Cholamandalam Financial Holdings Ltd · NSE:CHOLAHLDNG
Cholamandalam Financial — Q3 FY24 Earnings Presentation
71 slides from Cholamandalam Financial's earnings presentation, Feb 5, 2024
Slide 1: Letter to stock exchanges: Presentation to Analyst / Investor
February 5, 2024 The Manager The Secretary Listing Department BSE Limited, National Stock Exchange of India Ltd 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor Dalal Street, Fort, Plot No.C-1, Block G Mumbai 400 001 Bandra-Kurla Complex Bandra (E) Mumbai 400 051 Symbol : CHOLAHLDNG
Slide 2: Corporate Presentation – Q3-FY24
CHOLAMANDALAM FINANCIAL HOLDINGS LIMITED CORPORATE PRESENTATION – Q3-FY24 1
Slide 3: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 123 Years of $9.0 $37.7 Turnover cap (as on 31st Years Existence B B (FY23) Dec 2023) Listed 3 Sectors 29+ Businesses 10 Companies 50 Geographical 113 Manufacturing 73,000+ Work force Countries Presence Locations Locations 2
Slide 4: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 46,752 89,625 1,25,340 Turnover (Cr.) 35,171 19,032 19,124 PAT(Cr.) 1,541 1,739 2,917 Market Cap(Cr.) 36,870 9,882 21,159 68,466 1,05,819 NA 19,521 Turnover (Cr.) 29,587 5,584 4,601 14,431 12,884 6,15
Slide 5: 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 6: Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company)
Cholamandalam Financial Holdings Limited (CFHL) (Core Investment Company) 44.41% 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 7: Shareholding Pattern
Shareholding Pattern Institutional Holders (More than 1%) Shareholding Pattern as of December 31, 2023 Top Domestic Institutional Holdings * ICICI Mutual Fund * Aditya Birla Mutual Fund 16.15% * HDFC Mutual Fund * Nippon India Mutual Fund 47.37% * Sundaram Mutual Fund 12.74% * Axis Mutual Fund 23.74
Slide 8: Performance Highlights - Consolidated
Performance Highlights - Consolidated Rs.in Cr. Rs.in Cr. Revenue Profit after tax EPS (Rs.) Revenue Profit after tax EPS (Rs.) Q3 FY24 6,842 1,027 24.88 YTD Dec-23 18,929 2,707 67.07 43% 43% 41% 45% 42% 43% Q3 FY23 4,777 720 17.69 YTD Dec-22 13,095 1,909 46.99 7
Slide 9: Performance Highlights - Consolidated
Performance Highlights - Consolidated Profit After Tax (Rs.in crs) Profit After Tax (Rs. in crs) 1,200 3,000 1,000 2,500 2,707 1,027 2,000 2,355 800 872 1,810 1,909 600 720 1,500 685 400 1,000 153 500 200 35 346 95 6 4 2 1 - - CIFCL CMSGICL Others CFHL Consol CIFCL CMSGICL Others CFHL Consol Q3 FY24
Slide 10: Financial Performance & Metrics
Financial Performance & Metrics CFHL - Standalone CIFCL YTD Dec-23 YTD Dec-22 Particulars (Rs. in Cr) YTD Dec-23 YTD Dec-22 Disbursements (Rs. in Cr) 63,940 45,512 As of As of Income 34.47 32.91 31-Dec-2023 31-Mar-2023 Expenses 4.62 6.98 Asset Under Management (Rs. in Cr) 1,41,143 1,12,782 Profit Be
Slide 11: Regulatory Ratios of CFHL
Regulatory Ratios of CFHL Rs Crs As of As of Particulars December 31, 2023 March 31, 2023 Owned Funds (A) 1,240.29 1,226.02 Adjusted Networth (B) 22,290.56 14,387.29 Risk Weighed Assets ( C) 1,280.72 1,280.89 Outside Liabilities (D) 53.65 52.39 Net assets (E) 1,279.43 1,280.23 Investment in equity s
Slide 12: Cholamandalam Investment and Finance Company Limited
