Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Investor Presentation (March 2021)
77 slides from Cholamandalam Financial's investor presentation, Mar 31, 2021
Slide 1: Corporate Presentation – FY21
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED (CFHL) CORPORATE PRESENTATION – FY21 1
Slide 2: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 120 Years of $5.06 $16.37 Turnover cap (as on 31st Years Existence B B (FY20) Mar 2021 Listed 3 Sectors 28 Businesses 9 Companies 19 Geographical 90+ Manufacturing 51,000+ Work force Countries Presence Locations Locations 2
Slide 3: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 29,958 23,181 57,080 Turnover (Cr.) 17,058 7,704 13,249 PAT(Cr.) 1,022 572 1,291 Market Cap(Cr.) 22,712 5,642 9,653 22,975 45,824 NA 11,256 Turnover (Cr.) 13,091 3,967 2,569 4,520 8,713 4,398 91 PAT(C
Slide 4: 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." 4
Slide 5: Cholamandalam Financial Holdings Limited (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 45.47% 60.00% 49.50% Cholamandalam Cholamandalam MS Investment and Cholamandalam MS General Insurance Risk Services Limited Finance Company Company Limited Limited (CIFCL) (CMSRSL) (CMSGICL) • Subsidiary (as per Ind AS) • Join
Slide 6: Shareholding pattern & Share price movement
Shareholding pattern & Share price movement Shareholding Pattern as of March 31, 2021 Share Price movement 40% 11% 35% 30% 49% 27% 25% 20% 13% 15% Promoters Public Insitutions FII 10% Institutional Holders (More than 1%) 5% 0% Top Domestic Institutional Holdings Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 *
Slide 7: Performance Highlights - Consolidated
Performance Highlights - Consolidated Performance Highlights - Consolidated Rs.in Cr. Revenue Profit after tax Networth EPS (Rs.) FY21 13905 1764 11359 43.93 6% 51% 17% 50% FY20 13136 1165 9702 29.35 7
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Profit after tax FY21 FY20 87%, CIFCL, 1,538 92%, CIFCL, 1,076 1,900 1,200 1,000 1,400 800 900 15%, CMSGICL, 600 268 9%, CMSGICL, 400 102 400 200 2 0%, CMSRSL, 1 - -1%, CFHL, -15 -100 -200 -2%, CFHL, -42 Rs.in Cr. Rs.in Cr. CIFCL CMSGICL CFHL CMSRSL CFHL Consol
Slide 9: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone Particulars (Rs. in Cr) FY21 FY20 CIFCL FY21 FY20 Income 58 91 Disbursements (Rs. in Cr) 26,043 29,091 Expenses 24 4 AUM (Rs. in Cr) 76,529 66,943 Profit Before Tax 34 87 No.of Branches 1,137 1,091 Tax Expense 12 4 Profit After Tax 22 83 CMSGICL FY21
Slide 10: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars March 31, 2021 March 31, 2020 Owned Funds (A) 1,140.74 1,117.07 Adjusted Networth (B) 7,983.39 6,168.66 Risk Weighed Assets ( C) 1,290.11 1,289.14 Outside Liabilities (D) 162.19 203.81 Net assets (E) 1,279.35 1,278.41 Investment in equity shar
Slide 11: Cholamandalam Investment and Finance Company Limited (CIFCL)
Cholamandalam Investment and Finance Company Limited (CIFCL) 11
Slide 12: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 30,451 * 29,091 1,157 2% 2% 4% 5% 6% 1,505 * 26,043 * 25,114 4,310 20% 16% 14% 14% 4,199 16% 606 1,542 3,900 4,252 * 18,591 325 3,796 24,983 78% 82% 82% 80% 78% 23,387 20,607 20,249 14,471 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 VF LAP
Slide 13: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 69,996 4,345 2% 2% 4% 5% 6% * 60,549 * 54,279 3,125 15,236 29% 24% 22% 22% 22% 1,912 13,218 * 42,924 11,762 * 34,167 978 10,473 521 10,015 50,415 73% 75% 73% 69% 72% 44,206 40,606 31,473 23,631
