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

Cholamandalam Investment And Finance — Investor Presentation (December 2023)

83 slides from Cholamandalam Investment And Finance's investor presentation, December 2023

  1. Slide 1: Corporate Presentation - December 2023

    CORPORATE PRESENTATION - December 2023

  2. Slide 2: Table of Contents

    Table of Contents 1. Group overview 2. Corporate 3. Financial 4. Business overview performance segments' overview 5. Funding profile 6. Subsidiaries 7. Environmental 8. Risk performance Social Governance management 2

  3. Slide 3: Murugappa Group Overview

    Murugappa Group Overview 3

  4. Slide 4: 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 4

  5. Slide 5: 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

  6. Slide 6: Corporate Overview

    eB) PY © as O ok i O UO = ov fe © > O

  7. Slide 7: 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

  8. Slide 8: Cholamandalam Investment & Finance Company Limited

    Cholamandalam Investment & Finance Company Limited 33.1 lakh + customers 52,408 employees Helping customers enter better life Experienced team to serve more customers 2 lakh customers in year 2000 to 33.1 lakh plus customers till date 200 plus employees in year 2000 to 50,000+ employees today Rs. 1.

  9. Slide 9: Our journey so far

    Our journey so far FY 2024 FY 2022 - 23 FY 2021 FY 2016-20 2024 • Total AUM crossed 2022 ₹1.4 lakh Cr. FY 2010-15 2021 • Launched • LAP platform Consumer & Small 2016 • Increased branch • New LEAP LOS Digital platform digitization Enterprise Loan FY 1979-2010 network to 1309. (CSEL), Secured 2011 20

  10. Slide 10: Highlights – YTD Dec23 (I)

    Highlights – YTD Dec23 (I) Particulars YTD Dec23 Vs YTD Dec22 Disbursement Disbursement at Rs.63,940 Cr, a growth of 40%. Business AUM Rs. 1,33,794 Cr in Q3 FY24 registering a growth of 40%. NIM 7.4% as compared to 7.7% PBT Rs.3,145 Cr, a growth of 29% PBT – ROTA 3.3% as compared to 3.6% Return on E

  11. Slide 11: Highlights – YTD Dec23 (II)

    Highlights – YTD Dec23 (II) Particulars YTD Dec23 Vs YTD Dec22 • Well-diversified product portfolio spread across 1254 branches PAN India • Focused on financing of Commercial, Passenger, Two-wheelers, Tractors and VEHICLE FINANCE Construction Equipment in both New and Used Vehicles. Overview • Our f

  12. Slide 12: Highlights – YTD Dec23 (III)

    Highlights – YTD Dec23 (III) Particulars Highlights ▪ CSEL - Offers Personal Loans, Professional Loans & Business Loans to salaried, self-employed professionals and micro & small businesses through traditional DSA/DST model, partnerships and FinTech's. – present in 420 locations (419 co-located & 1

  13. Slide 13: 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 5 years Medium (SENP) Focused by via LAP business since the last 15 years Small (SENP & SEP) Focused by via CSEL business | New Business Mini (SENP) Focused by via SBPL|

  14. Slide 14: Shareholding

    Shareholding Shareholding Pattern Institutional Holders (More than 1%) Corporate Mutual Bodies Top Domestic Institutional Holding Funds 0.74% • Axis Mutual Fund 18.39% • SBI Mutual Fund • HDFC Mutual Fund Public 5.37% • Birla Sun Life Mutual Fund Promoters 50.37% • Motilal Oswal Top Foreign Institut

  15. Slide 15: Strong Geographical Presence

    Strong Geographical Presence 571 593 Jammu & Kashmir (7) 516 540 Punjab (26) Himachal Pradesh (16) Chandigarh (1) 1191 1204 1267 1309 Uttarakhand (20) Haryana (40) Sikkim (1) Arunachal Delhi (5) Pradesh (1) Rajasthan (89) UP (83) Assam (30) FY23 Q1 FY24 Q2 FY24 Q3 FY24 Physical Branch RL Meghalaya (

  16. Slide 16: Financial Performance

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

  17. Slide 17: Financial Snapshot — 10 Years

    Financial Snapshot —10 Years FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR CAGR Financials Snapshot YoY (5 (10 IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS INDAS INDAS INDAS years) years) Disbursem ents 13,114 12,808 16,380 18,591 25,114 30,451 29,091 26,043 35,490 66,532 87% 22% 20% Assets un

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: Chola – Disbursement & Portfolio Mix – YTD Dec23