Cholamandalam Investment and Finance Company Limited 11
Slide 13: Disbursements
Disbursements Disbursements (₹Cr) Disbursements (%) * 63,940 16% 23% 20% 23% 14,659 23% 21% 23% 22% 5% * 45,512 5% 6% 4,615 7% 7% 6% 7% 7% 15% 15% 14% 9,040 9,281 13% 13% 15% 15% 15% 2,425 6,537 * 21,542 * 22,383 * 20,015 * 17,559 5,033 64% * 13,329 4,581 * 14,623 5,044 3,787 1,587 35,385 57% 58% 54
Slide 14: Assets Under Management
Assets Under Management Business - Assets under Management (₹Cr) Business - Assets under Management (%) * 1,33,794 * 1,24,246 4% 10% 5% 10% 7% 15,214 11% * 1,14,796 7% 8% 13,327 8% 11,337 12,049 8% 9% 9% 10,801 * 95,468 22% 21% 21% 9,528 * 87,668 20% * 81,925 6,907 26,891 20% 20% 2,937 22,866 4,765
Slide 15: Profitability and Net worth
Profitability and Net worth Profit after tax (₹Cr) Networth (₹Cr) 2365 *18,598 168 *15,773 *15,030 1813 165 168 *13,530 *12,316 *12,849 164 164 164 18,430 14,862 15,609 876 13,366 762 12,152 12,684 726 684 566 563 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 FY23 FY24 FY23 FY24 FY23 FY24 Dec22 Dec23
Slide 16: Chola – Stage 3 Assets Trend
Chola –Stage 3 Assets Trend Chola 47.32% 50.00% 46.00% 45.40% 12.00% 45.15% 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% 3.01% 3.06% 30.00% 4.00% 2.96% 2.82% 1.73% 1.69% 1.59% 1.44% 2.00% 1.38% 1.39% 1.40% 1.27% 25.00% 3.58% 2.64% 2.4
Slide 17: Vehicle Finance
Vehicle Finance Primary Colours 16
Slide 18: Vehicle Finance: Q3 FY24 & YTD Dec23 Performance
Vehicle Finance: Q3 FY24 & YTD Dec23 Performance • Disbursements grew by 18% in Q3 FY24 to Rs. 12,354 Cr & by Disbursements 29% in YTD Dec23 to Rs. 35,385 Cr as compared to Q3 FY23 & YTD Dec22 respectively. Assets under • AUM has grown by 30% YoY. management Loss and • Loan losses at 1.3% in Q3 FY24
Slide 19: 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 ▪ We will continue our focus in this segment in line growth of 6% in Q3 FY’24 & 4% as of YTD with rural demand and industry growth. Dec’23 which is an all-time high sales for
Slide 20: 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 ▪ We will continue to focus in this segment in line had a growth of 8% in Q3 FY’24 and 7% as of with market trends especially retail customers. YTD Dec’23 with an all-time high
Slide 21: 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 ▪ Our exposure in this segment is around 7% at a growth of 36% in Q3 FY’24 and 27% as of YTD portfolio level. We will continue to build a quality Dec’23. This is an all-time hig
Slide 22: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year CAGR Chola YoY growth rate -25% (in Units) Chola 4 year (in Units) Chola YoY growth rate -2% (0%) CAGR 13% Industry 4 year CAGR Industry YoY growth 59576 (5%) rate -2% 170052 52862 50490 46679 45747 CAGR @ 5%
Slide 23: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) Chola 4 Chola 4 year Chola YoY growth rate -5% (in Units) year CAGR Chola YoY growth rate 18% CAGR 42% 26% 117435 1508855 CAGR @ 10% CAGR @ 10% 72918 75808 1014125 897983 936880 51137 761336 40765 Q3 FY'21
Slide 24: 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 25: 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 26: Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec23
