On 2 November 2023: Cholamandalam Investment and Finance Company Limited (BSE, NSE: CHOLAFIN) announced its Q2 2023-24 financial results, delivering a quarter where AUM was up as well as a rise in disbursements for the financial company.
Table of Content
Consolidated Result Takeaways
Here are the overall consolidated highlights in Q2 results:
- The NBFC’s disbursements in Q2 were at ₹21,542 Cr (up by 47%).
- The total AUM stood at ₹1,33,775 Cr, a rise of 46% YoY. AUM in Q2 FY 22-23 was at ₹91,841 Cr.
- Net Income Margin was up at ₹2,367 Cr up 39% YoY.
- For Q2, PAT was at ₹762 Cr, a rise of 35%.
Additional Read: Q2 Results Dashboard
Result Insights
The Cholamandalam Investment and Finance Company Ltd. had some insights to share about the Q2 result:
- In the current fiscal year, NBFCs have emerged as top contributors to credit.
- A robust demand from end-user segments related to the auto sector has boosted vehicle financing for the Chennai-based NBFC. Vehicle disbursements were at ₹11,731 Cr in Q2 FY 23-24, compared with ₹8,502 in Q2 FY 22-23.
- The Loan Against Property business has witnessed a robust revival in Q2, higher than that disbursed in the same quarter of the previous fiscal year.
- Home loans have recorded above-average growth in Q2.
- In Q2, the finance company launched a QIP issue of equity shares (₹2,000 Cr) and mandatorily convertible debentures (₹20,000 Cr). Both these received a positive response with the equity component getting oversubscribed 7 times.
- At the close of Q2, GNPA as per norms of RBI, are down to 4.07%. NNPA has also gone down to 2.59%.
Also Read: Cholaman.Inv.&Fn Share Price
Financial Results
Here are the standalone financial results of Q2 in a nutshell (all figures in ₹ Cr, except where indicated by %):
| Metrics | Q2 FY 2023-24 | Q2 FY 2022-23 | YoY Growth % |
| AUM | 1,33,775 | 91,841 | 46% |
| Profit Before Tax | 1,021 | 758 | 35% |
| Profit After Tax | 762 | 563 | 35% |
| Net Income | 2,367 | 1,697 | 39% |
About Cholamandalam Investment and Finance Company Ltd.
The Chennai-based Cholamandalam Investment and Finance Company Limited (Chola), commenced operations in 1978. At the time, it functioned as the financial arm of the popular Murugappa Group. The company started its business mainly as a finance company to lend capital to businesses with equipment requirements. As it operates today, the company has become one of the leading comprehensive financial service providers in South India. It is actively engaged in disbursing home loans, vehicle finance, SME loans, loans against property, consumer & small enterprises loans (CSEL), secured business personal loans (SBPL), and a wide range of other financial services. The company has built a reputation of trust and integrity and has a large loyal customer base given its humble beginnings.
The company is engaged in operations from approximately 1204 branches spread over India with AUM or assets under management going above ₹1,14,795 Crore. The company has a single-minded mission: to enable customers to be exposed to a better life. Its clientele has been growing with every quarter and the key to ist success appears to be a stringent adherence to values, best practices, transparency, and ethics.
Source: https://www.cholamandalam.com/investors/financials
