance, home equity loans,
Slide 7: Strong Corporate Governance
Strong Corporate Governance “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 Institution 25% s, 12% Public, 5% 0% FII, 30% Promoters, -25% 53% Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Chola Finance Sensex Promoters share holding of 53.1% includes Tube Investments – 46.26%, Mar 15 Jun 15 Sep 15 Dec 15 Ma
Slide 11: Corporate Overview
Corporate Overview Business Segments Overview Portfolio Breakup AUM * (₹ mn) FY13 FY14 FY15 FY16 YoY Growth Vehicle Finance Vehicle Finance TRACTOR, OLDER 10% CE, 0% On Book 1,19,907 1,41,787 1,49,215 1,79,144 20% VEHICLES, HCV, 14% 13% Assigned 23,778 28,857 27,171 21,859 -20% REFINANCE, Managed As
Slide 12: Corporate Overview
Corporate Overview FY13 FY14 FY15 FY16 YoY Disbursements (₹ mn) Growth Vehicle Finance 98,820 1,01,281 93,627 1,23,830 32% Home Equity 21,612 28,097 30,434 34,764 14% Gold 591 - 618 - - MSME 132 1,371 2,490 3,253 31% Home Loans 28 393 892 1,746 96% Agri – – 15 209 Total 1,21,183 1,31,142 1,28,076 1,
Slide 13: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (1) Branch Network 518 529 534 534 94 Punjab (26) Himachal 181 153 167 Pradesh (5) 164 Uttarakhand (7) 153 180 Harayana 141 (12) 144 Delhi (8) 104 123 102 68 83 61 53 Rajasthan (48) UP (32) 31 32 32 49 Assam (9) 2012-2013 2013-2014* 2014-2015 2015-2016 Bi
Slide 14: Chola - Financial Summary
Chola - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) 2,96,504 1,63,803 2,54,525 2,32,534 41643 1,31,142 1,28,076 5,208 1,89,981 35482 1,21,183 34,764 40874 751 1,764 4,015 28,097 25287 21,612 30,434 164695 191661 219043 254861 98,820 1,01,281 93,627 1,23,830 FY13 FY14 FY15 F
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% 3.8% 7.9% 3.4% 3.4% 3.4% 7.6% 7.7% FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.7% 1.8% 0.3% 3.6% 1.5% 1.4% 3.0% 2.8% 3.0% 0.8%
Slide 16: Performance Highlights – Q4FY16 & FY16
Performance Highlights – Q4FY16 & FY16 Disbursements Profit after Tax ROTA (PBT) Book Value EPS ROE Q4-FY16 ₹ 49,413 mn ₹ 1,920 mn 4.6% ₹ 234.2 ₹ 49.3 21.5% 41% 43% 27% 15% 30% 22% Q4-FY15 ₹ 35,089 mn ₹ 1,356 mn 3.6% ₹ 203.5 ₹ 37.9 17.6% Disbursements Profit after Tax ROTA (PBT) Book Value EPS ROE F
Slide 17: Portfolio Performance
Portfolio Performance 3.5% 3.1% 2.0% 2.1% 1.9% 1.4% 1.0% 1.1% 1.1% 0.8% 0.7% 0.2% 2012-13 2013-14 2014-15 2015-16 (6 months+) (6 months+) (5 months+) (4 months+) GNPA Provision NNPA 17
Slide 18: Update: FY16
Update: FY16 Disbursements Disbursement for FY16 stood at Rs. 16380 Cr, a growth of 28% YoY. PAT PAT for FY16 stood at Rs. 569 Cr, a growth of 31% YoY. RoE Return on equity at 16.7% in FY16, a growth of 5% YoY. New business Invested Rs. 8 Cr in White Data System India Private Limited in March 2016 A
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% 44% 38% 2,38,513 43% 1,93,211 44% 1,76,639 35% 42% 1,41,694 27% 33% 21% 20% Mar-13 Mar-14 Mar-15 Mar-16 HCV SCV/3W Pick ups LCV Mar-13 Mar-14 Mar-15 Mar-16 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 – FY16
Vehicle Finance - Disbursement / Portfolio Mix – FY16 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% KERALA 4% MAHARASHTRA 12% Pondicherry 0% 12% KERALA 4% Pondicherry 0% TELANGANA 3
Slide 25: Vehicle Finance - Financial Summary
Vehicle Finance - Financial Summary Maintaining a healthy growth in Disbursement and PBT while coping with a sustained slowdown in the SCV segment Disbursements Assets Under Management (₹ mn) (₹ mn) 2,01,003 1,70,645 1,76,386 21859 1,23,830 1,43,685 27171 28857 98,820 1,01,281 23778 93,627 119907 14
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% 7.3% 7.5% 3.8% 3.8% 7.1% 3.5% 3.6% FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.7% 2.0% 0.1% 3.0% 3.0% 1.6% 1.6% 2.1%