Vehicle Finance - Disbursement/Portfolio Mix – YTD Dec23 Well diversified across geography Disbursements - State wise Portfolio - State wise Dadra and Dadar and Nagar Haveli Nagar & Daman and Haveli & MP Diu AP MPDaman AP Karnataka and Diu Maharashtra 0.05% 0.04% Maharashtra Karnataka 5% 6% 5% Gujar
Slide 27: Vehicle Finance - Disbursement/Portfolio Mix – Q3 FY24
Vehicle Finance - Disbursement/Portfolio Mix – Q3 FY24 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise HCV 3 Wheeler HCV CE CE 3 Wheeler 5% 1% 7% LCV 6% 7% 1% 15% 2 Wheeler LCV 2 Wheeler 11% 20% 6% MUV 10% Used Vehicles MUV 27% 10% CAR Used Vehicles 12
Slide 28: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 12,190 * 12,354 7% 6% 5% 6% * 11,731 7% 882 * 11,301 738 5% 5% 5% 5% 627 9% Medium Yield Low Yield * 10,446 613 1,053 653 640 584 17% 16% 15% 687 1,853 17% 560 1,860 18% 2,211 1,936
Slide 29: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 79,640 7% 7% 7% 7% 7% * 75,396 * 71,065 5,201 7% 7% 7% 7% 7% * 66,938 4,906 5,221 4,721 5,058 * 61,285 4,487 Medium YieldLow Yield 4,878 21% 21% 21% 21% 20% 4,742 15,872 3,990 15,583 4,126 14
Slide 30: Vehicle Finance - Disbursements and Asset Under Management
Vehicle Finance - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under management (₹Cr) * 79,640 35,385 *75,396 63 *71,065 97 146 27,509 * 61,285 *57,606 305 *55,376 417 547 79,577 75,299 70,918 57,189 60,980 11,731 12,354 54,829 11,301 10,446 8,562 8,502 Q1 Q1 Q2 Q2 Q3 Q3 YTD Y
Slide 31: Vehicle Finance - Income and Profit before tax
Vehicle Finance - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 7% 8,130 1,644 1,538 6,403 9% 2,943 643 2,690 590 2,498 480 501 2,133 2,257 468 499 2,013 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY23 FY24 FY23 FY24 FY23 FY24 Dec22Dec23 FY23 FY24 FY23 FY24 FY23 FY24 Dec
Slide 32: Loan Against Property
Loan Against Property ary Colours 31
Slide 33: Loan Against Property – Q3 FY24 & YTD Dec23 Performance
Loan Against Property – Q3 FY24 & YTD Dec23 Performance • Disbursements grew by 51% in Q3 FY24 to Rs. 3,409 Cr & by 42% Disbursements in YTD Dec23 to Rs. 9,281 Cr as compared to Q3 FY23 & YTD Dec22 respectively. Asset under • AUM has grown by 34% YoY. management • Loan losses dropped to -0.04% in Q3
Slide 34: Loan Against Property: Industry outlook
Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL estimates the LAP segment to experience growth • Chola’s LAP team is currently focusing on at a rate of 13-15% for FY24. Similarly, strong growth is increasing its market share backed by consistent anticipated in fiscal
Slide 35: Loan Against Property - Disbursements and Asset Under Management
Loan Against Property - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) * 26,891 9,281 881 * 24,721 * 22,866 950 1,030 * 19,997 * 18,843 * 17,675 1,205 6,537 1,318 1,418 26,010 23,771 21,836 18,792 3,192 3,409 16,257 17,525 2,679 2,036 2,246 2,255 - - Q1 Q1
Slide 36: Loan Against Property – Income and Profit before tax
Loan Against Property – Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 2,291 703 1,640 564 831 704 757 245 224 234 597 200 186 503 540 178 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY23 FY24 FY23 FY24 FY23 FY24 Dec22Dec23 FY23 FY24 FY23 FY24 FY23 FY24 Dec22 Dec23 35