Slide 14: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) *9,561 ** 1,935 164 *8,172 * 420 164 ** 1,387 1515 *6,176 *335 44% 156 *5,098 1186 156 *4,285 1052 9,397 918 157 8,008 719 6,019 4,942 4,128 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Reserves and Surplus Equity Share Capital *
Slide 15: Vehicle Finance
Vehicle Finance Primary Colours 15
Slide 16: Vehicle Finance: FY21 Performance
Vehicle Finance: FY21 Performance Disbursements • Disbursements has declined by 13% in FY21 as compared to FY20. Assets under management • Assets have grown by 14% as compared to FY20. Loss and • Loan losses is at 1.4% towards model provisions and additional 0.9% provisions has been created towards
Slide 17: Sector outlook – Vehicle Finance business (1/1)
Sector outlook – Vehicle Finance business (1/1) Sector Outlook Chola’s Position • The Tractor industry witnessed a growth of 27% Y-o-Y • More than 80% of our branches are present in the due to healthy cash flows in the back of normal rural areas, towns and semi urban areas which monsoon in FY’2021.
Slide 18: Sector outlook – Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position • The Passenger vehicle (Car & MUV) segment was poised • Our focus is predominantly on retail customers mainly in for an impressive growth of 22% to 25% in FY’2022, after smaller towns and rural market. Our exposure to t
Slide 19: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola @ -49% (in Units) (in Units) 2,73,844 CAGR @ 5% Chola @ -24% 2,46,255 CAGR @ 5% (25%) 2,00,406 1,92,947 5,65,408 4,61,213 (18%) 4,57,866 1,43,869 3,58,750 2,94,177 YTD Mar'18 YTD Mar'19 YTD Mar'20 YTD Mar'21 YTD Mar'
Slide 20: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) 2,95,394 CAGR @ 10% Chola @ -58% Chola @-19% 2,65,425 2,66,146 CAGR @ 7% 38,90,902 33,54,249 (2%) 31,14,258 1,65,256 27,74,159 27,13,470 1,28,500 YTD Mar'18 YTD Mar'19 YTD Mar'20 YTD Mar'21 YTD
Slide 21: 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
Slide 22: 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
Slide 23: Vehicle Finance - Disbursement/Portfolio Mix – FY21
Vehicle Finance - Disbursement/Portfolio Mix – FY21 Well diversified across geography Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Maharashtra Karnataka Maharashtra 6% 5% Kerala Kerala 6% 6% 5% 8% 5% Puducherry Gujarat Puducherry 10% 5% 5% Telangana Goa Telangana Gujarat 4
Slide 24: Vehicle Finance - Disbursement/Portfolio Mix – FY21
Vehicle Finance - Disbursement/Portfolio Mix – FY21 Well diversified product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler HCV CE 3 Wheeler HCV CE 1% 3% 8% 1% 10% 6% LCV 2 Wheeler 2 Wheeler 16% 7% 4% LCV 21% MUV 6% Used Vehicles CAR 27% 10% Used Vehicles MUV 32
Slide 25: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 6,084 * 6,153 383 504 5% 9% 8% 6% 8% 164 3% 413 5% 1% 2% 7% Medium Yield Low Yield * 4,781 944 * 4,703 12% 16% 16% 363 1,231 21% 258 5% 20% 230 92 321 5% 6% 777 567 6% 9% 366 9% 967
Slide 26: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise 5% 5% 6% 6% 6% * 49,936 * 50,415 * 49,264 13% 12% 11% 10% 9% 46,828 3,069 2,718 2,882 * 44,206 Medium Yield Low Yield 2,485 5,041 4,882 2,220 5,453 5,585 21% 20% 21% 21% 21% 5,603 10,209 10,472
