Cholamandalam Investment and Finance Company (511243) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 disbursements grew 22% YoY to INR 24,332 crore; AUM rose 38% YoY to INR 168,832 crore.

• Net income for the quarter was INR 3,033 crore, up 43% YoY; PAT stood at INR 947 crore, up 30% YoY.

• Net income margin improved to 7.6% from 7.3% YoY; PBT up 31% YoY to INR 1,268 crore.

• Return on equity at 18.9% vs 19.9% YoY; GNPA reduced to 2.62% from 3.06%.

• Leadership transition announced: Ravindra Kundu to become MD effective October 7.

Financial highlights

• Consolidated income for Q1 FY25 was INR 5,857 crore, up 40% YoY; PAT up 33% YoY to INR 947 crore.

• Vehicle finance disbursements grew 13% YoY to INR 12,766 crore; LAP disbursements up 45% to INR 3,874 crore.

• Home Loans disbursed INR 1,778 crore (up 22%), SME INR 2,160 crore (up 6%), CSEL INR 3,486 crore (up 48%), SBPL INR 268 crore (up 48%).

• Write-offs for the quarter were INR 322 crore, compared to INR 204 crore in Q1 FY24; net credit losses increased 56% YoY to INR 581 crore.

• Basic EPS for the quarter was INR 11.27, compared to INR 8.64 in Q1 FY24.

Outlook and guidance

• Growth guidance maintained at 25%-30% AUM growth and 20%-25% disbursement growth for FY25.

• Credit cost expected to remain in the 1%-1.2% range at the company level over the next few years.

• OPEX expected to gradually decline as new businesses mature, with ROA improvement anticipated over the next two to three years.

• Home Loan business to focus on consolidation and productivity in H1, with volume ramp-up expected in H2.

• Asset cover above 100% for listed NCDs, indicating strong asset quality and prudent risk management.