Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN

Cholamandalam Investment And Finance — Q1 FY2025 Earnings Presentation

109 slides from Cholamandalam Investment And Finance's earnings presentation, Jul 26, 2024

1. Slide 1: Exchange filing cover letter for investor presentation

   July 26, 2024 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, Dalal Street, Fort, Lower Parel, Mumbai 400 001 Mumbai 400 013 Dear Sir, Sub.: Investor Presentation for the quarter

2. Slide 2: Corporate Presentation - June 2024

   EMPOWERING ASPIRATIONS ENABLING AMBITIONS Cholamandalam Investment and Finance Company Limited CORPORATE PRESENTATION - June 2024

3. Slide 3: Table of Contents

   Table of Contents Image result for group overview 1. Group 2. Corporate 3. Financial 4. Business overview overview performance segments' overview 5. Funding 6. Subsidiaries 7. Environmental 8. Risk 9. Information performance Social Governance Management Technology profile 2

4. Slide 4: Murugappa Group Overview

   Murugappa Group Overview 3

5. Slide 5: 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 4

6. Slide 6: Murugappa Group Overview

   Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 60,673 2,21,742 1,46,786 Turnover (Cr.) 35,171 19,032 19,124 PAT(Cr.) 1,541 1,739 2,917 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

7. Slide 7: Corporate Overview

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8. Slide 8: 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

9. Slide 9: Cholamandalam Investment & Finance Company Limited

   Cholamandalam Investment & Finance Company Limited 40.7 lakh + customers 54,747 employees Helping customers enter a better life Experienced team to serve more customers 3.5 lakh customers in year 2010 to 40.7 lakh plus customers till date 980 plus employees in year 2010 to 54,000+ employees today Rs

10. Slide 10: Our journey so far

    Our journey so far FY 2025 FY 2023 - 24 FY 2021 - 22 FY 2016-20 2025 2023 • Total AUM crossed 2021 • Total AUM crossed ₹1.7 lakh Cr. FY 2010-15 2016 • LAP platform ₹1 lakh Cr. digitization • Increased branch FY 1979-2010 • New LEAP LOS Digital platform 2024 network to 1438. 2011 2017 • Digital Data

11. Slide 11: Highlights – Q1FY25

    Highlights – Q1FY25 Particulars Q1FY25 Vs Q1FY24 Disbursement Disbursement at Rs.24,332 Cr, a growth of 22%. Business AUM Rs.1,68,832 Cr, a growth of 38%. NIM Improved to 7.6% as compared to 7.3% PBT Rs.1,268 Cr, a growth of 31% PBT – ROTA 3.2% as compared to 3.3% Return on Equity 18.9% as compared

12. Slide 12: Highlights – Q1FY25 (II)

    Highlights – Q1FY25 (II) Particulars Q1FY25 Vs Q1FY24 • Well-diversified product portfolio spread across 1388 branches PAN India • Focused on financing of CV, PV, 2W, Tractor and Construction equipment in both VEHICLE FINANCE new and used segments. Overview • Our focus continues to be on retail cust

13. Slide 13: Highlights – Q1FY25 (III)

    Highlights – Q1FY25 (III) Particulars Q1FY25 Vs Q1FY24 • The product suite includes Supply chain financing, Term loans for capex, Loan against shares, SME Funding on hypothecation of machinery for specific industries. Servicing out of 86 (co- Overview located) locations with business growth both thr

14. Slide 14: Highlights – Q1FY25 (IV)

    Highlights – Q1FY25 (IV) New Business Particulars VF LAP HL Chola Businesses Enablers No of Employees 37266 4609 6038 5382 1452 54747 No of Branches 1388 *778 *677 *580 *6 1438 No of Customers 2324354 53951 106581 1150938 NA 3635824 *771 LAP, 641 HL and 579 new businesses branches are co-located wit

15. Slide 15: Ecosystem Play in the MSME Sector

    Ecosystem Play in the MSME Sector Larger enterprises largely focused by Banks Large SME Focused by via *SME business since the last 2 years Medium (SENP) Focused by via LAP business since the last 18 years Small (SENP & SEP) Focused by via CSEL business | 2 years Mini (SENP) Focused by via SBPL| 2 y

16. Slide 16: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Corporate Mutual Bodies Top Domestic Institutional Holding Funds 0.60% 16.86% • Axis Mutual Fund • SBI Mutual Fund Public • HDFC Mutual Fund 5.17% Promoters • Aditya Birla Sun Life Mutual Fund 50.33% • Canara Robecco Mutual Fund

