Cholamandalam Financial spurts on stellar Q1 outcome

Cholamandalam Financial Holdings hit an upper circuit of 10% to Rs 371.35 after the company's consolidated net profit surged 78.61% to Rs 589.46 crore on 3.56% rise in total income to Rs 3,233.85 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) soared 55.80% to Rs 794.25 crore in Q1 June 2020 as against Rs 509.78 crore in Q1 June 2019. Current tax expense for the quarter jumped 20.88% to Rs 239.80 crore as against Rs 198.37 crore in Q1 June 2019. The Q1 result was declared during trading hours today, 12 August 2020.

Cholamandalam Investment & Finance Company, in which Cholamandalam Financial Holdings owns 45.50% stake, disbursed Rs 3,589 crore for the quarter ended 30 June 2020 compared to Rs 8,572 crore in the corresponding quarter of the previous year, registering a decline of 58% Y-o-Y (year-on-year). Disbursements started to pick up after lockdown relaxation post 15 May 2020 . Assets under Management (AUM) grew 13% to Rs 70,826 crore as compared to Rs 62,827 crore as at 30 June 2019.

Cholamandalam MS General Insurance Company, a subsidiary in general insurance business, in which the company holds about 60% stake, registered a Gross Written Premium (GWP) of Rs 883 crore during the quarter ended 30 June 2020 as against Rs 1,199 crore in the corresponding quarter of the previous year. Profit after tax for the quarter ended 30 June 2020 was at Rs 164 crore as against Rs 22 crore in the corresponding quarter of the previous year. Increase in profit after tax for the quarter is primarily on account of significant reduction in insurance claims cost and marketing expenses.

Cholamandalam MS Risk Services, a joint venture (JV) company, in which Cholamandalam Financial Holdings holds 49.5% stake, registered a revenue of Rs 5.28 crore for the quarter ended 30 June 2020 as against Rs 8.67 crore in the corresponding quarter of the previous year. Loss after tax for the quarter ended was Rs 3.58 crore as against Rs 0.92 crore in the corresponding quarter of the previous year.

Cholamandalam Investment and Finance Company is a diversified non-banking finance company (NBFC). The company provides vehicle finance, home loans and corporate mortgage loans, small and medium enterprises (SME) loans, investment advisory services, stock broking and a range of other financial services.

Shares of Cholamandalam Financial Holdings on BSE. The stock traded in the range of Rs 332.90 to Rs 371.35 so far.

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