Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (September 2017)
47 slides from Cholamandalam Investment And Finance's investor presentation, September 2017
Slide 1: Corporate Presentation – September 2017
Cholamandalam Investment and Finance Company Limited Corporate Presentation – September 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
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Slide 4: Company Highlights
Company Highlights 1 Positioning 2 Exceptional Lineage Established in 1978, one of India’s A part of the ₹ 300 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 ₹ 170bn1 w
Slide 5: Journey So Far
Journey So Far … FY 2017 • Total AUM crossed ₹ 369 bn Consistently profit making and dividend paying1 company since 1979 FY 2015 with a strong track record of dividends to shareholders • Brickworks • Infused Capital of upgraded to AA+ ₹ 5,000 mn through CCPS • Adopted GNPA FY 2013 Recognition at 90
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 ₹ 1,70,657 mn Finance Company and one of the leading financial provider for vehicle finance, (US$ 2,611 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: Corporate Overview
Corporate Overview Shareholding Pattern Chola Finance - Share Price Growth Institutions, 20% 16% 0% Public, 7% -20% Promoters, -40% FII, 24% 53% Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Chola Finance Sensex Promoters share holding of 53.13% includes Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Tube Investments
Slide 9: Corporate Overview
Corporate Overview Business Segments Overview Portfolio Breakup – 30-Sep-2017 Business AUM * (₹ mn) FY15 FY16 FY17 H1FY17 H1FY18 YoY Growth Vehicle Finance Vehicle Finance OLDER TRACTOR, 7% CE, 3% On Book 1,49,215 1,79,144 2,02,709 1,93,539 2,26,897 17% VEHICLES, 14% HCV, 17% Assigned 27,171 21,859
Slide 10: Company Performance – At a Glance
COMPANY PERFORMANCE – AT A GLANCE FY15 FY16 FY17 H1FY17 H1FY18 YoY Disbursements (₹ mn) Growth Vehicle Finance 93,627 1,23,830 1,44,710 65,733 81,135 23% Home Equity 30,434 34,764 30,559 18,927 15,695 -17% MSME 2,490 3,253 6,663 3,420 3,180 -7% Home Loans 892 1,746 3,247 1,523 2,643 74% Agri, New In
Slide 11: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (2) Branch Network 703 725 120 Himachal 534 534 203 Punjab (26) Pradesh (5) 167 94 249 199 Harayana Uttarakhand (10) 164 180 198 (16) Delhi (12) 144 162 102 83 103 122 53 49 32 36 36 Rajasthan (55) UP (44) Assam (14) FY15 FY16 FY17 H1FY18 Bihar (25) A B C
Slide 12: Chola - Financial Summary
Chola - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *1,85,913 *1,63,803 10,644 *3,74,502 5,208 *3,51,097 *3,31,800 *1,28,076 30,559 *3,03,624 34,764 *2,61,906 62,633 56,996 4,015 *1,03,453 44,547 *90,049 6,623 41,643 30,434 35,482 5,389 15,695 18,927 65,733 81,135 2,26,423
Slide 13: Chola - Financial Summary (Cont'd)
Chola - Financial Summary (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 9.5% 3.9% 8.7% 8.6% 8.4% 3.4% 3.6% 3.5% 7.9% 3.4% FY15 FY16 FY17 H1FY17 H1FY18 FY15 FY16 FY17 H1FY17 H1FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1.8% 1.7% 4.4% 3.9% 3
Slide 14: Performance Highlights – Q2FY18 & H1FY18
Performance Highlights – Q2FY18 & H1FY18 Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE* Q2-FY18 ₹ 54,923 mn ₹ 2,272 mn 4.50% ₹ 298.2 ₹ 57.69 19.7% 24% 32% 21% 17% 33% 13% Q2-FY17 ₹ 44,441 mn ₹ 1,709 mn 3.72% ₹ 255.7 ₹ 43.4 17.3% Disbursements Profit after Tax ROTA (PBT) Book Value EP