17. Slide 17: Strong Geographical Presence

    Strong Geographical Presence Ladakh (1) 545 594 Jammu & Kashmir (8) 516 Punjab (28) Himachal Pradesh (17) Chandigarh (1) 1387 1438 Haryana (43) Uttarakhand (20) 1145 1191 Sikkim (2) Arunachal Delhi (7) Pradesh (1) Rajasthan (103) UP (98) Assam (38) FY22 FY23 FY24 Q1FY25 Meghalaya (4) Physical Branch

18. Slide 18: Financial Performance

    Financial Performance Petey GMT SM ) Daan if Fi, ld Wh “sath Hn" | uA ot (Wied ig wir

19. Slide 19: Financial Snapshot — 15 Years

    Financial Snapshot —15 Years Recovery and Stabilsation COVID New Growth FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 CAGR CAGR Financials Snapshot YoY (15 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS INDAS INDAS INDAS (5 years) years) Disburse

20. Slide 20: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) * 88,725 1,074 6,362 8,106 0.03% 1% 1% 1% 1% * 66,532 5% 6% 8% 7% 7% 5% 9% 451 11,281 2% 9% 9% 10% 3,830 6,388 16% 10% 13% 12% 14% 6,865 13,554 14% 14% 15% 16% 9,299 * 35,490 11 1,896 1,926 682 * 24,332 5,536 * 20,015 268 72% 48,348 182 1,778 60% 5

21. Slide 21: 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 1% 1% 1% 14,565 0.01% 1% 13,404 7% 8% 9% 8% 5,576 1% 9% 3% 3% 3% 4,977 * 1,14,796 1% 5% 4% 12,909 6% 8% 8% 11,430 611 22% * 1,06,498 444 9,528 20% 20% 3,860 32,13

22. Slide 22: Disbursement & Portfolio Mix – Q1FY25

    Chola – Disbursement & Portfolio Mix – Q1FY25 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler 3 Wheeler 1% 1% 2 Wheeler SME SBPL SME 2 Wheeler 5% SBPL 8% 4% 4% CSEL 1% 1% 8% CSEL Us ed Vehicles Us ed Vehicles HL 14% 16% 17% 9% Tra ctor Tra ct

23. Slide 23: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 3423 *20,525 *19,557 168 168 2666 *15,027 *14,296 165 164 2147 *11,708 164 19,388 20,356 14,132 14,862 11,543 942 726 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Reserves and Surplus Equity Share Capital * Total Netw

24. Slide 24: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.9% 7.7% 3.1% 7.5% 7.6% 3.0% 3.0% 7.3% 2.8% 2.7% FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Loan Losses & Provisions (%) ROA - PBT (%) 1.5% 3.9% 3.8% 1.3% 3.4% 3.3% 1.2% 3.2% 1.0% 0.9% FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23

25. Slide 25: Shareholders’ Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 45.0 20.6% 20.6% 41.2 20.4% 19.9% 35.5 32.5 26.2 18.9% FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 P/E Ratio P/BV Ratio 32.1 31.6 6.2 5.8 27.5 28.1 5.0 5.0 23.5 4.4 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY2

26. Slide 26: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Particulars Q4FY24 Q1 FY24 Q1 FY25 FY24 Q1-o-Q1 Disbursements 24,784 20,015 24,332 22% 88,725 Closing Assets - Managed 1,53,718 1,22,755 1,68,832 38% 1,53,718 I ncome 5,492 4,134 5,828 41% 19,216 Finance Charges 2,579 2,007 2,796 39% 9,231 Net

27. Slide 27: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) ₹ Cr Particulars Jun23 Mar24 Jun24 ASSETS Financial Assets 1,23,212 1,53,770 1,69,908 Cash and Bank balance 5,544 4,320 10,555 Derivative financial instruments 259 248 112 Receivables 227 399 395 Loans 1,13,232 1,44,424 1,54,315 Investments 3,698 4,137 4,331 Other Finan

28. Slide 28: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Mar24 Jun24 Mar24 Jun24 Particulars INR Cr INR Cr % to GA % to GA Gross Assets 1,46,945 1,57,095 100.0% 100.0% Stage 1 1,40,078 1,49,060 95.33% 94.89% Stage 2 3,222 3,912 2.19% 2.49% Stage 3 3,645 4,123 2.48% 2.62% Provision 2,521 2,780 1.72% 1.77% Stage 1 5

