Yahoo Finance

• Disbursements: INR24,314 crores for Q2, up 13%; INR48,646 crores for H1, up 17%.

• Total AUM: INR1,77,426 crores, up 33% year on year.

• Net Income: INR3,238 crores for Q2, up 37%; INR6,271 crores for H1, up 40%.

• PAT: INR963 crores for Q2, up 26%; INR1,905 crores for H1, up 28%.

• Vehicle Finance Disbursements: INR12,336 crores for Q2, growth of 5%; INR25,102 crores for H1, growth of 9%.

• Loan Against Property Disbursements: INR4,295 crores for Q2, growth of 35%; INR8,017 crores for H1, growth of 39%.

• Home Loans Disbursements: INR1,823 crores for Q2, growth of 16%; INR3,601 crores for H1, growth of 19%.

• SME Business Disbursements: INR1,959 crores for Q2, growth of 1%; INR4,119 crores for H1, growth of 3%.

• CSEL Disbursements: INR3,588 crores for Q2, growth of 26%; INR7,075 crores for H1, growth of 36%.

• Secured Business and Personal Loans Disbursements: INR312 crores for Q2, growth of 27%; INR580 crores for H1, growth of 36%.

• PBT Growth: 27% for Q2; 29% for H1.

• PBT ROA: 3% for Q2; 3.1% for H1.

• ROE: 18.24% for Q2; 18.55% for H1.

• Liquidity Position: INR13,864 crores cash balance at end of September.

• Consolidated PBT: INR1,304 crores for Q2, growth of 22%; INR2,579 crores for H1, growth of 28%.

• Asset Quality - Stage 3 Levels: Increased to 2.83% as of September '24.

• GNPA: Increased to 3.78% as of September '24.

• Capital Adequacy: 19.5% as of September 30, 2024.

• Warning! GuruFocus has detected 5 Warning Signs with BOM:511243.

Release Date: October 28, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cholamandalam Investment and Finance Co Ltd (BOM:511243) reported a 33% year-on-year increase in total Assets Under Management (AUM), reaching INR1,77,426 crores.

• The company's net income for the quarter rose by 37% year-on-year to INR3,238 crores, and by 40% for the half-year to INR6,271 crores.

• The loan against property business saw a significant growth of 35% in disbursements for Q2, and 39% for the half-year.

• The company maintains a strong liquidity position with a cash balance of INR13,864 crores at the end of September.

• Cholamandalam's capital adequacy ratio stands at 19.5%, well above the regulatory requirement of 15%.

Negative Points

• Asset quality showed some deterioration with stage three levels increasing to 2.83% as of September 2024 from 2.62% in June 2024.

• Gross Non-Performing Assets (GNPA) increased to 3.78% as of September 2024, up from 3.62% in June 2024.

• The company's credit cost guidance indicates a potential challenge in maintaining lower levels, with expectations to reduce from 1.5% to 1.3% by year-end.

• There is a noted increase in operating expenses due to a substantial addition of 7,000 employees, impacting the cost structure.

• The vehicle finance segment experienced a slowdown, attributed to lower truck utilization and economic factors affecting demand.