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

Cholamandalam Investment And Finance — Q2 FY2025 Earnings Presentation

111 slides from Cholamandalam Investment And Finance's earnings presentation, Oct 25, 2024

1. Slide 1: Cover letter to stock exchanges

   October 25, 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 Mparg, Dalal Street, Fort, Lower Parel, Mumbai 400 001 Mumbai 400 013 Dear Sir, Sub.: Investor Presentation for the quar

2. Slide 2: Corporate Presentation - September 2024

   EMPOWERING ASPIRATIONS ENABLING AMBITIONS Cholamandalam Investment and Finance Company Limited CORPORATE PRESENTATION - September 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 $56.7 Turnover cap (as on 30th Years Existence B B (FY24) Sep 2024) Listed 3 Sectors 29+ Businesses 9 Companies 50 Geographical 113 Manufacturing 83,000+ Work force Countries Presence Locations Locations 4 All figures are as o

6. Slide 6: Murugappa Group Overview

   Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 64,524 2,28,632 1,73,586 Turnover (Cr.) 51,471 19,533 26,196 PAT(Cr.) 3,260 2,200 3,923 Market Cap(Cr.) 49,303 15,221 28,485 84,135 1,16,012 1,35,216 NA 38,370 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 42.9 lakh + customers 61,291 employees Helping customers enter a better life Experienced team to serve more customers 3.5 lakh customers in year 2010 to 42.9 lakh plus customers till date 980 plus employees in year 2010 to 61,000+ 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 ₹1.77 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 1508. 2011 2017 • Digital Data

11. Slide 11: Highlights – Q2FY25 & H1FY25 (I)

    Highlights – Q2FY25 & H1FY25 (I) Particulars Q2FY25 Vs Q2FY24 H1FY25 Vs H1FY24 Disbursement at Rs.24,314 Cr, a growth of Disbursement at Rs.48,646 Cr, a growth of Disbursement 13%. 17%. Business AUM Rs.1,64,642 Cr, a growth of 33%. NIM Improved to 7.5% as compared to 7.4% Improved to 7.6% as compare

12. Slide 12: Highlights – Q2FY25 & H1FY25 (II)

    Highlights – Q2FY25 & H1FY25 (II) Particulars Q2FY25 Vs Q2FY24 H1FY25 Vs H1FY24 • Well-diversified product portfolio spread across 1461 branches PAN India VEHICLE FINANCE • Focused on financing of CV, PV, 2W, Tractor and Construction equipment in both new and Overview used segments. • Our focus cont

13. Slide 13: Highlights – Q2FY25 & H1FY25 (III)

    Highlights – Q2FY25 & H1FY25 (III) Particulars Q2FY25 Vs Q2FY24 H1FY25 Vs H1FY24 • 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 88 (co- Overview located) locations wit

14. Slide 14: Highlights – Q2FY25 & H1FY25 (IV)

    Highlights – Q2FY25 & H1FY25 (IV) New Business Particulars VF LAP HL Chola Businesses Enablers No of Employees 41299 5071 7039 6316 1566 61291 No of Branches 1461 *779 *697 *688 *6 1508 No of Customers 2477945 61342 123593 1629539 NA 4292419 *772 LAP, 664 HL and 687 new businesses branches are co-lo

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 2.30% 14.87% • Axis Mutual Fund • SBI Mutual Fund Public • Canara Robecco Mutual Fund 5.00% • HDFC Mutual Fund Promoters 50.24% • Aditya Birla Sun Life Mutual Fund

17. Slide 17: Strong Geographical Presence

    Strong Geographical Presence Ladakh (1) 594 680 545 Jammu & Kashmir (10) 516 Punjab (29) Himachal Pradesh (17) Chandigarh (1) 1438 1508 Uttarakhand (22) 1191 1387 Haryana (47) Sikkim (2) Arunachal Delhi (7) Pradesh (1) Rajasthan (111) UP (104) Assam (38) FY23 FY24 Q1FY25 Q2FY25 Meghalaya (4) Physica

18. Slide 18: Financial Performance

    Financial Performance Peeseay mai (i yi | Ta ii, F ff Thabo. oe \ ne me 4801.01

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 (5 (15 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS INDAS INDAS INDAS years) years) Disburse