29. Slide 29: Stagewise ECL Summary – Jun24

    Stagewise ECL Summary – Jun24 ₹ Cr Total Total Particulars Asset Provn NNPA Asset Provn NNPA Rs in Cr % Stage 1A (A ) 1,48,744 552 1,48,192 94.68% 0.37% 94.33% Stage 1B (B ) 316 13 303 0.20% 3.99% 0.19% Total Stage 1 (C ) 1,49,060 565 1,48,495 94.89% 0.38% 94.53% Stage 2A (D ) 2,658 215 2,443 1.69%

30. Slide 30: Stage 3 Assets Product-wise

    Stage 3 Assets Product-wise ₹ Cr Closing Gross Stage 3 ECL Provision Net Stage Net Asset Class Asset Stage 3 Asset % Provision Coverage 3 Stage 3% Jun24 1,57,095 4,123 2.62% 1,876 45.50% 2,247 1.43% VF 90,580 2,966 3.27% 1,379 46.51% 1,586 1.75% LAP 31,834 747 2.35% 332 44.42% 415 1.30% HL 14,333 14

31. Slide 31: Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend Chola 50.00% 45.40% 47.32% 46.00% 46.45% 12.00% 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

32. Slide 32: Business Overview

    Business Overview 31

33. Slide 33: Vehicle Finance

    Vehicle Finance

34. Slide 34: Vehicle Finance: Q1FY25 Performance

    Vehicle Finance: Q1FY25 Performance • Disbursements grew by 13% in Q1FY25 to Rs. 12,766 Cr as compared Disbursements 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

35. Slide 35: 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 growth ▪ We will continue our focus in this segment in line of 6% in Q1 FY’25 which is an all-time high sales for with macro economic demand. Q1 of any previous year. The impa

36. Slide 36: 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 had a ▪ We will continue our focus in this segment in line growth of 3% in Q1 FY’25 which is an all-time high with retail demand and customer sentiments. sales for Q1 of any pr

37. Slide 37: 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 growth ▪ Our exposure in this segment is around 7% at a of 5% in Q1 FY’25. This segment is poised to grow in portfolio level and we will strive to maintain quality line with gov

38. Slide 38: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year Chola YoY growth rate 3% Chola YoY growth rate (20%) CAGR 42% (in Units) (in Units) Industry YoY growth 52705 rate (1%) 134959 49165 116583 43065 42471 110108 109939 CAGR @ 5% CAGR @ 10% 25134 54037 Q1 FY22 Q1

39. Slide 39: 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% CAGR 63% (in Units) Chola YoY growth rate 17% 79668 (in Units) 65033 CAGR @ 10% 61074 61722 1187838 998382 1026099 CAGR @ 10% 911096 647848 25053 Q1 FY22 Q1 FY23 Q1 FY24 Q1 FY25

40. Slide 40: 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

41. Slide 41: 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

42. Slide 42: 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 & Diu MP AP Karnataka MP AP Maharashtra 0.05% Maharashtra 0.04% Karnataka 5% 5% 5% Gujarat 5% Kera

43. Slide 43: Vehicle Finance - Disbursement/Portfolio Mix – Q1FY25

    Vehicle Finance - Disbursement/Portfolio Mix – Q1FY25 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise HCV HCV 6% 7% CE 3 Wheeler 3 Wheeler LCV 6% 1% 1% 17% CE LCV 5% 2 Wheeler 2 Wheeler 20% 9% 7% MUV 11% MUV Used Vehicles 10% 27% Used Vehicles 33% CAR

44. Slide 44: 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 Low Yield * 11,301 738 5% 5% 5% 7% 6% 914 745 627 613 653 640 16% 15% 17% 17% 584 2,048 2,134 16% 1,853 1,860 Medium Yield 1,

45. Slide 45: 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 5,201 Low Yield * 71,065 5,670 21% 21% 20% 20% 20% 4,906 5,221 4,721 5,058 17,543 4,878 16,660 15,872 9% 9% 1

46. Slide 46: 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 42 48,348 *71,065 * 66,938 146 39,699 215 *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 FY22 FY23 FY24 Q1 FY24 Q1 FY25