Slide 37: Home Loans
Home Loans Primary Colours 36
Slide 38: Home Loans – Q3 FY24 & YTD Dec23 Performance
Home Loans – Q3 FY24 & YTD Dec23 Performance • Disbursements grew by 48% in Q3 FY24 to Rs. 1,587 Cr & by 90% Disbursements in YTD Dec23 to Rs. 4,615 Cr as compared to Q3 FY23 & YTD Dec22 respectively. Asset under • AUM have grown by 66% YoY. management • Loan losses dropped to 0.4% in Q3 FY24 from 0
Slide 39: 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 consolidate its position across 14-16% in FY24 branches pan-India while also targeting expansion in newer underpenetrated geographies • GNPAs of AHFCs are expected
Slide 40: Home Loans - Disbursements and Asset Under Management
Home Loans - Disbursements and Asset Under Management Disbursements (₹Cr) Assets under Management (₹Cr) *12,049 374 4,615 *10,801 *9,528 392 413 *7,278 *6,454 456 *5,938 478 2,425 500 11,674 10,409 9,115 1,575 1,587 6,822 1,454 5,976 5,438 1,072 743 611 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 FY
Slide 41: Home Loans - Income and Profit before tax
Home Loans - Income and Profit before tax Income (₹Cr) Profit before tax (₹Cr) 1,223 319 223 680 481 137 398 344 96 87 254 85 74 204 222 64 Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD Q1 Q1 Q2 Q2 Q3 Q3 YTD YTD FY23 FY24 FY23 FY24 FY23 FY24 Dec22 Dec23 FY23 FY24 FY23 FY24 FY23 FY24 Dec22 Dec23 40
Slide 42: Funding Profile
Funding Profile <&} Chola aXe 41 Murugappa Financial Holdings
Slide 43: CAR and Credit Rating
CAR and Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 19.62 19.37 17.13 17.44 16.62 3.13 3.82 2.35 2.30 1.96 16.49 14.78 15.14 14.66 15.55 FY22 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Loan type India ratings Care ICRA C
Slide 44: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 89,305 * 97,356 * 1,08,140 * 1,19,470 * 1,23,103 6% 4% 6% 7% 5% 3% 3% 3% 3% 3% 9% 10% 15% 17% 4% 4% 16% 4% 4% 3% 2% 2% 4% 5% 5% 18% 16% 15% 14% 15% 52% 54% 49% 49% 48% 4% 5% 5% 4% 4% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY2
Slide 45: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by investor type * 89,305 * 97,356 * 1,08,140 * 1,19,470 * 1,23,103 9% 10% 15% 16% 17% 1%3% 3% 1% 3% 3% 1% 3% 3% 0.4%3%2% 3% 1% 2% 64% 65% 61% 60% 59% 1% 1% 1% 1% 6% 1% 6% 6% 6% 6% 10% 8% 7% 8% 8% 3% 3% 3% 3% 3% Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY2
Slide 46: ALM Statement as of 31st Dec 2023 (As per IND AS)
ALM Statement as of 31st Dec 2023 (As per IND AS) (₹Cr) ALM snapshot as on 31st Dec 2023 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 3,445.08 579.16 1,647.45 1.95 37.87 1,489.55 532.21 8.47 7,741.73 Advances 5,681.00 3,977.23 4,898.02
Slide 47: Cholamandalam MS General Insurance Company Limited
Cholamandalam MS General Insurance Company Limited Financial data in this section is as per IGAAP 46
Slide 48: Chola MS General Insurance: Brief Overview
Chola MS General Insurance: Brief Overview Murugappa Group Mitsui Sumitomo Insurance, Japan ◼ Murugappa Group - India's leading business ◼ Mitsui Sumitomo Insurance - part of MS&AD – one of conglomerate the largest insurance group in the world. ◼ Founded in 1900, Headquartered in Chennai, the INR 74
