Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (December 2017)
49 slides from Cholamandalam Investment And Finance's investor presentation, December 2017
Slide 1: Corporate Presentation – December 2017
Cholamandalam Investment and Finance Company Limited Corporate Presentation – December 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 ₹ 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 ₹ 202bn1 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 ₹ 2,02,278 mn Finance Company and one of the leading financial provider for vehicle finance, (US$ 3,164 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 40% Institutions 20% 20% Public 6% 0% Promoters -20% FII 53% Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 21% Chola Finance Sensex Promoters share holding of 53.07% includes Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 TI Financial Holdings
Slide 9: Market Overview
Market Overview EPS ROE (%) (Rs. Per Share) 19.78 18.04 16.64 16.96 15.80 *22.3 *21.0 *22.3 *19.0 *19.5 49,282 58.00 42,849 41,588 46.01 42.42 36,574 30.09 37.50 31,727 FY15 FY16 FY17 Dec '16 Dec '17 FY15 FY16 FY17 Dec '16 Dec '17 EPS * Price - Earnings Ratio Networth (Rs mn) ROE (%) Book Value Mark
Slide 10: Corporate Overview
Corporate Overview Business Segments Overview Portfolio Breakup – 31-Dec-2017 AUM * (₹ mn) FY15 FY16 FY17 Dec '16 Dec '17 YoY Growth Vehicle Finance Vehicle Finance TRACTOR, 7% CE, 3% OLDER VEHICLES, 14% On Book 149,215 179,144 202,709 202,776 244,251 20% HCV, 18% Assigned 27,171 21,859 33,597 18,83
Slide 11: Company Performance – At a Glance
COMPANY PERFORMANCE – AT A GLANCE FY15 FY16 FY17 YTD Dec '16 YTD Dec '17 YoY Disbursements (₹ mn) Growth Vehicle Finance 93,627 123,830 144,710 100,641 137,204 36% Home Equity 30,434 34,764 30,559 25,117 23,681 -6% MSME 2,490 3,253 6,663 5,092 4,817 -5% Home Loans 892 1,746 3,247 2,251 4,129 83% Agr
Slide 12: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (3) Branch Network 858 703 228 Himachal Pradesh (11) 534 534 203 Punjab (21) 94 231 Harayana (27) Uttarakhand (14) 167 199 164 180 204 Delhi (5) 162 144 102 149 Assam (23) 53 83 103 Rajasthan (69) UP (60) 32 49 36 46 FY15 FY16 FY17 YTD Dec'17 Bihar (32) M
Slide 13: Chola - Financial Summary
Chola - Financial Summary Disbursements Assets Under Management (₹mn) (₹mn) *390,742 *185,913 *341,670 *326,863 *163,803 *171,064 *296,504 63,871 5,208 10,644 *133,783 10,180 *254,525 62,633 44,044 *128,076 30,559 41,643 4,015 34,764 8,025 23,681 35,482 30,434 25,117 100,641 137,204 93,627 123,830 1
Slide 14: Chola - Financial Summary (Cont'd)
Chola - Financial Summary (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 9.6% 3.9% 8.7% 8.6% 8.4% 3.6% 3.5% 7.9% 3.4% 3.4% FY15 FY16 FY17 YTD Dec '16 YTD Dec '17 FY15 FY16 FY17 YTD Dec '16 YTD Dec '17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C) 1
Slide 15: Performance Highlights – Q3FY18 & YTD Dec'17
Performance Highlights – Q3FY18 & YTD Dec’17 Disbursements Profit after Tax ROTA (PBT) Book Value EPS* ROE* Q3-FY18 ₹ 67,611 mn ₹ 2,492 mn 4.60% ₹ 315.3 ₹ 63.24 20.62% 55% 53% 33% 19% 53% 30% Q3-FY17 ₹ 43,734 mn ₹ 1,625 mn 3.45% ₹ 266.1 ₹ 41.26 15.82% Disbursements Profit after Tax ROTA (PBT) Book V
Slide 16: Asset Quality
ASSET QUALITY 5.0% 0.45 4.5% 39.7% 0.4 4.0% 36.8% 34.8% 35.1% 0.35 3.5% 33.1% 31.6% 0.3 3.0% 0.25 2.5% 4.7% 4.7% 4.5% 0.2 2.0% 3.5% 3.7% 3.2% 3.2% 0.15 1.5% 3.1% 2.9% 1.0% 2.0% 2.1% 2.3% 0.1 1.4% 1.5% 1.6% 1.6% 1.4% 0.5% 1.1% 0.05 0.0% 0 2014-15 2015-16 2016-17 Q1 FY18 Q2 FY18 Q3 FY18 (5 months+) (4
