Cholamandalam Investment posts 26% rise in Q2 net at ₹963 crore

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Murugappa Group’s NBFC (Non-Banking Financial Company), Cholamandalam Investment & Finance Co Ltd, reported a strong double-digit growth across key metrics in the September quarter and the first half of this fiscal year. Net profit for Q2 rose 26 per cent year-on-year (y-o-y) to ₹963 crore, while the H1 net profit increased by 28 per cent to ₹1,905 crore, compared to the same period last year.

The company’s net income for Q2 surged 37 per cent y-o-y to ₹3,238 crore, up from ₹2,367 crore. For the first half of this fiscal, net income grew by 40 per cent y-o-y, reaching ₹6,271 crore, compared to ₹4,493 crore a year earlier. Disbursements in Q2 FY24 increased by 13 per cent to ₹24,314 crore (₹21,542 crore in Q2 FY23), while for the first half of FY24, disbursements saw a 17 per cent rise to ₹48,646 crore (₹41,557 crore).

In the vehicle finance segment, disbursements grew by 5 per cent to ₹12,336 crore (₹11,731 crore in Q2 FY23). The Loan Against Property (LAP) business posted a robust 35 per cent growth, with disbursements rising to ₹4,295 crore compared to ₹3,192 crore a year earlier. The home loan business saw a 16 per cent increase in disbursements, reaching ₹1,823 crore (₹1,575 crore).

In SME loans, disbursements stood at ₹1,959 crore (₹1,945 crore in Q2 FY23), while the consumer and small enterprise loans (CSEL) segment disbursed ₹3,588 crore, up from ₹2,853 crore in the same quarter last year.

The company’s gross NPA ratio improved 3.78 per cent from 4.07 per cent in the year-ago quarter, although it rose slightly from 3.62 per cent in the June 2024 quarter. Net NPA dropped to 2.48 per cent, down from 2.59 per cent a year ago but up slightly from 2.37 per cent in the previous quarter.

Assets under management (AUM) increased by 33 per cent to ₹177,426 crore as of September 2024, compared to ₹133,775 crore as of September 30, 2023. The company maintained a strong liquidity position, with a cash balance of ₹13,864 crore as of September 2024 and total available liquidity of ₹1,404 crore, including undrawn sanctioned lines.