Cholamandalam Investment & Finance Reports 21% Profit Growth in Q1

1 min read     Updated on 02 Aug 2025, 05:29 PM
scanxBy ScanX News Team
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Overview

Cholamandalam Investment and Finance Company's Q1 net profit increased by 21% to Rs 1,135.91 crore. Total income rose 26% to Rs 7,330.78 crore. Overall disbursements remained flat at Rs 24,325 crore. Vehicle Finance and Loan Against Property segments showed growth, while Home Loans and SME Business experienced declines. The company launched Gold Loan as a new vertical. Shareholders approved key resolutions at the 47th AGM, including financial statements adoption, dividend declarations, and increased borrowing powers.

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*this image is generated using AI for illustrative purposes only.

Cholamandalam Investment and Finance Company, a part of the Murugappa Group, has reported a strong financial performance for the first quarter. The company's net profit surged by 21% to Rs 1,135.91 crore, up from Rs 942.23 crore in the same quarter of the previous year.

Financial Highlights

  • Net Profit: Rs 1,135.91 crore (21% year-on-year growth)
  • Total Income: Rs 7,330.78 crore (26% year-on-year increase)
  • Overall Disbursements: Rs 24,325 crore (remained flat)

Segment-wise Performance

The company's various business segments showed mixed results:

Segment Disbursement (Rs Crore) Growth (%)
Vehicle Finance 13,647 7.00
Loan Against Property 4,705 21.45
Home Loans 1,764 -0.79
SME Business 1,705 -21.06
Gold Loan (New) 100 N/A

Business Highlights

  • Vehicle Finance: Showed a healthy growth of 7%, reaching Rs 13,647 crore in disbursements.
  • Loan Against Property: Witnessed significant growth of 21.45%, with disbursements of Rs 4,705 crore.
  • Home Loans: Experienced a marginal decline to Rs 1,764 crore from Rs 1,778 crore in the previous year.
  • SME Business: Saw a decrease in disbursements to Rs 1,705 crore from Rs 2,160 crore, attributed to the company's decision to slow down certain low Return on Total Asset products.
  • Gold Loan: Launched as a new business vertical during the quarter, with initial disbursements of Rs 100 crore.

Operational Reach

Cholamandalam Investment and Finance Company continues to maintain a strong presence across India with 2,481 touchpoints, ensuring wide accessibility for its financial services.

Recent Corporate Actions

The company recently held its 47th Annual General Meeting (AGM), where shareholders approved several key resolutions:

  1. Adoption of standalone and consolidated financial statements for the year ended March 31.
  2. Confirmation of interim dividend and declaration of final dividend.
  3. Re-appointment of Mr. M A M Arunachalam as a director.
  4. Appointment of M/s. BP & Associates as Secretarial Auditors for a five-year term.
  5. Approval for increasing the company's borrowing powers.

These resolutions were passed with overwhelming majority, demonstrating strong shareholder support for the company's governance and future plans.

Cholamandalam Investment and Finance Company's robust performance in Q1, coupled with its strategic initiatives and shareholder approvals, positions the company well for continued growth in the financial services sector.

Historical Stock Returns for Cholamandalam Investment

1 Day5 Days1 Month6 Months1 Year5 Years
-0.43%-1.29%-3.21%+5.60%+8.82%+617.07%
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Cholamandalam Investment and Finance Reports 21% PAT Growth in Q1

1 min read     Updated on 01 Aug 2025, 02:08 AM
scanxBy ScanX News Team
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Overview

Cholamandalam Investment and Finance Company Limited (CIFCL) reported robust Q1 financial results. Total AUM increased by 23% to ₹2,07,663.00 crore, Net Income rose 27% to ₹3,864.00 crore, and PAT grew 21% to ₹1,136.00 crore. Vehicle Finance and LAP segments showed growth, while SME and CSEL disbursements declined. The company maintained a strong liquidity position and Capital Adequacy Ratio of 19.96%. However, Stage 3 assets increased to 3.16%, and GNPA rose to 4.29%.

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*this image is generated using AI for illustrative purposes only.

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.

Historical Stock Returns for Cholamandalam Investment

1 Day5 Days1 Month6 Months1 Year5 Years
-0.43%-1.29%-3.21%+5.60%+8.82%+617.07%
Cholamandalam Investment
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