Slide 17: Highlights – YTD Dec'17
Highlights – YTD Dec’17 Disbursements Disbursement for YTD Dec’17 stood at Rs. 171,064 mn, a growth of 28% YoY. PAT PAT for YTD Dec’17 stood at Rs. 6,830 mn, a growth of 37% YoY. RoE Return on equity at 19.7% in YTD Dec’17, a growth of 16% YoY. AUM Total assets under management has crossed Rs 390bn
Slide 18: Business Overview
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Slide 19: Vehicle Finance
Enter a better life 19
Slide 20: 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 @6% Chola @88% 96,145 Chola @18% 11,54,973 76,156 7,44,433 7,88,862 7,29,168 53,980 6,34,783 43,677 52,716 Q3 FY-15 Q3 FY-16 Q3 FY-17 Q3 FY-18 Q3 FY-22 (E) Q3 FY-15 Q3 FY
Slide 21: Vehicle Finance - Industry
Vehicle Finance - Industry Trend in Domestic LCV Sales (in Units) Trend in Domestic SCV Sales (in Units) CAGR @12% CAGR @14% 1,46,660 97,522 Chola @64% Chola @48% 93,205 70,917 71,759 76,399 57,741 46,271 44,129 41,038 Q3 FY-15 Q3 FY-16 Q3 FY-17 Q3 FY-18 Q3 FY-22 (E) Q3 FY-15 Q3 FY-16 Q3 FY-17 Q3 FY
Slide 22: 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 23: 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 24: 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 25: Vehicle Finance - Disbursement / Portfolio Mix – YTD Dec'17
Vehicle Finance - Disbursement / Portfolio Mix – YTD Dec’17 Well diversified across geography & product segments Disbursements - State wise Portfolio – State wise MP 5% AP 5% KARNATAKA 5% MP 5% AP 5% MAHARASHTRA KARNATAKA 5% 13% KERALA 4% MAHARASHTRA 13% Pondicherry 0% KERALA 4% Pondicherry 0% TELAN
Slide 26: Vehicle Finance - Financial Summary
Vehicle Finance - Financial Summary Disbursements Assets Under Management (₹ mn) (₹ mn) *280,213 *236,306 *221,613 35,962 *201,003 144,710 137,204 *176,386 33,597 18,837 123,830 21,859 27,171 93,627 100,641 149,215 179,144 202,709 202,776 244,251 FY15 FY16 FY17 YTD Dec '16 YTD Dec '17 FY15 FY16 FY17
Slide 27: Vehicle Finance - Financial Summary (Cont'd)
Vehicle Finance - Financial Summary (Cont’d) Net Income Margin (A) Expense Ratio (B) (Operating Income - Finance Charges) 4.1% 8.9% 3.8% 3.8% 3.7% 8.5% 8.4% 3.6% 8.2% 7.5% FY15 FY16 FY17 YTD Dec '16 YTD Dec '17 FY15 FY16 FY17 YTD Dec '16 YTD Dec '17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (
Slide 28: Home Equity
Home Equity 28
Slide 29: Home Equity - Industry outlook
Home Equity - Industry outlook Net interest Margin (NIMs) have fallen across the industry due to high competition from Banks and HFCs and aggressive rates Yields have fallen 200 bps in the last 18 months due to high competition Home Equity Loan book growth for the industry has slowed down. T
Slide 30: 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 Fee Income adequate to cover origination & credit cost Leverage cross sell opportunities for addit
Slide 31: Home Equity – Q3 Performance
Home Equity – Q3 Performance On YTD Dec’17 basis, there has been drop of 6% on YOY basis. Disbursements However the business has grown by 29% over Q3 FY17. On YTD Dec’17 basis, the business has grown by 2%. Pre-closures Asset under continue to a pain point for the business due to dropping lendin
Slide 32: Home Equity - Financial Summary