    Chola – Disbursement & Portfolio Mix – YTD Dec23 Well diversified product segments Disbursements (%) - Product wise Portfolio (%) - Product wise 3 Wheeler SBPL 3 Wheeler 1% 1% 1% SBPL 2 Wheeler 1% SME SME 2 Wheeler 5% 3% 4% 9% CSEL 7% CSEL HL Us ed Vehicles 13% Us ed Vehicles 9% 16% 18% Tra ctor Tra

  21. Slide 21: 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

  22. Slide 22: Asset Ratios

    Asset Ratios Net Income Margin (%) Expenses Ratio (%) 8.0% 3.1% 3.1% 7.6% 7.4% 7.6% 7.4% 7.7% 7.4% 2.8% 3.0% 3.0% 3.0% 2.9% 7.3% 2.7% 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 Loan Losses & Provisions (%) R

  23. Slide 23: Shareholders’ Returns Ratios

    Shareholders’ Returns Ratios Return on equity (%) Earnings per share (₹) 41.6 20.6% 36.9 38.0 20.3% 35.5 19.9% 33.0 19.7% 19.8% 29.3 27.6 27.2 19.1% 18.9% 17.8% 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 Dec22Dec23 P/E

  24. Slide 24: Profit and Loss Statement (As per IND AS)

    Profit and Loss Statement (As per IND AS) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-o-Q3 Y-o-Y Disbursements 13,329 20,015 14,623 21,542 17,559 22,383 27% 45,512 63,940 40% Closing Assets - Managed 86,703 1,22,755 91,841 1,33,775

  25. Slide 25: Balance Sheet (As per IND AS)

    Balance Sheet (As per IND AS) ₹ Cr Particulars Dec22 Mar23 Dec23 ASSETS Financial Assets 1,03,086 1,12,075 1,41,703 Cash and Bank balance 5,054 2,961 4,187 Derivative financial instruments 352 273 244 Receivables 163 191 391 Loans 93,546 1,04,748 1,32,532 Investments 3,709 3,628 4,134 Other Financia

  26. Slide 26: Stagewise Assets & Provision Summary

    Stagewise Assets & Provision Summary ₹ Cr Sep23 Dec23 Sep23 Dec23 Particulars INR Cr INR Cr % to GA % to GA Gross Assets 1,25,578 1,35,236 100.0% 100.0% Sta ge 1 1,17,818 1,27,282 93.82% 94.12% Sta ge 2 4,041 4,144 3.22% 3.06% Sta ge 3 3,719 3,811 2.96% 2.82% Provision 2,689 2,704 2.14% 2.00% Sta ge

  27. Slide 27: Stagewise ECL Summary – Dec 23

    Stagewise ECL Summary – Dec 23 Total Total Particulars Asset Provn NNPA Asset Provn NNPA Rs in Cr % Stage 1A (A ) 1,27,032 544 1,26,488 93.93% 0.43% 93.53% Stage 1B (B ) 250 12 238 0.18% 4.65% 0.18% Total Stage 1 (C ) 1,27,282 555 1,26,726 94.12% 0.44% 93.71% - Stage 2A (D ) 2,905 275 2,630 2.15% 9.

  28. Slide 28: Stage 3 Assets Product-wise

    Stage 3 Assets Product-wise ₹ Cr Closing Gross Stage 3 ECL Provision Net Net Asset Class Asset Stage 3 Asset % Provision Coverage Stage 3 Stage 3% Dec23 1,35,236 3,811 2.82% 1,720 45.15% 2,091 1.55% VF 81,492 2,678 3.29% 1,236 46.16% 1,442 1.77% LAP 26,501 804 3.03% 354 43.99% 450 1.70% HL 11,804 16

  29. Slide 29: 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

  30. Slide 30: Business Overview

    Business Overview 30

  31. Slide 31: Vehicle Finance

    Vehicle Finance

  32. Slide 32: 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 29% in Disbursements 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

  33. Slide 33: Sector outlook – Vehicle Finance business (1/3)

    Sector outlook – Vehicle Finance business (1/3) Sector Outlook Chola’s Position ▪ The Light commercial vehicle segment had a growth ▪ We will continue our focus in this segment in line of 6% in Q3 FY’24 & 4% as of YTD Dec’23 which is an with rural demand and industry growth. all-time high sales for

  34. Slide 34: Sector outlook – Vehicle Finance business (2/3)

    Sector outlook – Vehicle Finance business (2/3) Sector Outlook Chola’s Position ▪ The Passenger vehicle (Car & MUV) segment had a ▪ We will continue to focus in this segment in line growth of 8% in Q3 FY’24 and 7% as of YTD Dec’23 with market trends especially retail customers. with an all-time high

