Cholamandalam Investment Q4 Review - Core Performance Stable; Valuations Rich: Axis Securities
Indian two thousand rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Cholamandalam Investment Q4 Review - Core Performance Stable; Valuations Rich: Axis Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Axis Securities Report

Cholamandalam Investment and Finance Company Ltd. Q4 FY21 earnings performance was below our and street estimates, primarily on account of higher operating expenses and provisioning.

A higher sequential jump in staff costs (up 75%) and provisioning (up 13%) resulted in a 41% QoQ decline in profit after tax to Rs 2.43 billion.

The company has made additional Covid-19 provisions of Rs 3.5 billion.

Headline asset quality was marginally up at 3.96% versus 3.75% QoQ.

However, provision coverage ratio improved to 44.3%. Business assets under management grew 16% YoY while disbursals picked up by 43% YoY.

Click on the attachment to read the full report:

Axis Securities Cholamandalam Q4FY21 Result Update.pdf

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