Cholamandalam Financial Holdings Q3 PAT rises 17% YoY to Rs 249 cr

On a consolidated basis, the company's net profit rose 16.97% to Rs 248.93 crore on 2.22% rise in total income to Rs 3,727.53 crore in Q3 December 2021 over Q3 December 2020.

Profit before tax rose 19.46% to Rs 731.73 crore in Q3 December 2021 over Q3 December 2020.

Cholamandalam Investment & Finance Company (CIFCL), in which the company holds about 45.42% stake, had several positives like pent-up demand, good monsoon and uptrend in economic indicators like tax collections, power consumptions, vehicle registrations, highway toll collections and e-way bills. This has led to a sharp recovery in CIFCL's disbursements and collections during Q3 FY22.

CIFCL's PAT for the quarter ended 31 December 2021 is Rs 524 crore compared to Rs 409 crore in the corresponding quarter of the previous year, registering a growth of 28%.

Its assets under management grew by 4% to Rs 79,161 crore as at 31 December 2021 as compared to Rs 75,813 crore as at 31 December 2020.

Cholamandalam MS General Insurance Company (CMSGICL) a subsidiary in general insurance business, in which the company holds about 60% stake, registered a Gross Written Premium (GWP) of Rs 1,438 crore during the quarter ended 31 December 2021 as against Rs 1,273 crore in the corresponding quarter of the previous year, increase of 13%. PAT for the quarter ended 31 December 2021 is at Rs 16 crore as against Rs 47 crore in the corresponding quarter of the previous year. The reduction in PAT is primarily on account of COVID claims of Rs 7.40 crore and accelerated amortisation of deferred acquisition costs of Rs 109.10 crore (including an amount of Rs 27.50 crore absorbed additionally in current quarter following a reinsurance cession relating to dwellings property business) relating to long term policies pursuant to regulatory communication.

CMSGICL registered a Gross Written Premium (GWP) of Rs 3,738 crore during the nine months period ended 31 December 2021 as against Rs 3,331 Cr in the corresponding period of the previous year, increase of 12%.

Cholamandalam MS Risk Services, a joint venture company, in which the company holds 49.5% stake, registered total income of Rs 16.51 Cr for the quarter ended 31 December 2021 as against Rs 13.31 crore in the corresponding quarter of the previous year. PAT for the quarter ended 31 December 2021 is Rs 2.24 crore as against Rs 3.57 crore in the corresponding quarter of the previous year. The total income for the nine months period ended 31 December 2021 is Rs 41.02 crore as against Rs 27.84 crore in the corresponding period of the previous year.

Cholamandalam Financial Holdings (CFHL) is registered with the Reserve Bank of India as a Non-Deposit taking Systemically Important - Core Investment Company (CIC-ND-SI). The company has significant shareholding in companies viz., Cholamandalam Investment and Finance Company, Cholamandalam MS General Insurance Company and Cholamandalam MS Risk Services.

Shares of CFHL were down 1.16% at Rs 671.55 on Friday, 11 February 2022.

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