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 (₹ mn) Assets Under Management (₹ mn) 88,518 72,799 19784 34,764 58,604 30,434 8312 28,097 43,369 12016 1508 21,612 41861 46588 64487 68734 FY13 FY14 FY15 FY16 On Book Assigned FY13 FY14 FY15 FY16 Income Profit Before Tax (₹ mn) (₹ mn) 11,242 9,409 2,609
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% 5.6% 5.4% 2.0% 5.1% 1.6% 1.3% 1.2% FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 0.7% 0.0% 0.7% 3.8% 3.7% 3.3% 3.2% 0.5% 0.3
Slide 32: Funding Profile
Funding Profile 32
Slide 33: CAR, Credit Rating and ALM Statement
CAR, Credit Rating and ALM Statement Tier I Tier II ALM Statement as on Mar 2016 ₹ mn Capital Adequacy Ratio Time Buckets Outflows Inflows Mismatch Cum Mismatch 1–14 Days 4,747 9,155 4,409 4,409 21.24 19.04 19.68 15–30/31 Days 1,147 3,146 1,999 6,408 17.23 Over 1–2 Months 11,126 10,247 (879) 5,529 8
Slide 34: Diversified Borrowings Profile
Diversified Borrowings Profile 2,25,762 ₹ mn 1,94,752 1,80,932 1,52,890 1,11,200 1,01,965 91,812 70,962 27,560 8,705 5,647 4,975 22,038 12,449 26,006 21,111 39,687 48,466 32,276 35,654 19,837 21,813 26,087 26,087 Mar-13 Mar-14 Mar-15 Mar-16 Tier II Capital Debentures CC / WCDL Commercial Papers / IC
Slide 35: Business Enablers
--- TECHNOLOGY LEVERAGE
Slide 36: Human Resources
Human Resources Employee Strength of Chola as on 31st Mar 2016 - 13590 On roll 19.8% Off roll 80.2% We have 2886 on roll employees which includes 240 professionals (CA,CS, ICWA, Lawyers and engineers) and 494 MBAs 36
Slide 37: Technology
Technology Overview: Applications (Cont’d) Planning & Budgeting – Provides a world class planning tool The company deploys a hybrid resource model that using Hyperion for inclusive budgeting by utilising both top- optimises use of vendor platforms and resources and at the down and bottom-up approach
Slide 38: 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 39: Financial Performance
Financial Performance nier a better life 39 Murugappa
Slide 40: Profit and Loss Account
Profit and Loss Account ₹ mn Particulars FY13 FY14 FY15 FY16 Disbursements 1,21,183 1,31,142 1,28,076 1,63,803 Operating Income 25,557 32,628 36,912 41,937 Finance Charges 14,110 17,711 19,604 20,508 Net Income Margin 11,447 14,918 17,308 21,429 Expenses 5,696 6,582 7,489 8,449 Loan Losses and Std A
Slide 41: Balance Sheet
Balance Sheet ₹ mn Particulars Mar-13 Mar-14 Mar-15 Mar-16 Equity and Liabilities Shareholders’ Funds 19,648 22,947 31,733 36,574 Current Liabilities 77,847 92,760 78,892 1,27,214 Non-current Liabilities 84,354 99,761 1,28,106 1,15,095 Total 1,81,848 2,15,468 2,38,732 2,78,883 Assets Non-current Ass
Slide 42: Wealth Management
Wealth Management & Chola 2G Enter a better life 42 Murugappa
Slide 43: Wealth Management
Wealth Management ₹ mn Wealth management services for mass Cholamandalam Distribution Services affluent and affluent customer segments. Ltd 116 118 131 126 Retail Distribution of a wide range of products – Investments, Life Insurance, 47 57 47 General Insurance , Home loan & mortgage 20 products
Slide 44: NPA Provisioning Standards
NPA Provisioning Standards RBI Norms Vehicle Home (as on 31st Mar 2016) Finance Equity 5 to 20.99 Bucket – 10% VF Prime, CE Home Equity & 21 to 32.99 Bucket – 20% 4 to 5.99 Bucket – 10% Home Loan 33 to 56.99 Bucket – 30% 6 to 23.99 Bucket – 25% 4 to 5.99 Bucket – 10% Above 57 Bucket – 50% Above 24 B
Slide 45: 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 46: 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 47: Thank You
ey ae & Chola = Enter a better life Thank You it murugappa
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