Slide 49: Key Financial Parameters (Rs. Crs)
Key Financial Parameters (Rs. Crs) Particulars – In Rs. Cr FY'22 FY'23 Q3 FY'23 Q3 FY'24 YTD Dec FY'23 YTD Dec FY'24 Gross Written Premium$ 4854 6200 1637 1870 4424 5578 Growth 10.3% 27.6% 23.3% 14.2% 27.8% 26.1% NWP 3572 4610 1259 1386 3289 3978 NEP 3437 4019 1035 1346 2937 3792 U/W Results -433 -6
Slide 50: LOB Wise - Quarterly Growth Trends of Multi-line Insurers
LOB Wise - Quarterly Growth Trends of Multi-line Insurers Other Particulars Months Fire Comml Motor Health PA Crop Others Total Lines Q1 FY'24 5.9% 8.2% 20.9% 18.5% 31.3% 16.7% 19.4% 16.5% Chola MS Q2 FY'24 7.4% 4.1% 13.9% 28.9% 11.7% 23.0% 23.4% 18.6% Industry Q3 FY'24 10.5% 10.7% 10.0% 10.5% -4.8%
Slide 51: Among the Top ranked GI Players supported by strong growth
Among the Top ranked GI Players supported by strong growth Solid GDPI* growth over years (CAGR FY2016 - FY 2023 = 14.1% (With Crop); 15.0% (Without Crop) Rs In Crs YTD Dec FY’24 6156 4824 5525 4103 4429 4398 4388 Growing Market 2452 3133 Share 6158 4714 3602 3992 4379 4386 4824 2313 2851 139 282 501
Slide 52: Key Financial Indicators
Key Financial Indicators GWP (INR Cr) and Growth (%) Return on Net Worth(%) Includes RI Inwards FY’22 Excluding exceptional item RoNW @ 9.13% 26.7% 26.1% 27.8% 10.9% 700 0 6200 5578 30. 0% 600 0 23.3% 25. 0% 9.2% 4854 4424 500 0 14.2% 20. 0% * 5.6% 10.3% 400 0 300 0 15. 0% 3.9% 4.1% 200 0 1637 1870
Slide 53: Capital efficiency - No Capital Infusion Since FY’15
Capital efficiency - No Capital Infusion Since FY’15 Capital Invested - Net Worth Rs In Crs Net Worth 1962 2160 2078 2424 1520 1718 1636 1982 442 442 442 442 FY'22 FY'23 Q3 FY'23 Q3 FY'24 Capital Invested Reserves ▪ Accumulated profits @ 81.8% of Net worth (Rs. 2424 Crs) as on Dec 2023 ▪ Total Capit
Slide 54: Consistent Operating Metrics
Consistent Operating Metrics YTD Dec Particulars 2020-21 2021-22 2022-23 FY’24 Number of Customers (Live Customer) No in Lacs 165 254 336 448 Number of policies issued No in Lacs 63 99 121 99 Market Presence(Branch + CIE + VO) No’s 593 638 604 663 Bank Branches No’s 37000+ 34000+ 34000+ 34000+ Motor
Slide 55: Claims Ratio (%)
Claims Ratio (%) YTD Dec YTD Dec Line of Business FY'22 FY'23 Q3 FY'23 Q3 FY'24 FY’23 FY’24 Motor OD 69.8% 71.7% 68.8% 71.4%^ 71.5% 73.3%^ Motor TP 63.4%* 77.0% 75.7% 75.6% 76.6% 76.4% Motor Total 65.1% 75.6% 73.8% 74.3% 75.2% 75.5% Health, Travel & PA 117.1% 66.6% 70.9% 66.5% 66.0% 65.8% Crop NA NA
Slide 56: Investment Book Overview (Rs In Crs)
Investment Book Overview (Rs In Crs) Category Mar-21 Mar-22 Mar-23 Dec-23 Govt Securities 7663 8290 9579 10087 PSU / Corporate Bonds 2253 2834 4483 4858 Equity 76 151 321 568 Others 1041 1229 300 302 Grand Total 11034 12504 14683 15816 Yield with profit on sale 7.6% 6.8% 6.5% 6.93% Yield without pro
Slide 57: Dominance in Motor, Diversification Underway
Dominance in Motor, Diversification Underway Motor Market Share (Largest GI Segment) Strategized diversification across Motor eco-system GI Market Share by GWP 74.3% 83.0% 74.3% 65.1% 75.6% 75.5% 5.3% 5.3% 2.3% 10.1% 16.4% 19.6% 17.2% 23.1% 4.9% 4.6% 75.6% 44.6% 42.3% 4.7% 4.7% 67.9% 58.2% 47.6% 29.