47. Slide 47: 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 46

48. Slide 48: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 8.8% 3.3% 8.4% 3.3% 3.2% 3.1% 7.7% 7.9% 7.2% 2.8% FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Loan Losses & Provisions (%) ROA - PBT (%) 4.1% 1.9% 3.9% 3.4% 1.4% 1.5% 2.9% 2.9% 1.2% 1.2% FY22 FY23 FY24 Q1 FY24 Q

49. Slide 49: Profit and Loss Statement - Vehicle Finance (Managed)

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Particulars Q4FY24 Q1 FY24 Q1 FY25 FY24 Q1-o-Q1 Disbursements 12,962 11,301 12,766 13% 48,348 Closing Assets - Managed 84,498 71,065 88,638 25% 84,498 Income 3,144 2,498 3,255 30% 11,274 Finance Charges 1,455 1,258 1,558 24% 5,436 N

50. Slide 50: Profit and Loss Statement - Vehicle Finance (On Book)

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Particulars Q4FY24 Q1 FY24 Q1 FY25 FY24 Q1-o-Q1 Disbursements 12,962 11,301 12,766 13% 48,348 Closing Assets (On B/S) 84,456 70,918 88,611 25% 84,456 Income 3,142 2,491 3,254 31% 11,256 Finance Charges 1,454 1,254 1,557 24% 5,426 Ne

51. Slide 51: Loan Against Property

    CO eee ets Loan Against Property

52. Slide 52: Loan Against Property – Q1FY25 Performance

    Loan Against Property – Q1FY25 Performance • Disbursements grew by 45% in Q1FY25 to Rs. 3,874 Cr as compared Disbursements 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

53. Slide 53: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL MI&A Research estimates the LAP segment to grow 25- • The focus is on increasing the market share backed by 26% for NBFCs in fiscal 2024. Similarly, range bound growth is consistent disbursement growth and collections a

54. Slide 54: Loan Against Property - Disbursements and Asset Under Management

    Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 32,135 * 29,859 760 823 13,554 * 22,866 * 21,588 1,030 1,114 9,299 * 16,795 1,544 31,376 29,036 5,536 20,474 21,836 3,874 15,250 2,679 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1

55. Slide 55: Loan Against Property – Income and Profit before tax

    Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 973 3,208 759 2,292 1,807 469 1,006 292 224 704 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 54

56. Slide 56: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 5.7% 1.8% 1.8% 5.5% 5.5% 5.4% 4.9% 1.4% 1.4% 1.2% FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Loan Losses & Provisions (%) ROA - PBT (%) 0.7% 4.0% 4.0% 3.9% 3.8% 3.0% 0.1% 0.1% FY22 FY23 -0.2% -0.1% Q1 FY

57. Slide 57: Profit and Loss Statement - Loan Against Property (Managed)

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Particulars Q4FY24 Q1 FY24 Q1 FY25 FY24 Q1-o-Q1 Disbursements 4,273 2,679 3,874 45% 13,554 Closing Assets - Managed 29,859 22,866 32,135 41% 29,859 Income 917 704 1,006 43% 3,208 Finance Charges 513 408 563 38% 1,811 Net Incom

58. Slide 58: Profit and Loss Statement - Loan Against Property (On Book)

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Particulars Q4FY24 Q1 FY24 Q1 FY25 FY24 Q1-o-Q1 Disbursements 4,273 2,679 3,874 45% 13,554 Closing Assets (On B/S) 29,036 21,836 31,376 44% 29,036 Income 890 672 986 47% 3,069 Finance Charges 492 384 545 42% 1,722 Net Income 3

59. Slide 59: Home Loans

    Home Loans 58

60. Slide 60: Home Loans – Q1FY25 Performance

    Home Loans – Q1FY25 Performance • Disbursements grew by 22% in Q1FY25 to Rs. 1,778 Cr as compared Disbursements 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

61. Slide 61: 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

62. Slide 62: Home Loans - Disbursements and Asset Under Management

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *13,404 356 6,362 *10,456 *9,528 341 *8,451 413 433 3,830 *5,590 13,048 527 10,115 9,115 8,018 1,778 5,063 1,896 1,454 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 On Book Assigne

63. Slide 63: 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 62

64. Slide 64: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.8% 8.8% 8.0% 4.1% 7.7% 7.7% 3.9% 3.8% 2.9% 2.2% FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q1 FY24 Q1 FY25 Loan Losses & Provisions (%) ROA - PBT (%) 4.8% 4.7% 0.9% 4.5% 4.5% 3.9% 0.3% 0.3% 0.2% -0.1% FY22 FY23 FY24 Q1 FY25 FY22

