Q1 results: Agile models support Shriram Transport, Chola Finance

Both were quick to adapt to a changing environment

Much to the surprise of investors, results posted by Shriram Transport Finance Corporation and Cholamandalam Investment and Finance Company (Chola Finance) exceeded expectations. 

Both managed reasonable profit growth in the June quarter (Q1) and kept a neat check on costs. Loan growth held up reasonably well, too. Shriram Transport grew its loan book by 4 per cent year-on-year (YoY) in Q1, though overall disbursement fell 8 per cent. Growth was faster for Chola Finance, which saw loans swell 23 per cent YoY in Q1.

Even if the growth rates significantly trail the past trends, what has helped the two financiers is that