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Cholamandalam Investment & Finance Company Ltd.

BSE: 511243 Sector: Financials
NSE: CHOLAFIN ISIN Code: INE121A01024
BSE 00:00 | 29 May 141.70 6.70
(4.96%)
OPEN

132.00

HIGH

143.15

LOW

131.80

NSE 00:00 | 29 May 141.70 6.60
(4.89%)
OPEN

132.25

HIGH

143.20

LOW

131.15

OPEN 132.00
PREVIOUS CLOSE 135.00
VOLUME 467708
52-Week high 348.85
52-Week low 117.40
P/E 8.92
Mkt Cap.(Rs cr) 11,614
Buy Price 140.00
Buy Qty 10.00
Sell Price 141.70
Sell Qty 101.00
OPEN 132.00
CLOSE 135.00
VOLUME 467708
52-Week high 348.85
52-Week low 117.40
P/E 8.92
Mkt Cap.(Rs cr) 11,614
Buy Price 140.00
Buy Qty 10.00
Sell Price 141.70
Sell Qty 101.00

Cholamandalam Investment & Finance Company Ltd. (CHOLAFIN) - Chairman Speech

Company chairman speech

Dear Shareholders

The Financial Year (FY 18 - 19) started off very well with strong Gross DomesticProduct and growth numbers driven by healthy demand across sectors during first half of FY19. During the second half of FY 19 stress in the financial system became apparent withindustry facing liquidity constraints due to restrictive supply of market funds and wasalso impacted by auto and real estate sectors slow down. However your company did notface any negative impact supported by existing strong relationships with banks andfinancial institutions that enabled us to procure sufficient funds to disburse.

The Profit after Tax for the year was Rs. 1186 Crores a growth of 29%. Our AssetUnder Management (AUM) grew by 32% and disbursements grew by 21%. Our AUM stood at Rs.57560 Crores with a post - tax Return on Total Asset at 2.4% and Return on Equity at20.9%. The Company continued to strengthen its asset quality and reduced its Non -performing assets (Gross Stage 3) to 2.7% from 3.4% last year. The company alsotransitioned from IndianRsGenerally Accepted Accounting Principles to Indian AccountingStandard (Ind AS) during this year. Therefore financial results for the year are as perInd AS. Consequently for comparison purposes the company has reinstated previous yearfigures as per Ind AS as well.

During second half of FY 19 Non - Banking Financial Companies faced liquidity concernsarising out of tight market conditions. Your company had traditionally adopted aconservative Asset Liability Management policy ensuring that there are no negativemismatches in any of the time buckets in its structural liquidity statement which ensuredthe company was completely insulated from the liquidity tightness in the market. Thecompany shifted its stance in long term borrowings moving from market borrowings to bankborrowings. To further strengthen this position the company maintained a high level ofliquid assets to ensure meeting its maturities.

Further in FY 19 your company started to embed a suite of digital and analytics basedcapabilities within our three businesses. There are three key focus areas which thecompany has identified in this regard - advanced analytics end to end digitization andpartnerships expansions. Advanced analytics will enable data driven decision making acrossthe value chain through pre - approved loans automated underwriting models cross sellanalytics early warning systems etc. End to end digitization will improve overallcustomer experience through paperless and automated processes while reducing our operatingexpenses. Partnership expansion will help us achieve scale and offer compelling productsand terms to customers.

With strong macro - economic fundamentals inflation under control Reserve Bank ofIndia's (RBI) continued support to boost liquidity and possible advancement in vehiclepurchases due to Bharat Stage - VI implementation next year the company expects theindustry to bounce back in the FY 20. Your company is committed to sustain the growthlevels with superior asset quality.

I would like to take this opportunity to thank all our employees for their sustainedcontribution. Further I would like to thank the Board and RBI for their guidance andsupport. I would also like to thank our shareholders bankers and business partners fortheir continued support for our company over the years. We will continue to strengthen ourcore and deliver strong value for all our stakeholders.

Best Wishes

M.M. Murugappan