65. Slide 65: Profit and Loss Statement - Home Loans (Managed)

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Particulars Q4FY24 Q1 FY24 Q1 FY25 FY24 Q1-o-Q1 Disbursements 1,747 1,454 1,778 22% 6,362 Closing Assets - Managed 13,404 9,528 14,565 53% 13,404 Income 534 344 558 62% 1,756 Finance Charges 229 171 253 48% 805 Net Income 305 173 306 77%

66. Slide 66: Profit and Loss Statement - Home Loans (On Book)

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Particulars Q4FY24 Q1 FY24 Q1 FY25 FY24 Q1-o-Q1 Disbursements 1,747 1,454 1,778 22% 6,362 Closing Assets (On B/S) 13,048 9,115 14,224 56% 13,048 Income 523 331 547 65% 1,702 Finance Charges 220 162 245 51% 770 Net Income 303 169 302 79%

67. Slide 67: New MSME Businesses

    MS NEW MSME BUSINESSES

68. Slide 68: Profit and Loss Statement – New Businesses

    Profit and Loss Statement – New Businesses ₹ Cr CSEL SME SBPL Particulars FY24 Q1FY25 FY24 Q1FY25 FY24 Q1FY25 Disbursements 11,281 3,486 8,106 2,160 1,074 268 Closing Assets - Managed 11,430 12,909 4,977 5,576 1,404 1,618 Income 1,713 613 514 164 227 98 Finance Charges 666 223 320 99 70 28 Net Incom

69. Slide 69: Funding Profile

    ih onda (CCT Corres tana

70. Slide 70: 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% 4% 3% 6% 2% 2% 1% 7% 5% 2% 3% 3% 5% 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% 3% Q1FY24 Q2

71. Slide 71: 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% 2% 1% 3% 0.3% 3% 4% 57% 56% 54% 53% 52% 1% 1% 1% 1% 6% 6% 6% 1% 6% 7% 7% 8% 8% 5% 8% 3% 3% 3% 3% 3% Q1FY24

72. Slide 72: 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,

73. Slide 73: 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

74. Slide 74: Consolidated Financials

    Consolidated Financials 73

75. Slide 75: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Growth % Particulars FY23 FY24 Q1 FY24 Q1FY25 Q1-o-Q1 Income 13,106 19,420 4,171 5,857 40% Expenses 9,491 14,815 3,215 4,582 43% PBT 3,615 4,605 956 1,275 33% PAT 2,665 3,420 710 947 33% Note: Above financials includes Chola Sec, Chola Home Finance, Paytail and Paysw

76. Slide 76: Risk Management

    Risk Management 75

77. Slide 77: Our Enterprise Risk Management strategy comprehensively covers all aspects of risk

    Our Enterprise Risk Management strategy comprehensively covers all aspects of risk 1 Risk vision Risk Pillars 2 3 4 5 6 7 Key Cyber & Regulatory Capital & emerging Credit Fraud Data & Liquidity risks- risk risk security Complianc risk climate, risk e risk social etc. 7 Risk organization 8 Risk gover

78. Slide 78: Best-in-class practices across all key risk areas (I/II)

    We have integrated best-in-class practices across all key risk areas (I/II) Category Key Highlights Risk vision • Risk Appetite Statement implemented as a strategic lever: Strong linkage to functions with well-defined 1 thresholds and robust governance mechanisms Capital & • Well-diversified source

79. Slide 79: Best-in-class practices across all key risk areas (II/II)

    We have integrated best-in-class practices across all key risk areas (II/II) Category Key Highlights • Built/ deployed robust capabilities, processes and toolkits to manage growing cyber risks 5 Cyber risk • Quarterly red-teaming & war gaming assessments; Regular phishing simulations & crisis manage

80. Slide 80: Capital & Liquidity risk | Well managed with judicious buffers

    Capital & Liquidity risk | Well managed with judicious buffers maintained consistently ALM: Stringent Internal thresholds Liquidity: LCR reported is 1.7-2x of RBI mandate on average Chola internal Distribution of reported LCR (FY24) Time bucket RBI​ thresholds thresholds RBI mandated minimum RBI man

81. Slide 81: Capital & Liquidity risk | Sufficient Tier 1 capital

    Capital & Liquidity risk | Sufficient Tier 1 capital (₹Cr) Total RWA as on 30th Jun’24 Per regulatory guidance, Chola held 14.76% of NBFCs to maintain atleast 1,34,415 RWA as Tier I capital 10% of RWA as Tier I as on 30th Jun’24 capital ~Rs 2000 Cr maintained as CCD as ~2000 part of Tier-2 capital1