20. Slide 20: Disbursements

    Disbursements Disbursements (₹Cr) Disbursements (%) 48,646 580 1% 1% 1% 1% 3,601 7% 1% 1% * 41,557 7% 7% 7% 7% 7% 428 4,119 9% 8% 10% 8% 10% 9% 3,029 7,075 12% 14% 13% 15% 13% 15% 3,990 5,207 14% 8,170 16% 14% 17% * 24,332 * 24,314 15% 18% * 21,542 312 5,872 268 1,823 * 20,015 1,778 246 182 2,160 1,

21. Slide 21: Assets Under Management

    Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,64,642 * 1,55,442 1,863 1% 1% 1% 1% 1,618 15,892 8% 9% 9% 10% 14,565 * 1,24,246 5,877 3% 4% 3% 5,576 4% 14,175 6% 8% 7% * 1,14,796 836 9% 12,909 611 10,801 20% 9,528 4,006 34,824 21% 20% 20% 3

22. Slide 22: Chola – Disbursement & Portfolio Mix – H1FY25

    Chola – Disbursement & Portfolio Mix – H1FY25 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% 1% 4% 4% CSEL 1% 9% CSEL Us ed Vehicles Us ed Vehicles 14% HL 16% 18% 10% Tra ctor Tra c

23. Slide 23: Profitability and Net worth

    Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 1,905 *21,365 *20,525 168 168 1,489 *15,773 *15,027 165 165 942 963 20,357 21,196 726 762 14,862 15,609 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 Reserves and Surplus Equity Share Capital * Total

24. Slide 24: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 7.6% 7.4% 7.5% 7.6% 3.0% 3.0% 7.3% 7.4% 3.0% 3.0% 2.8% 2.7% Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Loan Losses & Provisions (%) ROA - PBT (%) 3.4% 3.3% 1.5% 1.5% 3.3% 1.4% 3.2% 3.2% 3.1% 1.

25. Slide 25: Shareholders’ Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 19.9% 45.0 45.5 45.2 19.8% 19.7% 36.9 36.2 35.5 18.9% 18.6% 18.2% Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 P/E Ratio P/BV Ratio 35.4 35.6 6.3 6.3 6.3 6.3 33.0 33.6 6.2 32.1

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

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q2-o-Q2 H1-o-H1 Disbursements 20,015 24,332 21,542 24,314 13% 41,557 48,646 17% Asset Under Management 1,22,755 1,68,832 1,33,775 1,77,426 33% 1,33,775 1,77,426 33% Income 4,1

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

    Balance Sheet (As per IND AS) ₹ Cr Particulars Sep23 Mar24 Sep24 ASSETS Financial Assets 1,35,126 1,53,770 1,78,626 Cash and Bank balance 7,852 4,320 8,571 Derivative financial instruments 288 248 92 Receivables 252 399 350 Loans 1,22,889 1,44,424 1,63,596 Investments 3,610 4,137 5,815 Other Financi

28. Slide 28: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Jun24 Sep-24 Jun24 Sep-24 Particulars INR Cr INR Cr % to GA % to GA Gross Assets 1,57,095 1,66,654 100.0% 100.0% Stage 1 1,49,060 1,57,446 94.89% 94.47% Stage 2 3,912 4,500 2.49% 2.70% Stage 3 4,123 4,708 2.62% 2.83% Provision 2,780 3,058 1.77% 1.83% Stage 1

29. Slide 29: Stagewise ECL Summary – Sep 24

    Stagewise ECL Summary – Sep 24 ₹ Cr Total Total Particulars Asset Provn NNPA Asset Provn NNPA Rs in Cr % Stage 1A (A ) 1,57,146 570 1,56,576 94.29% 0.36% 93.95% Stage 1B (B ) 300 12 288 0.18% 3.91% 0.17% Total Stage 1 (C ) 1,57,446 582 1,56,864 94.47% 0.37% 94.13% Stage 2A (D ) 3,206 256 2,950 1.92%

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% Sep24 1,66,654 4,708 2.83% 2,095 44.49% 2,613 1.57% VF 94,174 3,388 3.60% 1,550 45.75% 1,838 1.95% LAP 34,583 780 2.25% 331 42.50% 448 1.30% HL 15,685 18