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

    Sector outlook – Vehicle Finance business (3/3) Sector Outlook Chola’s Position ▪ The Construction Equipment segment had a growth ▪ Our exposure in this segment is around 7% at a of 36% in Q3 FY’24 and 27% as of YTD Dec’23. This is portfolio level. We will continue to build a quality an all-time hig

  36. Slide 36: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales Chola 4 year Chola YoY growth rate -25% (in Units) Chola 4 year (in Units) CAGR (0%) Chola YoY growth rate -2% CAGR 13% Industry 4 year CAGR (5%) Industry YoY growth 59576 rate -2% 170052 52862 50490 46679 45747 CAGR @ 5%

  37. Slide 37: Auto Industry Outlook

    Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) Chola 4 year Chola YoY growth rate -5% Chola 4 year (in Units) Chola YoY growth rate 18% CAGR 42% CAGR 26% 117435 1508855 CAGR @ 10% CAGR @ 10% 72918 75808 1014125 897983 936880 51137 761336 40765 Q3 FY'21

  38. Slide 38: 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

  39. Slide 39: 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

  40. Slide 40: 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 Haveli & Daman and & Daman and MP Diu AP MP Diu AP 0.05% Karnataka Maharashtra 0.04% Maharashtra Karnataka 5% 6% 5% Guja

  41. Slide 41: 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

  42. Slide 42: 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% 627 613 9% Medium Yield Low Yield * 10,446 653 1,053 640 584 17% 16% 15% 687 1,853 17% 560 1,860 18% 2,211 1,936

  43. Slide 43: 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 4,878 21% 21% 21% 21% 20% Medium Yield Low Yield 4,742 15,872 3,990 15,583 4,126 1

  44. Slide 44: 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

  45. Slide 45: 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

  46. Slide 46: Vehicle Finance - Asset Ratios

    Vehicle Finance - Asset Ratios Net Income Margin (%) Expense Ratio (%) 3.3% 3.4% 3.3% 8.9% 3.3% 3.2% 8.5% 8.5% 3.1% 3.1% 8.1% 7.6% 7.8% 7.5% 2.8% 7.2% 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 Loan Losses &

  47. Slide 47: Profit and Loss Statement - Vehicle Finance (Managed)

    Profit and Loss Statement - Vehicle Finance (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-o-Q3 Y-o-Y Disbursements 8,562 11,301 8,502 11,731 10,446 12,354 18% 27,509 35,385 29% Closing Assets - Managed 55,376 71,065 57,606 7

  48. Slide 48: Profit and Loss Statement - Vehicle Finance (On Book)

    Profit and Loss Statement - Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-o-Q3 Y-o-Y Disbursements 8,562 11,301 8,502 11,731 10,446 12,354 18% 27,509 35,385 29% Closing Assets (On B/S) 54,829 70,918 57,189 75

  49. Slide 49: Loan Against Property

    CO eee ets Loan Against Property

  50. Slide 50: 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% in Disbursements 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

  51. Slide 51: Loan Against Property: Industry outlook

    Loan Against Property: Industry outlook Sector Outlook Chola’s Position • CRISIL estimates the LAP segment to experience growth at a • Chola’s LAP team is currently focusing on increasing its rate of 13-15% for FY24. Similarly, strong growth is market share backed by consistent disbursement anticipa

  52. Slide 52: 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

  53. Slide 53: 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 53

  54. Slide 54: Loan Against Property – Asset Ratios

    Loan Against Property – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 5.7% 5.6% 5.4% 5.3% 5.4% 5.6% 5.5% 5.5% 1.8% 1.9% 1.7% 1.5% 1.4% 1.4% 1.4% 1.2% 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 Loan L

  55. Slide 55: Profit and Loss Statement - Loan Against Property (Managed)

    Profit and Loss Statement - Loan Against Property (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-o-Q3 Y-o-Y Disbursements 2,036 2,679 2,246 3,192 2,255 3,409 51% 6,537 9,281 42% Closing Assets - Managed 17,675 22,866 18,843 2

  56. Slide 56: Profit and Loss Statement - Loan Against Property (On Book)

    Profit and Loss Statement - Loan Against Property (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-o-Q3 Y-o-Y Disbursements 2,036 2,679 2,246 3,192 2,255 3,409 51% 6,537 9,281 42% Closing Assets (On B/S) 16,257 21,836 17,525 23,

