Cholamandalam Investment and Finance Company Limited (CIFCL) has reported strong financial results for the first quarter, with significant growth in key metrics despite a challenging economic environment.

Financial Highlights

• Total Assets Under Management (AUM) reached ₹2,07,663.00 crore, marking a robust 23% year-over-year increase.
• Net Income stood at ₹3,864.00 crore, up 27% compared to the same quarter last year.
• Profit After Tax (PAT) grew by 21% year-over-year to ₹1,136.00 crore.
• The company maintained a strong liquidity position with ₹16,731.00 crore in cash balance.

Business Performance

CIFCL's various business segments showed mixed performance:

• Vehicle Finance disbursements grew by 7% to ₹13,647.00 crore.
• Loan Against Property (LAP) business saw a significant 21% growth, disbursing ₹4,705.00 crore.
• Home Loans remained relatively stable at ₹1,764.00 crore.
• Small and Medium Enterprises Loan (SME) disbursements decreased to ₹1,705.00 crore due to a strategic focus on higher ROTA products.
• Consumer and Small Enterprise Loans (CSEL) disbursements declined to ₹2,046.00 crore, primarily due to the company exiting its Partnership business in this segment.
• The newly launched Gold Loan business disbursed ₹100.00 crore in its first quarter of operations.

Asset Quality and Capital Adequacy

The company reported an increase in Stage 3 assets (90+ days past due) to 3.16%, up from 2.81% at the end of the previous quarter. Gross Non-Performing Assets (GNPA) as per RBI norms rose to 4.29% from 3.97% in the previous quarter.

CIFCL maintained a strong Capital Adequacy Ratio of 19.96%, well above the regulatory requirement of 15%. Tier-I Capital stood at 14.31%, with Common Equity Tier-I Capital at 13.60%.

Management Commentary

Ravindra Kumar Kundu, Managing Director of CIFCL, stated, "Our Q1 results demonstrate the resilience of our business model and our ability to navigate challenging market conditions. While we've seen some pressure on asset quality, our robust capital position and diversified portfolio continue to provide a strong foundation for sustainable growth."

Future Outlook

Despite the increase in NPAs, CIFCL remains optimistic about its growth prospects. The company's strategic focus on high-yield products and new ventures like the Gold Loan business are expected to drive future growth. The management remains committed to maintaining a balanced approach to growth and risk management in the coming quarters.

As Cholamandalam Investment continues to expand its presence in various financial services segments, investors and analysts will be closely watching how the company manages its asset quality while pursuing growth opportunities in the evolving economic landscape.

Cholamandalam Investment and Finance Company Limited (CIFCL) has announced robust financial results for the first quarter, along with plans for a significant fundraising initiative through Non-Convertible Debentures (NCDs).

Strong Q1 Performance

CIFCL reported an impressive 21% year-over-year increase in profit after tax for Q1, reaching ₹1,136.00 crore compared to ₹942.00 crore in the same period last year. The company's total income saw a substantial rise of 26%, climbing to ₹7,331.00 crore from ₹5,828.00 crore in the previous year's Q1.

Key financial highlights for Q1 include:

• Assets Under Management (AUM) grew by 23% to ₹2,07,663.00 crore
• Total income increased by 26% to ₹7,331.00 crore

Segment-wise Performance

The company's various business segments showed mixed results:

Asset Quality and Capital Adequacy

The company reported an increase in Stage 3 assets, representing loans overdue by 90+ days, which rose to 3.16% from 2.81% quarter-on-quarter. The Gross Non-Performing Assets (GNPA) as per RBI norms increased to 4.29% from 3.97% in the previous quarter.

CIFCL maintains a strong capital position with a Capital Adequacy Ratio of 19.96%, well above the regulatory requirement.

Planned NCD Issuance

In a significant move to bolster its funding resources, CIFCL's Board of Directors has approved the issuance of secured and/or unsecured Non-Convertible Debentures (NCDs) aggregating to ₹55,000.00 crore. This issuance will be carried out in one or more tranches, providing the company with substantial capital for its operations and growth initiatives.

Liquidity Position

The company continues to maintain a robust liquidity position, with ₹16,731.00 crore in cash balances. The total liquidity position, including undrawn sanctioned lines, stands at ₹17,226.00 crore.

As Cholamandalam Investment continues to navigate the dynamic financial landscape, its robust Q1 performance and strategic fundraising plans position it well for sustained growth and market leadership in the non-banking financial sector.