31. Slide 31: Chola – Stage 3 Assets Trend

    Chola –Stage 3 Assets Trend As per revised RBI norms GNPA% & NNPA% as of Sep24 is at 3.78% and 2.48%, respectively. 30

32. Slide 32: Business Overview

    Business Overview 31

33. Slide 33: Vehicle Finance

    Vehicle Finance

34. Slide 34: Vehicle Finance: Q2FY25 & H1FY25 Performance

    Vehicle Finance: Q2FY25 & H1FY25 Performance • Disbursements grew by 5% in Q2FY25 to Rs. 12,336 Cr as compared Disbursements to Q2FY24 and by 9% in H1FY25 to Rs.25,102 as compared to H1FY24. Assets under • AUM has grown by 22% YoY. management Loss and • Loan losses at 1.8% in Q2FY25 from 1.7% in Q2F

35. Slide 35: Sector outlook – Vehicle Finance business (1/3)

    Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position • The Heavy commercial vehicle segment had a de- ▪ We will keep a close watch on this segment in line growth of 15% in Q2 FY25 & 6% in H1 FY25. The with industry movement and our exposure is at a growth in this segment w

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 ▪ Our focus in this segment will be in line with de-growth of 2% in Q2 FY25 & flat growth in H1 customer demand and retail volumes in rural FY25. The segment has been wit

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 witnessed flat ▪ Our exposure in this segment is around 6% at a growth in Q2 FY25 & 2% growth in H1 FY25. Volumes portfolio level and we will continue to build a in this segment is di

38. Slide 38: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year Chola 4 year Chola YoY growth ra te (6)% Chola YoY growth rate (32%) CAGR 8% CAGR (13%) (in Units) (in Units) 51512 47299 47165 131618 44065 113953 121868 40743 113697 CAGR @ 5% CAGR @ 5% 77852 Q2 FY22 Q2 FY23

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 4% Chola 4 year CAGR 29% Chola YoY growth rate 6% (in Units) CAGR 21% (in Units) 76628 79696 1222908 1027922 1076397 1056394 64913 65056 CAGR @ 5% CAGR @ 7% 743410 42366 Q2 FY22 Q2

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 – Q2FY25

    Vehicle Finance - Disbursement/Portfolio Mix – Q2FY25 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadar and Nagar Dadra and Nagar Haveli Haveli & Daman & Diu & Daman and Diu MP AP MP AP Karnataka 0.04% Karnataka 0.05% Maharashtra Maharashtra 5% 5% 5% Kerala Ke

43. Slide 43: Vehicle Finance - Disbursement/Portfolio Mix – Q2FY25

    Vehicle Finance - Disbursement/Portfolio Mix – Q2FY25 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise HCV HCV 6% 7% 3 Wheeler LCV 3 Wheeler 1% CE 15% CE 1% LCV 5% 20% 2 Wheeler 5% 2 Wheeler 7% 9% MUV 11% MUV Used Vehicles 11% 28% Used Vehicles CAR 35%

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 * 12,336 * 11,731 816 674 637 5% 6% 6% 5% 5% 738 Low Yield 914 745 5% 5% 6% 6% 627 613 683 7% 640 1,853 2,048 2,134 1,896 16% 15% 17% 15% 16% 1,860 Medium Yi

45. Slide 45: Vehicle Finance - Portfolio Mix – Quarter-wise

    Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 92,012 * 88,638 * 84,498 7% 7% 7% 6% 5% 5,842 * 79,640 5,718 7% 7% 7% 7% 7% 5,548 6,083 * 75,396 5,925 5,201 5,670 Low Yield 4,906 5,221 21% 20% 20% 20% 20% 18,180 5,058 17,543 16,660 15,872 15

46. Slide 46: Vehicle Finance - Disbursements and Asset Under Management

    Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *92,012 *88,638 18 25,102 27 23,032 *75,396 *71,065 97 146 88,611 91,994 12,766 12,336 11,301 11,731 75,299 70,918 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 F

47. Slide 47: Vehicle Finance - Income and Profit before tax

    Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,251 6,688 1,000 5,187 620 631 3,433 3,255 501 499 2,690 2,498 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 46