82. Slide 82: Holistic risk management for credit risk mitigation

    Holistic risk management for credit risk mitigation Robust Business Decision Multi-faceted Proactive portfolio Matrix based on key criteria underwriting process monitoring at a customer level • Choosing right customer mix upfront for Input variables leveraged- • Rigorous non-starter/early default mo

83. Slide 83: Regulatory & compliance risk | Effective governance

    Regulatory & compliance risk | Effective governance augmented by a strong compliance function Governance & Compliance form the core of 20+ professionals every business and functional process with collective experience of 200+ years Strong ‘Compliance- first’ approach tone setting from the Board and

84. Slide 84: Regulatory & compliance risk | Robust compliance mechanisms

    Regulatory & compliance risk | Governance further strengthened by robust compliance mechanisms Regular Independent Audit Annual review and approval of all Committee meetings held key policies by the Board Specific focus on review of compliance of policies and processes Monthly concurrent Internal Di

85. Slide 85: Cyber risk | Regular monitoring & strong internal processes

    Cyber risk | Regular monitoring & strong internal processes to prevent, detect & mitigate cyber risk People Process Tools & Technology •1 Well-equipped, adept 3 Continued effort towards 5• Continuous expansion of team of security strengthening protocols suite of tools to monitor professionals to mit

86. Slide 86: Risk governance & reporting

    Risk governance & reporting | Clearly defined roles & responsibilities for effective corporate governance Organization structure setup to ensure effective governance Well-defined tracking mechanism & review cadence 1 RCSA (Risk control and self-assessment) conducted across • Oversee the entire risk

87. Slide 87: Information Technology

    Information Technology 86

88. Slide 88: Chola's overall technology focus spread across all layers

    Chola's overall technology focus spread across all layers System of Engagements Direct to Customer LOS CRM Partner Integration (GB, Chola One) System of Records Loan Customer Management Collections Accounting Treasury Database Suite System of Intelligence Other Core Areas Copyright © 2021 by Boston

89. Slide 89: Capabilities built for digitization of Loan Origination System

    Organization-wide capabilities built for digitization of Loan Origination System (LOS) Loan Underwriting Sourcing Disbursement journey & Loan Sanction Integration with OEMs Third party validations Document digitization Validated KYC via golden sources Automated bureau checks E-Sign Digitizatio eKYC

90. Slide 90: Digital Collection Management System

    We have a comprehensive digital Collection Management System to manage end-to-end collection process Analytics Engine 1 (EWS) 10 Easy payment through Bitly link Allocation Rule Engine Customers 2 (Automatic allocation) 11 Real time view of MIS/reports 3 E-receipts (view/download) 12 Integrated conta

91. Slide 91: Chola One platform envisioned to be a super-app

    Chola One platform envisioned to be a super-app, a one-stop-shop for all our products, lead generation, VAS, customer service Organic Traffic One-stop shop for financial products One-stop shopPhase for financial 1 products (SEO) Lending Insurance & WM VAS • PL • LI • Credit CSEL Propensity • VF • HI

92. Slide 92: We are building an E2E integrated ecosystem for VF

    We are building an E2E integrated ecosystem for VF Used vehicle Monthly Avg. Unique SEO Score1 Page authority marketplace (out of 100) Users (score out of 100) • Vehicle listing for selling (site traffic) 93 1.1M+ 32 • Dealer info for buying New vehicle discovery "Used truck" Repo Subscribers New li

93. Slide 93: Data and Analytics team across the customer journey

    Our Data and Analytics team works across the entire value chain of customer journey EWS Model UW Scorecards mo A cc torin ou g ni nt nt Credit assessme Roll-forward Model Risk-based pricing l Cross sel Bureau enrichment & S al e s for DPD customers Pre-approved offer Propensity models CIBIL Alerts g

94. Slide 94: Environmental Social Governance

    Environmental Social Governance 93

95. Slide 95: Consecutively awarded for last 5 years

    Consecutively awarded for last 5 years……. FY21 • FTSE Russell - Included in FTSE4 Good Index series FY22 • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2021. • FTSE Russell - Reaffirmed as constituent of FTSE4Good Index Series in June 2022. FY23 • CRISIL ESG rating – ST