Slide 58: Dominance in Motor, Gaining Prominence in Other Segment
Dominance in Motor, Gaining Prominence in Other Segment 9.4% 8.9% 9.5% 7.3% 13.0% 13.3% 10.2% 13.6% 6.3% 6.8% 6.3% 12.6% 6.1% 71.2% 71.0% 70.6% 63.8% FY'21 FY'22 FY'23 YTD Dec FY'24 Motor PA & Others Commercial Health Crop ▪ Focus on Commercial business (including SME business) mix @ ~13% ▪ Health m
Slide 59: Retail Focused Diversified Operations
Retail Focused Diversified Operations Retail dominated business mix Granular book aided by increasing dispersed customer base Customers (#) in Lacs 448 Commercial 17.3% 336 254 165 Retail 82.7% FY'21 FY'22 FY'23 YTD Dec FY'24 Significant growth in retail oriented policies Geographic Presence – Mix %
Slide 60: Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream
Multi-Channel Model Ensures Less Concentration & Diversified Revenue Stream Channel wise Mix% 8.0% 6.5% 6.3% 5.1% 8.2% 4.4% 5.2% 5.1% 5.4% 12.6% 20.9% 25.0% 32.5% 40.4% 36.2% 34.1% 35.9% 34.9% 31.1% 28.5% 32.6% 27.5% 21.2% 18.1% 14.5% FY'20 FY'21 FY'22 FY'23 YTD Dec FY'24 Banks Corporate Agent Capti
Slide 61: Balanced Revenue Mix: Stable in-house + Growth Channels
Balanced Revenue Mix: Stable in-house + Growth Channels Captive Channel Other Tied Channels PSU Banks + New Bank Tie ups (CIE + Chola Finance + Coromandel) (IBL, NBFC, OEM) 28.5% of YTD Dec FY’24 GWP 8.6% of YTD Dec FY’24 GWP 51.3% of YTD Dec FY’24 GWP GWP Rs In Crs GWP Rs In Crs GWP Rs In Crs 1913
Slide 62: Tech Enablers across the value chain of functionalities
Tech Enablers across the value chain of functionalities to enable better user experience and productivity Products & Services Scalable Platforms • ~94% of monthly policy issuance is • Microservices based platform • Health sourcing platform with through system integrated channels for transactions at
Slide 63: Glimpse of new Tech & Digital Capabilities across the value chain
Glimpse of new Tech & Digital Capabilities across the value chain leading to superior partner and customer experiences Distribution build Sales fulfilment Underwriting Taylor UW OCR Phoenix Tele UW 100% 100% 2 min 75% 100% Digital Onboarding Policy issuance Instant policy STP issuance Digitization o
Slide 64: Indian General Insurance: Large addressable market
Indian General Insurance: - Large addressable market Significantly underpenetrated Premium as a % GDP Non-Life Insurance Density (Premium per capital) (CY22) (US$) (CY22) (US$) 9.0 6868 5.8 2.4 2.3 2.2 1.9 1.9 1836 1.0 1111 748 0.6 0.5 234 168 149 87 26 22 China Indonesia Brazil UK Japan India Russi
Slide 65: 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 CAGR (Last 15 Years) = 14.9% 14.0% over YTD Dec FY’23 256912 220772 213486 189302 198724 170036 150572 128213 96394 58357 69086 77541 84686 38400 473
Slide 66: 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 41.3% share of the overall GWP Motor Claim ratio for Private General Insurers (single largest segment) (Private Motor Insurance– GWP Rs in Crs (Private Motor Insurance– Claims Ratio) CAGR: 14% 83%
Slide 67: Favorable Regulations Aiding Growth
Favorable Regulations Aiding Growth Amendment to Acts expected to improve profitability and growth across segments Growth Oriented Requiring Tweaks Impending Mandatory Long term Third Party Insurance Crop Insurance Courts’ recognition of amended MV Act PMFBY financially supports Claim initiation
Slide 68: Impact of Catastrophic Events in Incurred Claims: Snapshot
Impact of Catastrophic Events in Incurred Claims: Snapshot Rs.in Crs YTD Dec FY'24 Catastrophic Event Year Gross Net South TN Floods 2023 12 6 Cyclone Michaung 2023 211 18 North India Floods 2023 39 15 Cyclone Biparjoy 2023 35 9 Other Events 2023 7 5 Total 304 54 67
Slide 69: Contact us
Contact us Cholamandalam Financial Holdings Limited (CFHL), Dare House, No. 234, NSC Bose Road, Parrys, Our registered Chennai 600001. office Land Line: 044–4090 7638 / 2530 6486 http://www.cholafhl.com Email-ID Krithika E - Company Secretary–krithikae@cfhl.murugappa.com 68
Slide 70: 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 71: Thank You
Thank You <> Chola 2% Financial Holdings murugappa
Cholamandalam Financial Holdings — Q3 FY24 Earnings Presentation on 6ix