48. Slide 48: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 7.9% 7.8% 7.9% 3.1% 3.2% 3.2% 7.6% 3.1% 7.4% 3.0% 7.2% 2.8% Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Loan Losses & Provisions (%) ROA - PBT (%) 1.9% 2.9% 1.8% 1.9% 1.7% 2.9%

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

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q2-o-Q2 H1-o-H1 Disbursements 11,301 12,766 11,731 12,336 5% 23,032 25,102 9% Asset Under Management 71,065 88,638 75,396 92,012 22% 75,396 92,012 22% Income 2,498

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

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q2-o-Q2 H1-o-H1 Disbursements 11,301 12,766 11,731 12,336 5% 23,032 25,102 9% Closing Assets (On B/S) 70,918 88,611 75,299 91,994 22% 75,299 91,994 22% Income 2,49

51. Slide 51: Loan Against Property

    CO OED e—™ Loan Against Property

52. Slide 52: Loan Against Property – Q2FY25 & H1FY25 Performance

    Loan Against Property – Q2FY25 & H1FY25 Performance • Disbursements grew by 35% in Q2FY25 to Rs. 4,295 Cr as compared Disbursements to Q2FY24 and by 39% in H1FY25 to Rs.8,170 as compared to H1FY24. Asset under • AUM has grown by 41% YoY. management • Loan losses at 0.1% in Q2FY25 and H1FY25 from -0.

53. Slide 53: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • Care rating expects NBFC overall credit to grow at 17% for • We continue to focus on retail customers especially in FY25 due to funding constraints. While LAP segment is poised smaller towns and rural areas. The key focus is t

54. Slide 54: Loan Against Property - Disbursements and AUM

    Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 34,824 8,170 702 * 32,135 759 * 24,721 5,872 * 22,866 950 1,030 4,295 34,121 3,874 31,376 3,192 23,771 2,679 21,836 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2

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) 587 2,097 458 1,460 1,091 292 295 1,006 224 234 757 704 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 54

56. Slide 56: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 2.0% 1.9% 5.7% 1.8% 1.8% 5.6% 1.6% 5.6% 1.4% 5.6% 5.5% 5.4% Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Loan Losses & Provisions (%) ROA - PBT (%) 0.1% 0.1% 4.0% 4.0% 3.9

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

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q2-o-Q2 H1-o-H1 Disbursements 2,679 3,874 3,192 4,295 35% 5,872 8,170 39% Asset Under Management 22,866 32,135 24,721 34,824 41% 24,721 34,824 41% Income 704

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

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY24 Q1 FY25 Q2FY24 Q2FY25 H1 FY24 H1 FY25 Q2-o-Q2 H1-o-H1 Disbursements 2,679 3,874 3,192 4,295 35% 5,872 8,170 39% Closing Assets (On B/S) 21,836 31,376 23,771 34,121 44% 23,771 34,121 44% Income 672

59. Slide 59: Home Loans

    Home Loans 58

60. Slide 60: Home Loans – Q2FY25 & H1FY25 Performance

    Home Loans – Q1FY25 & H1FY25 Performance • Disbursements grew by 16% in Q2FY25 to Rs. 1,823 Cr as compared Disbursements to Q2FY24 and by 19% in H1FY25 to Rs.3,601 Cr as compared to H1FY25. Asset under • AUM have grown by 47% YoY. management • Loan losses maintained at 0.4% in Q2FY25 as compared to

61. Slide 61: Home Loans - Industry outlook

    Home Loans - Industry outlook Sector Outlook Chola’s Position • The underpenetrated market and the government’s • Chola continues to leverage it’s strength in thrust on “Housing for all” are likely to support penetrating to smallest villages and towns. Chola will growth going forward. On-book portfo

62. Slide 62: Home Loans - Disbursements and AUM

    Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *15,892 3,601 *14,565 326 341 3,029 *10,801 *9,528 392 413 1,823 15,566 1,778 14,224 1,575 10,409 9,115 1,454 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 On Boo

63. Slide 63: Home Loans - Income and Profit before tax

    Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,175 334 742 617 183 558 171 163 398 344 96 87 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 62

64. Slide 64: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.8% 4.0% 8.7% 8.7% 4.0% 3.9% 3.9% 8.2% 7.9% 3.8% 7.7% 3.8% Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Loan Losses & Provisions (%) ROA - PBT (%) 0.4% 4.7% 4.5% 4.6% 0.3% 0.3% 3.9%