Slide 15: Asset Quality
ASSET QUALITY 5.0% 0.45 39.7% 0.4 4.0% 34.8% 35.1% 0.35 31.6% 33.1% 0.3 3.0% 0.25 4.7% 4.7% 4.5% 0.2 2.0% 3.5% 3.2% 0.15 3.1% 3.2% 2.9% 1.0% 2.0% 2.1% 0.1 1.4% 1.5% 1.6% 1.6% 1.1% 0.05 0.0% 0 2014-15 2015-16 2016-17 Q1 FY18 Q2 FY18 (5 months+) (4 months+) (3 months+) (3 months+) (3 months+) GNPA Pro
Slide 16: Highlights – H1FY18
Highlights – H1FY18 Disbursements Disbursement for H1FY18 stood at Rs. 103,453 mn, a growth of 15% YoY. PAT PAT for H1FY18 stood at Rs. 4,320 mn, a growth of 28% YoY. RoE Return on equity at 19.3% in H1FY18, a growth of 8% YoY. AUM Total assets under management has crossed Rs 390bn Rating Upgrade In
Slide 17: Business Overview
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Slide 18: Vehicle Finance
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Slide 19: Vehicle Finance - Industry
Vehicle Finance - Industry Trend in Domestic M & HCV Sales (in Units) Trend in Domestic Car & MUV (in Units) Sales CAGR @10% CAGR @4% Chola @29% Chola @26% 13,11,601 73,006 62,383 62,406 8,95,841 51,700 7,88,795 40,928 6,24,886 6,69,309 Q2 FY-15 Q2 FY-16 Q2 FY-17 Q2 FY-18 Q2 FY-22 (E) Q2 FY-15 Q2 FY
Slide 20: Vehicle Finance - Industry
Vehicle Finance - Industry Trend in Domestic LCV Sales (in Units) Trend in Domestic SCV Sales (in Units) CAGR @12% 1,47,143 CAGR @14% Chola @22% Chola @19% 89,566 93,512 80,361 70,917 71,759 52,724 53,030 41,996 42,504 Q2 FY-15 Q2 FY-16 Q2 FY-17 Q2 FY-18 Q2 FY-22 (E) Q2 FY-15 Q2 FY-16 Q2 FY-17 Q2 FY
Slide 21: Vehicle Finance – Business Model & Positioning
Vehicle Finance – Business Model & Positioning Industry Industry Low Low Low Chola Low Chola CV Position PV Position Principal Operator > 50 Vehicles Salaried Large Operators 26- 50 R R R vehicles HCV E R E I T I T S Medium Operators 10 -25 – U S Self Employed U K HCV & LCV vehicles R K with Financi
Slide 22: Vehicle Finance – Business Model & Positioning
Vehicle Finance – Business Model & Positioning Industry Low Low Industry Low Low Chola Chola Tractor Position CE Position Large Farmer Super Strategic Strategic Captive Users / R Customer R R Prior Vehicles E R Captive Users / E I T I Prior Vehicles T S U S U K Medium Farmers Medium Retail Operator
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 – H1FY18
Vehicle Finance - Disbursement / Portfolio Mix – H1FY18 Well diversified across geography & product segments Disbursements - State wise Portfolio – State wise MP 6% AP 5% KARNATAKA 5% MP 7% AP 5% MAHARASHTRA KARNATAKA 5% 12% KERALA 4% MAHARASHTRA 11% Pondicherry 0% KERALA 4% Pondicherry 0% TELANGANA
Slide 25: Vehicle Finance - Financial Summary
Vehicle Finance - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *2,56,993 *2,36,306 1,44,710 *2,14,808 30,096 *2,01,003 33,597 1,23,830 *1,76,386 21,269 21,859 27,171 93,627 81,135 65,733 1,49,215 1,79,144 2,02,709 1,93,539 2,26,897 FY15 FY16 FY17 H1FY17 H1FY18 FY15 FY16 FY17
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) 4.0% 8.8% 3.8% 3.8% 3.8% 8.5% 8.4% 3.6% 8.1% 7.5% FY15 FY16 FY17 H1FY17 H1FY18 FY15 FY16 FY17 H1FY17 H1FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 3.7% 3.2% 3
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 138 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 Em
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) 34,764 30,434 30,559 *95,927 *95,687 *96,334 *88,518 *72,799 29,036 23,278 26,900 8,312 19,784 18,927 15,695 64,487 68,734 66,891 72,409 69,434 FY15 FY16 FY17 H1FY17 H1FY18 FY15 FY16 FY17 H1FY17 H1FY18 On Book Assign
