Cholamandalam Financial Holdings (CHOLAHLDNG) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1 FY25 revenue rose 34% YoY to ₹7,677 crore, with profit after tax up 46% YoY to ₹1,160 crore and EPS at ₹29.20, a 48% increase YoY.

• Strong growth across lending and insurance businesses, with robust disbursement and AUM expansion in key segments.

• Chola MS General Insurance GWP grew 14.3% YoY to ₹1,945 crore; PAT doubled YoY to ₹134 crore.

• Gross direct premium income for the insurance segment reached INR 1,921 crore, growing 14.2% YoY, outpacing industry growth.

• The Board approved the results on August 9, 2024, after review by the Audit Committee and statutory auditors.

Financial highlights

• Disbursements in Q1 FY25 reached ₹24,332 crore, up from ₹20,015 crore YoY; AUM grew to ₹1,68,832 crore from ₹1,53,718 crore.

• Vehicle Finance disbursements grew 13% YoY to ₹12,766 crore; AUM up 25% YoY.

• Retail health insurance grew 9% versus industry growth of 11.4%; group health volume reached INR 146 crore.

• Investment income for the insurance segment was INR 309 crore; investment portfolio corpus stood at INR 16,620 crore.

• Net worth (consolidated) stood at ₹23,326.77 crore as of June 30, 2024.

Outlook and guidance

• Double-digit growth in motor insurance is expected for the full year, with stronger performance anticipated in the second half.

• Vehicle Finance expects muted growth in LCV, positive trends in used vehicles, and healthy two-wheeler demand.

• Home loan growth expected at 12-14% for FY25, with focus on rural penetration and profitability.

• Price increases in health insurance, especially in bancassurance and retail, are planned to address higher loss ratios.

• General insurance industry remains underpenetrated, offering long-term growth potential.