Slide 27: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) *50,415 -13% 1,479 24,983 *44,206 48,937 23,387 2,056 20,607 42,150 20,249 40,606 31,473 14,471 *23,631 3,360 20,271 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 On Book Assignment * Tot
Slide 28: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) ** 1,736 7,388 * 449 ** 1,342 6,563 1,269 1,287 5,430 * 398 36% 988 4,192 945 3,609 682 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COV
Slide 29: Loan Against Property
Loan Against Property ary Colours 29
Slide 30: Loan Against Property – FY21 Performance
Loan Against Property – FY21 Performance Disbursements • Disbursements has declined by 1% in FY21 as compared to FY20. Asset under • The business has grown the assets by 14% in FY21. management • Loan losses is at 0.4% towards model provisions and additional 0.6% Loss and provisions has been created
Slide 31: Loan Against Property - Industry outlook
Loan Against Property - Industry outlook Sector Outlook Chola’s Position • As per CRISIL “With the pick-up in economic activity, • Collections remain a priority for the business with MSMEs have started with their businesses, leading to activities like strengthening collections team and increasing co
Slide 32: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 14,777 -1% * 12,960 2,062 3,837 3,662 3,627 * 11,626 2,425 * 10,095 1,671 3,174 *9,593 3,056 671 2,904 12,716 9,954 10,536 9,424 6,689 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY2
Slide 33: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) ** 396 1,639 ** 334 * 90 1,478 305 * 91 306 1,217 1,247 25% 1,184 244 221 207 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COVID &
Slide 34: Home Loans
Home Loans Primary Colours 34
Slide 35: Home Loans - FY21 Performance
Home Loans - FY21 Performance Disbursements • Disbursements has grown 2% in FY21 as compared to FY20. Asset under • The business has grown the assets by 39% in FY21. management • Loan losses is at 0.8% towards model provisions and additional 0.7% Loss and provisions has been created towards manageme
Slide 36: Home Loans - Industry outlook
Home Loans - Industry outlook Sector Outlook Chola’s Position Immediate term: • Chola does not have Construction Finance exposure • While there was recovery in demand in Q4 FY21, the • Chola does not have material under construction 2nd wave of Covid may result in subdued demand with exposure to dev
Slide 37: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) 2% 1,542 4,345 1,505 1,157 3,125 1,912 606 325 978 521 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 37
Slide 38: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) ** 139 76% 45% * 27 519 112 ** 78 357 78% * 15 64 189 38 101 59 6 7 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 * One time provision for COVID 19 + Macro provision ** PBT adjusted before COVID & Macro provision 38
Slide 39: Funding Profile
Funding Profile <&} Chola aXe 39 Murugappa Financial Holdings
Slide 40: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 18.64 20.69 19.07 18.36 17.36 5.41 3.93 5.03 5.12 4.92 13.61 13.24 12.44 15.28 15.14 FY17 FY18 FY19 FY20 FY21 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care I
Slide 41: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) 120% Borrowing mix by instrument type (₹Cr) * 50,567 * 55,005 * 58,513 * 60,578 * 62,047 * 63,730 100% 3% 6% 7% 4% 7% 3% 7% 4% 3% 3% 2% 3% 8% 7% 6% 7% 7% 11% 5% 6% 6% 80% 3% 4% 6% 3% 2% 2% 3% 5% 2% 10% 10% 11% 13% 15% 60% 21% 40% 60% 58% 57% 57% 55% 43% 20% 8% 8
