KRChoksey: Cholamandalam Investments Earnings Aided By Higher AUM, Strong Rural Presence  
A local woman signs a register to receive a loan during a meeting (Photographer Adeel Halim/Bloomberg)

KRChoksey: Cholamandalam Investments Earnings Aided By Higher AUM, Strong Rural Presence  

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

KRChoksey Report

Cholamandalam Investment and Finance Company Ltd.’s net interest income increased 13.8% YoY to Rs 940 crore in Q1 FY21 (up 3.3% QoQ) while pre-provision operating profit grew 7.5% YoY/up 3.8% QoQ to Rs 637 crore, led by increase in asset under management (AUM).

Provisions stood at Rs 56 crore in Q1 FY21 versus Rs 557 crore in Q4 FY20 (down approximately 90% QoQ) and Rs 110 crore in Q1 FY20 (down approximately 49% YoY).

Net profit increased 37% YoY to Rs 431 crore in Q1 FY21, while net profit in Q4 FY20 was Rs 43 crore due to Covid-19 related one-time provisioning.

Aggregate disbursements declined 58% YoY to Rs 3,589 crore in Q1 FY21. However, disbursements started to pick up after lockdown relaxation post May 15, 2020.

AUM grew by 10.4% YoY at Rs 63,501 crore in Q1 FY21 as compared to Rs 57,494 crore in Q1 FY20.

Return on assets for the quarter was at 3.6% as against 3.4% in Q1 FY20

Click on the attachment to read the full report:

KRChoksey Cholamandalam Investment Finance Q1FY21 Result Update.pdf

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