Home Equity - Financial Summary Disbursements Assets Under Management (₹mn) (₹ mn) 34,764 30,434 30,559 *95,927 *96,266 *97,979 *88,518 25,117 23,681 *72,799 29,036 25,207 27,909 8,312 19,784 64,487 68,734 66,891 71,059 70,070 FY15 FY16 FY17 YTD Dec 16 YTD Dec 17 FY15 FY16 FY17 YTD Dec 16 YTD Dec 17
Slide 33: 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% 4.4% 4.3% 1.3% 1.3% 1.2% 1.2% 1.2% FY15 FY16 FY17 YTD Dec'16 YTD Dec'17 FY15 FY16 FY17 YTD Dec'16 YTD Dec'17 Losses and Provisions (C) ROTA (PBT) (D) = (A) - (B) - (C)
Slide 34: Funding Profile
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Slide 35: CAR, Credit Rating and ALM Statement
CAR, Credit Rating and ALM Statement ALM Statement as on Dec 2017 ₹ mn Tier I Tier II Time Buckets Outflows Inflows Mismatch Cum Mismatch Capital Adequacy Ratio 1–14 Days 18,352 20,248 1,896 1,896 21.24 15–30/31 Days 5,672 5,732 60 1,956 19.68 19.22 18.64 18.53 Over 1–2 Months 17,298 18,560 1,262 3,
Slide 36: Diversified Borrowings Profile
Diversified Borrowings Profile *2,82,983 ₹ mn *2,42,068 *2,48,955 *2,25,762 78,800 *1,94,752 77,072 82,373 35,910 1,11,200 15,306 1,01,965 27,035 39,120 6,631 6,533 4,975 27,560 1,21,380 22,038 12,449 1,02,992 92,092 39,687 48,466 26,087 26,087 28,337 28,837 31,587 Mar-15 Mar-16 Mar-17 Dec-16 Dec-17
Slide 37: Business Enablers
--- TECHNOLOGY LEVERAGE
Slide 38: Technology Updates
Technology Updates Technology Infrastructure Systems of Record Delivering resilient & scalable environment Stable foundation for core products & services Storage enhancements to improve End-of-Month batch Hyperion branch level planning & Profitability dashboard with performance drill-down capabi
Slide 39: 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 40: Financial Performance
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Slide 41: Profit and Loss Statement – Quarterly
Profit and Loss Statement – Quarterly ₹ mn Growth % Growth % Particulars Q3FY18 Q2FY18 Q3FY17 Q-o-Q Y-o-Y Disbursements 67,611 54,923 43,734 23% 55% Closing Assets (Managed) 400,549 374,502 333,807 7% 20% Closing Assets (Balance Sheet) 336,678 317,506 289,763 6% 16% Operating Income 13,833 12,960 11
Slide 42: Profit and Loss Statement – Year to Date
Profit and Loss Statement – Year to Date ₹ mn Particulars FY15 FY16 FY17 YTD Dec'16 YTD Dec'17 Disbursements 128,076 163,803 185,913 133,783 171,064 Closing Assets (Managed) 261,906 303,624 351,097 333,807 400,549 Closing Assets (Balance Sheet) 226,423 261,980 288,464 289,763 336,678 Operating Incom
Slide 43: Balance Sheet
Balance Sheet ₹mn Particulars Mar-15 Mar-16 Mar-17 Dec-16 Dec-17 Equity and Liabilities Shareholders’ Funds 31,733 36,574 42,849 41,588 49,282 Current Liabilities 78,892 127,214 105,206 109,344 141,563 Non-current Liabilities 128,106 115,095 158,877 157,447 164,822 Total 238,732 278,883 306,932 308,
Slide 44: Subsidiaries
Subsidiaries & Chola 2G Enter a better life 44 Murugappa
Slide 45: Subsidiaries
Subsidiaries ₹ mn ₹ mn Cholamandalam Distribution Services Ltd Cholamandalam Securities Ltd 131 126 134 153 144 141 128 116 93 74 57 61 32 47 16 22 17 38 29 17 FY15 FY16 FY17 YTD Dec'16 YTD Dec'17 FY15 FY16 FY17 YTD Dec'16 YTD Dec'17 Income PAT Income PAT Wealth management services for mass afflue
Slide 46: 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 47: 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 48: 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 49: Thank You
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