Slide 42: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 50,567 * 55,005 * 58,513 * 60,578 * 62,047 * 63,730 100% * 70,000 8% 7% 7% 6% 7% 11% 2% 90% 2% 1% 2% 2% 3% 3% 1% 3% 4% 3% 4% 6% 6% * 60,000 5% 4% 6% 80% 1% 70% * 50,000 60% * 40,000 50% 57% 67% 65% 66% 68% 66% * 30,000 40%
Slide 43: ALM Statement as of 31st Mar 2021 (As per IND AS)
ALM Statement as of 31st Mar 2021 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 2021 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 2,526.13 676.01 1,966.35 1,131.79 23.60 0.07 104.28 0.00 6,428.24 Advances 1,976.90 1,445.31 1,545.82
Slide 44: Cholamandalam MS General Insurance Company Limited (CMSGICL)
Cholamandalam MS General Insurance Company Limited (CMSGICL) 44
Slide 45: Overview of the General Insurance Industry in India
Overview of the General Insurance Industry in India 8 45
Slide 46: Indian General Insurance: Large addressable market
Indian General Insurance: - Large addressable market Significantly underpenetrated Premium as a % GDP (CY19) Non-Life Insurance Density (Premium per capital) (CY19) (US$) (US$) 8.51 5580 4.95 2.67 2.31 2.31 2.01 1544 1.78 0.97 0.94 978 930 0.58 201 160 155 113 24 19 8 ▪ India is the 4th largest non-
Slide 47: Industry has Witnessed Strong Growth Over the last 15 Years
Industry has Witnessed Strong Growth Over the last 15 Years General Insurance Gross Premium has grown >10x over the last 15 years (Rs In Cr) Growth of 5.2% CAGR (Last 15 Years) = 16% over FY20 1,89,302 1,98,724 1,70,036 1,50,572 1,28,213 84,686 96,394 69,086 77,541 47,355 58,357 26,200 28,899 31,904
Slide 48: Motor & Retail Health are the Largest GI Segment
Motor & Retail Health are the Largest GI Segment and Continue to Grow at Steady Pace Motor accounts for 45% share of the overall GWP for Claims ratio is expected to stay flat Private General Insurers (single largest segment) (Private Motor Insurance– GWP Rs in Crs (Private Motor Insurance– Claims Ra
Slide 49: Favorable Regulations Aiding Growth
Favorable Regulations Aiding Growth Amendment to Acts expected to improve profitability and growth across segments Working well Requiring Tweaks Yet to Take Off Mandatory Long term Third Party Insurance Crop Insurance Amendments to the Motor Vehicle Act 3 years for Cars, 5 years for 2W Claim ini
Slide 50: Overview of the Company
#pledgé2protect Overview of the Compan: &} Chola Ee murugappa Financial Holdings 50 SAPP:
Slide 51: Diversified Retail Revenue Stream, ensuring lesser dependency
Diversified Retail Revenue Stream, ensuring lesser dependency Motor constitutes 71% of the GWP diversified Multi-channel model ensures lesser concentration / across usage (CV, PV and TW) & diversified revenue stream Direct Others, 13.7% Business, Others, Individual Agents, 1.2% Brokers, 5.2% 0.4% PA
Slide 52: LOB Wise - Quarterly Growth Trends
LOB Wise - Quarterly Growth Trends Other Particulars Months Fire Comml Motor HAT Crop Others Total Lines In Q4 FY’21, Chola MS Q1 FY'21 37.0% -4.4% -23.6% 4.0% -35.3% -16.7% -6.0% Q2 FY'21 27.7% 5.8% -3.5% 15.3% -8.3% 8.6% 2.8% Industry Q3 FY'21 29.9% 11.4% 7.6% 2.7% -35.9% -2.5% 1.9% • Registers gr
Slide 53: Current Partnerships (1/2)
Current Partnerships (1/2) Banks 8 Small Finance Bank/Gramin Banks NBFC’s 53
Slide 54: Current Partnerships (2/2)