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

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q2-o-Q2 H1-o-H1 Disbursements 1,454 1,778 1,575 1,823 16% 3,029 3,601 19% Asset Under Management 9,528 14,565 10,801 15,892 47% 10,801 15,892 47% Income 344 558 398 617

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

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Q2-o-Q2 H1-o-H1 Disbursements 1,454 1,778 1,575 1,823 16% 3,029 3,601 19% Closing Assets (On B/S) 9,115 14,224 10,409 15,566 50% 10,409 15,566 50% Income 331 547 383 60

67. Slide 67: New MSME Businesses

    MS NEW MSME BUSINESSES

68. Slide 68: Profit and Loss Statement – CSEL

    Profit and Loss Statement – CSEL ₹ Cr Growth % Growth % Particulars Q1FY24 Q1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2-o-Q2 H1-o-H1 Disbursements 2,355 3,486 2,853 3,588 26% 5,207 7,075 36% Asset Under 6,866 12,909 8,486 14,175 67% 8,486 14,175 67% Management Income 343 613 394 690 75% 737 1,303 77% Finan

69. Slide 69: Profit and Loss Statement – SME

    Profit and Loss Statement – SME ₹ Cr Growth % Growth % Particulars Q1FY24 Q1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2-o-Q2 H1-o-H1 Disbursements 2,045 2,160 1,945 1,959 1% 3,990 4,119 3% Asset Under 3,860 5,576 4,006 5,877 47% 4,006 5,877 47% Management Income 110 164 120 180 50% 230 344 50% Finance Charg

70. Slide 70: Profit and Loss Statement – SBPL

    Profit and Loss Statement – SBPL ₹ Cr Growth % Growth % Particulars Q1FY24 Q1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2-o-Q2 H1-o-H1 Disbursements 182 268 246 312 27% 428 580 36% Asset Under 611 1,618 836 1,863 123% 836 1,863 123% Management Income 33 98 46 115 152% 79 213 171% Finance Charges 11 28 15 33

71. Slide 71: Funding Profile

    Funding Profile 70

72. Slide 72: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by instrument type (₹Cr) * 1,19,470 * 1,23,103 * 1,34,474 * 1,49,902 * 1,57,794 2% 3% 4% 3% 3% 2% 2% 2% 1% 7% 5% 2% 5% 3% 3% 3% 3% 3% 3% 16% 18% 18% 17% 17% 2% 2% 4% 6% 5% 3% 5% 7% 6% 5% 12% 11% 11% 11% 11% 49% 48% 46% 45% 46% 4% 4% 4% 4% 5% Q2FY24

73. Slide 73: Diversified Borrowings Profile (I/II)

    Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 1,19,470 * 1,23,103 * 1,34,474 * 1,49,902 * 1,57,794 5% 5% 7% 6% 5% 16% 17% 17% 18% 18% 3% 0.4%2% 1% 3% 0.3% 3%3% 2% 0.3% 2% 1% 3% 6% 4% 56% 54% 53% 52% 53% 1% 1% 1% 1% 6% 6% 1% 7% 7% 6% 8% 8% 5% 8% 6% 3% 3% 3% 3% 3% Q2FY24

74. Slide 74: ALM Statement as of 30th Sep 2024 (As per IND AS)

    ALM Statement as of 30th Sep 2024 (As per IND AS) (₹Cr) ALM snapshot as on 30th Sep 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 3,703.32 1,220.19 2,261.80 199.92 877.53 3,110.86 949.22 1,541.10 13,863.92 Advances 6,903.52 4,313.03

75. Slide 75: CAR and Credit Rating

    CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 19.62 18.57 18.03 19.50 17.13 3.13 3.47 4.46 2.35 3.27 16.49 14.78 15.10 14.76 15.04 FY22 FY23 FY24 Q1FY25 Q2FY25 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Tier 2 includes 1.40% % of CCD which is

76. Slide 76: Consolidated Financials

    Consolidated Financials 75

77. Slide 77: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Growth % Growth % Particulars Q1 FY24 Q1FY25 Q2 FY24 Q2FY25 H1 FY24 H1 FY25 Q2-o-Q2 H1-o-H1 Income 4,171 5,857 4,695 6,322 35% 8,866 12,179 37% Expenses 3,215 4,582 3,630 5,018 38% 6,845 9,600 40% PBT 956 1,275 1,065 1,304 22% 2,021 2,579 28% PAT 710 947 773 968 25%