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) 5.4% 5.1% 4.4% 4.5% 4.4% 1.3% 1.3% 1.2% 1.2% 1.2% FY15 FY16 FY17 H1FY17 H1FY18 FY15 FY16 FY17 H1FY17 H1FY18 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 3.7% 1.0% 3.2%
Slide 32: Funding Profile
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Slide 33: CAR, Credit Rating and ALM Statement
CAR, Credit Rating and ALM Statement ALM Statement as on Sep 2017 ₹ mn Tier I Tier II Cum Time Buckets Outflows Inflows Mismatch Capital Adequacy Ratio Mismatch 21.24 1–14 Days 5,085 11,995 6,910 6,910 19.68 19.29 15–30/31 Days 8,023 8,486 463 7,373 18.64 18.69 Over 1–2 Months 10,495 10,573 78 7,451
Slide 34: Diversified Borrowings Profile
Diversified Borrowings Profile *2,68,891 ₹ mn *2,42,068 *2,48,130 *2,25,762 80,497 *1,94,752 77,072 97,646 1,11,200 32,550 1,01,965 27,035 9,657 6,631 34,740 10,491 4,975 27,560 12,449 1,13,850 22,038 1,02,992 79,165 39,687 48,466 26,087 26,087 28,337 26,087 32,337 Mar-15 Mar-16 Mar-17 H1FY17 H1FY18
Slide 35: Business Enablers
--- TECHNOLOGY LEVERAGE
Slide 36: Technology Updates
Technology Updates Technology Infrastructure Systems of Record Delivering resilient & scalable environment Stable foundation for core products & services Link load balancer for network resilience New instance setup to support Storage enhancements to improve End-of-Month batch Vishesh perform
Slide 37: Risk Management
Risk Management Risk Management Committee (RMC): Risk Management (contd..) RMC comprises Chairman, three Independent Directors and Post sanction monitoring helps to identify portfolio trends and the Managing Director besides the senior management as implement necessary policy changes members. •
Slide 38: Financial Performance
Financial Performance nier a better life 3g Murugappa
Slide 39: Profit and Loss Statement – Quarterly
Profit and Loss Statement – Quarterly ₹ mn Growth % Growth % Particulars Q2FY18 Q1FY18 Q2FY17 Q-o-Q Y-o-Y Disbursements 54,923 48,530 44,441 13% 24% Closing Assets (Managed) 3,74,502 3,60,791 3,31,800 4% 13% Closing Assets (Balance Sheet) 3,17,506 2,94,508 2,87,253 8% 11% Operating Income 12,960 12,
Slide 40: Profit and Loss Statement – Year to Date
Profit and Loss Statement – Year to Date ₹ mn Particulars FY15 FY16 FY17 H1FY17 H1FY18 Disbursements 1,28,076 1,63,803 1,85,913 90,049 1,03,453 Closing Assets (Managed) 2,61,906 3,03,624 3,51,097 3,31,800 3,74,502 Closing Assets (Balance Sheet) 2,26,423 2,61,980 2,88,464 2,87,253 3,17,506 Operating
Slide 41: Balance Sheet
Balance Sheet ₹ mn Particulars Mar-15 Mar-16 Mar-17 Sep-16 Sep-17 Equity and Liabilities Shareholders’ Funds 31,733 36,574 42,849 39,961 46,608 Current Liabilities 78,892 1,27,214 1,05,206 1,25,181 1,27,450 Non-current Liabilities 1,28,106 1,15,095 1,58,877 1,40,502 1,62,956 Total 2,38,732 2,78,883
Slide 42: Subsidiaries
Subsidiaries & Chola 2G Enter a better life 42 Murugappa
Slide 43: Subsidiaries
Subsidiaries ₹ mn ₹ mn Cholamandalam Distribution Services Cholamandalam Securities Ltd 144 153 Ltd 128 131 126 134 82 90 57 65 32 22 47 61 46 16 15 10 25 18 FY15 FY16 FY17 H1FY17 H1FY18 FY15 FY16 FY17 H1FY17 H1FY18 Income PAT Income PAT Wealth management services for mass affluent and affluent
Slide 44: 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 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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