Current Partnerships (2/2) OEM Private Cars 8 OEM Others Digital 54
Slide 55: Key Investment Highlights
Key Investment Highlights 8 55
Slide 56: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth FY’21 Solid GWP growth over the last 10 years 8th Largest Private Insurer Rs In Crs High growth over the last 5 years by GWP (CAGR 2015-2021 = 15.1%) 4103 4429 4398 4388 3133 2452 7th Largest 1890 3602 3992 4379 4386 Private Motor 2851 1761
Slide 57: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs Commercial 165 13% 141 100 100 67 Retail 57 41 87% 8 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 Significant growth in retail oriented policies Balanced G
Slide 58: Dominance in Motor, Diversification Underway
Dominance in Motor, Diversification Underway Motor Market Share (Largest GI Segment) Strategized diversification across Motor eco-system Private GI Market Share by GWP 0.0% 2.3% 10.1% 16.4% 7th 8.2% 8.3% 7.8% 22.4% 22.1% Largest Private 22.1% Motor General 7.4% 7.4% 7.0% 25.4% Insurer 6.5% 8 77.4% 7
Slide 59: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment Health/ PA Segment GWP grew at 18% CAGR (FY2015-21) Significant traction in Motor CAGR = 34.2% # Policies in 000s GWP Rs In Crs (FY’2015-21) 5,299 663 623 561 3,597 243 1,992 909 8 FY'15 FY'19 FY'20 FY'21 FY'15 FY'19 FY'20 FY'21 Significant net
Slide 60: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Long Lasting Channel Other Tied Channels (Chola Finance + Coromandel+ SMO) (IBL + Toyota) (PSU Banca, NBFC, OEM) 35.9% of FY21 GWP 21.1% of FY21 GWP 26.2% of FY21 GWP GWP Rs In Crs CAGR = 38.8% GWP Rs In Crs GWP Rs In Crs 1237 1
Slide 61: Pan India Multi-channel distribution network
Pan India Multi-channel distribution network Offices as on Mar’21 141 471 Chola MS branches Digitally Enabled Offices across India (Chola Insurance Xpress) 37 37 1000+ Access to Chola Finance Virtual Offices 8 branches 50k+ Network of agents 12+ Large OEM partnership 15+ 40K Access to 40k+ PSB Banca
Slide 62: Strengths in Bancassurance
Strengths in Bancassurance Chola MS - No 1 in GI Bancassurance Space (Non Captive) – FY’20 The First 5 The Next 5 The Rest 2171 All Figures In 1501 1434 1406 Rs. Cr 1037 758 263 174 165 8 120 69 68 22 3 1 1 0 0 SBI ICICI Bharti Axa ITGI Godigit HDFC Ergo Generali Videcon Shriram Magma HDI DHFL Chola
Slide 63: Superior Claims Management Process
Superior Claims Management Process 11,180 9,504 94% Network of cashless Network of cashless In-house claims garages hospitals assessment 80% 54% Industry highest Cost savings due to negotiated early and out of 8 settlement in TP court settlement High settlement ratio in OD Highest settlement in TP (
Slide 64: Tech Enablers across the value chain
Tech Enablers across the value chain Channels Platforms Service Improvement (Products & Services) (Scale, User Experience) (Productivity, Ease of use) ▪ ~93% of monthly policy issuance is through ▪ Introduced Phoenix as new microservices ▪ RPA bots enabling 25+ processes in finance, system integrate
Slide 65: Glimpse of new Tech & Digital Capabilities (1/2)
Glimpse of new Tech & Digital Capabilities across the value chain (1/2) Distribution Build Sales Fulfilment Underwriting SME Commercial Tailor UW OCR End to End Digital Policy Issuance Health Rules Assets Health Pre Policy Onboarding of agents Health Policy Engine (UW & (Prospecting, lead, COP, Issu