96. Slide 96: We Believe In Making A Positive Impact In The Society

    ESG POLICY We Believe In Making A Positive Impact In The Society Environmental Social Governance As an environmentally responsible To enable better opportunity for all, we The company has strong commitment company, we focus on sustainability and ensure financial inclusion of to values and ethical bu

97. Slide 97: ESG Vision & Mission

    $ Chola Enter a better life ESG VISION & MISSION Access to Governance Finance Privacy & Data Security (G Digitization @ Employee © @ Wellness [7a Learning & Development . s Diversity & ey Inclusion o Green Building — Empowering Communities ie murugappa 96

98. Slide 98: ESG Governance Structure

    ESG GOVERNANCE STRUCTURE Board - major policy and sustainability reports related Board to ESG CSR Committee –Chairman, an independent Director CSR and a non-executive Director to support and advise Committee Board on the company’s policies, strategies and programs related to ESG Internal working gro

99. Slide 99: Environment Consciousness

    ENVIRONMENT CONSCIOUSNESS  Policy for Sustainable Sourcing.  E-receipts are issued to customers in place of physical receipts.  Financing Electric Vehicles for a green and clean future – Rs 298 cr disbursed in FY 24 (Rs 91 Cr was disbursed in FY 23).  Adoption of SEMS – Socially & Environmentall

100. Slide 100: Social Responsibility

     SOCIAL RESPONSIBILITY CSR in Chola CIFCL is rooted towards its commitment for the social w.elfare. Rooted in a commitment to national development and inclusion, Chola exemplifies this ethos through its steadfast dedication to Corporate Social Responsibility (CSR) initiatives across India. FY 2023-24

101. Slide 101: Social Responsibility

     SOCIAL RESPONSIBILITY Number of Number of Number of States beneficiaries SDGs covered 611357 08 Number of 21 Districts Number of aspirational 79 (in ten projects districts years) 60 19 100 SDG – Sustainable Development Goals

102. Slide 102: Social Responsibility

     SOCIAL RESPONSIBILITY ▪ Livelihood skills • Ensure healthy lives • Ensure inclusive and • Training of players of for the and promote well- equitable quality blind women’s marginalized being for all at all education and promote football- 10 section ages lifelong learning • Female Golf Players- ▪ No.

103. Slide 103: Social Responsibility

     SOCIAL RESPONSIBILITY 6000.00 CSR Spent in Rs lacs 5686 5000.00 4363.1 4000.00 3643.87 3207.48 3000.00 2888.43 2307.10 2000.00 1755.71 1386.07 1000.00 1130.00 573.94 0.00 FY 2014- FY 2015- FY 2016- FY 2017- FY 2018- FY 2019- FY 2020- FY 2021- FY 2022- FY 2023 15 16 17 18 19 20 21 22 23 24 CSR Spent

104. Slide 104: Social Responsibility Yearwise Thematic Allocation

     SOCIAL RESPONSIBILITY YEARWISE THEMATIC ALLOCATION (₹ Cr) 24 22 23 19 15 12 8 7 5 4 4 3 4 3 3 1 1 2 1 2 2 2 1 0 1 1 Health Education Rural Environment Disaster Relief WASH Others Development Sustainability Project 2020-21 2021-22 2022-23 2023-24 103

105. Slide 105: Social Responsibility

     SOCIAL RESPONSIBILITY  Vehicle Finance: New to credit customers, women borrowers, low-income groups, electric vehicles, transport entrepreneurs in geographies with limited presence of banks & financiers.  Loan Against Property: Small business entrepreneurs for self-occupied residential property. 

106. Slide 106: Governance

     GOVERNANCE Governance Philosophy - “The fundamental principle of economic activity is that no man you transact with will lose; then you shall not.”  Adhere to corporate governance standards beyond the letter of law;  Maintain high degree of transparency and disclosures;  Maintain a clear distinct

107. Slide 107: Contact us

     Contact us Cholamandalam Investment and Finance Company Limited (Chola), Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Our registered Chennai - 600032. office Toll free number: 1800-200-4565 (9 AM to 7 PM) Land Line: 044–4090 7172 http://www.cholamandalam.com Sujatha P-Exec

108. Slide 108: 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

109. Slide 109: Thank You

     THANK YOU Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai - 600032. | Email: customercare@chola.murugappa.com | Website: www.cholamandalam.com Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company — Q1 FY2025 Earnings Presentation on 6ix