78. Slide 78: Risk Management

    Risk Management 77

79. Slide 79: Our Enterprise Risk Management strategy 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

80. Slide 80: Best-in-class practices across 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

81. Slide 81: Best-in-class practices across 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

82. Slide 82: 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 2.02-2.3x of RBI mandate on average Distribution of reported LCR (FY25) Chola internal Time bucket RBI​ thresholds thresholds RBI mandated minimum RBI

83. Slide 83: Capital & Liquidity risk | Sufficient Tier 1 capital

    Capital & Liquidity risk | Sufficient Tier 1 capital (₹Cr) Total RWA as on 30th Sep’24 Per regulatory guidance, Chola held 15.04% of NBFCs to maintain at least 1,42,661 RWA as Tier I capital 10% of RWA as Tier I as on 30th Sep’24 capital ~Rs 2000 Cr maintained as CCD as ~2000 part of Tier-2 capital

84. Slide 84: 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

85. Slide 85: 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

86. Slide 86: 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

87. Slide 87: 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

88. Slide 88: 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

89. Slide 89: Information Technology

    Information Technology 88

90. Slide 90: Chola's overall technology focus spread across all layers

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

91. Slide 91: Digitization capabilities for Loan Origination System (LOS)

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

92. Slide 92: 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

93. Slide 93: 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

94. Slide 94: 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 1.4M+ 33 • Dealer info for buying New vehicle discovery "Used truck" Repo Subscribers New li

95. Slide 95: Data and Analytics 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 es for DPD customers Pre-approved offer Propensity models CIBIL Alerts ge

96. Slide 96: Environmental Social Governance

    Environmental Social Governance 95

97. Slide 97: 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

98. Slide 98: 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: To enable better opportunities for all, we Governance stands for transparency, As an environmentally responsible company, provide financial inclusion, local regulatory compliance and maintaining we f

99. Slide 99: ESG Vision & Mission

    $ Chola Enter a better life ESG VISION & MISSION Access to Governance Finance Privacy & Data Security (G Digitization @ Employee © @ Wellness pF Learning & Development ee a® Diversity & Inclusion Empowering Communities Green Building ie murugappa 98

100. Slide 100: ESG Governance Structure

     ESG Governance Structure Board – The final authority for all the major policy and sustainability reports related to ESG CSR Committee – This Committee comprises of Board Chairman, an independent Director and a non- executive Director to support and advise Board on the company’s policies, strategies

101. Slide 101: Chola ESG Rating and Ranking

     Chola ESG Rating and Ranking Member of FTSE4Good Index Score of 3.1 Refinitiv Rating Sustainalytics (Score/rating (0 to 5) higher score are better higher score indicates lower risks lower rank indicates lower risk 3.2 56 25.2 3.1 54 24.9 3.1 54 25 24.8 24.7 3 52 24.6 50 2.9 24.4 2.8 48 47 24.2 24.1

102. Slide 102: Environment Consciousness

     ENVIRONMENT CONSCIOUSNESS Policy for Sustainable Sourcing. Reduced consumption of paper, sustainable sourcing of A4 sheets in Chennai HO/CPU and other locations.  E-receipts are issued to customers in place of physical receipts.  We procure electronics for the office based on the star rating. Our

103. Slide 103: 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

104. Slide 104: Social Responsibility

     SOCIAL SOCIALRESPONSIBILITY RESPONSIBILITY 34 CHDs (Congenital Heart 48 Household Surgeries) connected via Solar Power 603 Players 5 Female National receiving training Players. Districts SDG ALIGNMENT SDG ALIGNMENT 79 (in ten 348234 Livelihood 0.26% Livelihood 0.06% years) 23831 - access health care

105. Slide 105: 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.

106. Slide 106: 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

107. Slide 107: 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 2023-24 106

108. Slide 108: 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. 

109. Slide 109: 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

110. Slide 110: 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

111. Slide 111: 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

Cholamandalam Investment and Finance Company — Q2 FY2025 Earnings Presentation on 6ix