Slide 66: Glimpse of new Tech & Digital Capabilities (2/2)
Glimpse of new Tech & Digital Capabilities across the value chain (2/2) Claims Renewals Operations & Servicing TP Claim Risk Motor TP Claim Risk NRLMS Health Claim Workflow Assets Scoring Model Renewal Lead RPA for Claims, AI based Claims OCR Provider Portal Management & Finance, proctoring for new
Slide 67: Robust Enterprise-wide Risk Management Framework
Robust Enterprise-wide Risk Management Framework Claims Risk Active Fraud Control Unit, Fraud Analytics, Centralised verification of all motor claims Underwriting Client wise and location wise monitoring of risk accumulation on monthly basis Business sourcing Focus on diversification across channels
Slide 68: Constantly improving operating metrics
Constantly improving operating metrics Particulars 2018-19 2019-20 2020-21 Number of Customers Rs. Lacs 100 141 165 Number of policies issued Rs. Lacs 29 45 63 Chola MS Branch No’s 90 135 141 Digital enable office No’s 469 510 471 8 PSB Branches No’s 19000+ 41000+ 40000+ Motor OD Claims Settlement %
Slide 69: Financial Summary
#pledgePprotect Ch Ss ‘ial Summary &} Chola Ee murugappa Financial Holdings 69 SAPP:
Slide 70: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) 30.9% 27.8% 4824 4705 19.4% 18.7% 4103 4398 4388 16.2% 14.9% 3133 9.8% 6.0% 7.8% -0.7% -0.2% -2.5% FY'17 FY'18 FY'20 FY'20(IND FY'21 FY'21(IND FY'17 FY'18 FY'20 FY'20(IND FY'21 FY'21(IND AS) AS) AS) AS) 8 Break up of CoR(%)
Slide 71: Top 10 Private companies LR & COR – YTD Dec FY'21
Top 10 Private companies LR & COR – YTD Dec FY’21 NIC/NEP On LRs, CoR Acq costs After Insurers Motor + EOM / Chola MS compares favourably Strain Health Fire PA Overall NEP despite higher TP mix. OD TP ICICI Lombard 61.7% 65.7% 88.5% 73.9% 24.8% 67.5% 33.8% 101.4% On Acq costs + EOM, Bajaj Allianz 49
Slide 72: Profit and Loss (Rs. Crs)
Profit and Loss (Rs. Crs) FY’20 IND FY’21 Particulars – In Rs. Cr FY17 FY18 FY19 FY’20 AS I GAAP IND AS Gross Written Premium 3133 4103 4429 4398 4824 4388 4705 Net Earned Premium 2248 2824 3050 3437 3437 3202 3202 PBT 297 347 257 260 216 375 367 PAT 208 243 179 149 125 282 276 8 Networth 1075 1296
Slide 73: Investment Book Overview (Rs. Crs)
Investment Book Overview (Rs. Crs) Catogery Mar-18 Mar-19 Mar-20 Mar-21 Mar-18 Mar-19 Mar-20 Mar-21 C Govt Sec 1303 1623 2623 4155 20.5% 21.3% 28.1% 37.7% S Govt Sec 805 1436 3693 3508 12.7% 18.9% 39.6% 31.8% Housing sector 1040 1027 620 955 16.4% 13.5% 6.6% 8.7% Infra sector 1216 1505 688 771 19.1%
Slide 74: Stage 3 - Provisions & Write off – March 2021
Stage 3 - Provisions & Write off – March 2021 (Rs. in Crs) Provision Net Exposure Int. Acc. Total % on Name of the Issuer Exposure ECL Write off (Post But not due Impairment Gross Impairment) exposure DHFL 156.70 24.13 46.88 96.40 143.28 37.55 79.23% ILFS 106.97 17.80 21.11 82.69 103.81 20.97 83.19%
Slide 75: Contact us
Contact us Cholamandalam Financial Holdings Limited (CFHL), Dare House, No. 234, NSC Bose Road, Parrys, Our registered Chennai 600001. office Land Line: 044–40907638 http://www.cholafhl.com Email-ID Krithika E - Company Secretary–krithikae@cfhl.murugappa.com 75
Slide 76: 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 Financial Holdings Ltd and its subsidiaries. There can be no assur
Slide 77: Thank You
Financial Holdings Thank You ake murugappa
Cholamandalam Financial Holdings — Investor Presentation (March 2021) on 6ix