  57. Slide 57: Home Loans

    Home Loans

  58. Slide 58: 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% in Disbursements 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

  59. Slide 59: 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

  60. Slide 60: 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

  61. Slide 61: 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 61

  62. Slide 62: Home Loans – Asset Ratios

    Home Loans – Asset Ratios Net Income Margin (%) Expenses Ratio (%) 9.2% 4.0% 4.1% 4.0% 3.9% 8.4% 8.2% 8.4% 7.9% 8.0% 8.0% 7.7% 3.4% 2.7% 2.7% 2.1% 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 Loan Losses & Pro

  63. Slide 63: Profit and Loss Statement - Home Loans (Managed)

    Profit and Loss Statement - Home Loans (Managed) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-o-Q3 Y-o-Y Disbursements 611 1,454 743 1,575 1,072 1,587 48% 2,425 4,615 90% Closing Assets - Managed 5,938 9,528 6,454 10,801 7,278 12,049

  64. Slide 64: Profit and Loss Statement - Home Loans (On Book)

    Profit and Loss Statement - Home Loans (On Book) ₹ Cr Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-o-Q3 Y-o-Y Disbursements 611 1,454 743 1,575 1,072 1,587 48% 2,425 4,615 90% Closing Assets (On B/S) 5,438 9,115 5,976 10,409 6,822 11,674

  65. Slide 65: Funding Profile

    ih onda (CCT Corres tana

  66. Slide 66: 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

  67. Slide 67: 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

  68. Slide 68: 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

  69. Slide 69: 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

  70. Slide 70: Consolidated Financials

    Consolidated Financials 70

  71. Slide 71: Consolidated Profit & Loss

    Consolidated Profit & Loss (₹Cr) Growth % Growth % Particulars Q1 FY23 Q1 FY24 Q2 FY23 Q2 FY24 Q3 FY23 Q3 FY24 YTD Dec22 YTD Dec23 (YTD) Q3-o-Q3 Y-o-Y Income 2,796 4,171 3,067 4,695 3,408 5,055 48% 9,271 13,921 50% Expenses 2,032 3,215 2,305 3,630 2,482 3,898 57% 6,819 10,743 58% PBT 764 956 762 1,0

  72. Slide 72: Environmental Social Governance

    Environmental Social Governance 72

  73. Slide 73: Consecutively awarded for last 4 years

    Consecutively awarded for last 4 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. FY 23 • CRISIL ESG rating – S

  74. Slide 74: Risk Management

    Risk Management 74

  75. Slide 75: Risk Governance Structure

    Risk Governance Structure ▪ Oversee the entire risk management process Board of Directors ▪ Formed in 2007-08 ▪ Meet four times in a year Risk Management ▪ Periodic review of framework, Committee process, key risk movement and other initiatives Executive Director ▪ Review the risk management process

  76. Slide 76: Key Functions of Risk Management Division

    Key Functions of Risk Management Division • Identify key risks in each function/business • Assess the risks in terms of probability of occurrence and their impact • Identify mitigation/ risk controls put in place by respective process champions • Identify key risk indicators to measure and monitor r

  77. Slide 77: ERM as Value Centre in Business Processes

    ERM as Value Centre in Business Processes • ERM works with business teams on the overall customer life cycle management Active portfolio Identifying segments & management and channels risk profiles prioritization for collection efforts Underwriting models to Customer retention optimally onboard risk

  78. Slide 78: ERM as Value Centre in Corporate Processes

    ERM as Value Centre in Corporate Processes • Periodic engagement with internal audit team to incorporate key observations on process failures identified by IA team which will be considered as part of risk review process. ERM also gives risk-based inputs to internal audit team to plan and prioritize

  79. Slide 79: Information Technology

    Information Technology 79

  80. Slide 80: Technology Updates

    Technology Updates Technology Infrastructure Digital Engagement & Application Platform Provide resilient & scalable environment Deliver seamless digital experience for all • Optimize deployment architecture and rollout of scalable • Open market rollout of direct to customer digital App with hybrid c

  81. Slide 81: 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

  82. Slide 82: 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

  83. Slide 83: Chola Crest, Guindy, Chennai contact details

    Chola Crest, C54-55 & Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai - 600032. | Tel.: 044 4090 7172 | Fax: 044 4090 6464 | Email : customercare@chola.murugappa.com | Website : www.cholamandalam.com

Cholamandalam Investment and Finance Company — Investor Presentation (December 2023) on 6ix