Cholamandalam posts strong double-digit growth in PAT, net income & disbursements in Q1

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Cholamandalam Investment & Finance Company Ltd has delivered a robust performance in the first quarter of this fiscal, showcasing strong double-digit growth in profit after tax (PAT), disbursements, and net income.

The Murugappa Group NBFC’s board announced the appointment of Ravindra Kumar Kundu, currently the executive director, as the Managing Director for five years starting October 7, 2024. Kundu has been with the company for 24 years and brings 36 years of experience in the automotive and financial services sectors.
The Chennai-headquartered company posted a 30 per cent increase in its profit after tax at ₹942 crore for the quarter that ended June 30, 2024 against  ₹726 crore in the same quarter previous year amid higher expenses at ₹1,183 crore (₹787 crore) and loan losses at ₹581 crore (₹372 crore).
Total income rose 41 per cent to ₹5,828 crore (₹4,134 crore), while net income increased 43 per cent to ₹3,033 crore (₹2,127 crore). Aggregate disbursements saw a 22 per cent rise to ₹24,332 crore, according to a statement.
In the vehicle finance business, disbursements grew 13 per cent to ₹12,766 crore in Q1 FY2024. Loan Against Property disbursements increased 45 per cent to ₹3,874 crore (₹2,679 crore). Home loan disbursements rose 22 per cent to ₹1,778 crore (₹1,454 crore).
SME loan disbursements grew 6 per cent to ₹2,160 crore, while consumer and small enterprise loans (CSEL) disbursements reached ₹3,486 crore (₹2,355 crore in Q1 FY2024). Secured business and personal loan disbursements stood at ₹268 crore (₹182 crore).
The company maintained a strong liquidity position with ₹14,324 crore in cash as of June 2024, and a total liquidity position of ₹14,767 crore (including undrawn sanctioned lines).
Gross NPA decreased to 3.62 per cent in Q1 FY2024, from 3.54 per cent in Q4 FY2023 and 4.30 per cent in Q1 FY2023, while net NPA dropped to 2.37 per cent from 2.82 per cent in Q1 FY2024.
Assets under management grew 38 per cent to ₹168,832 crore during the quarter under review (₹122,755 crore).
The board also announced the appointment of Ramkumar Ramamoorthy, former Chairman and Managing Director of Cognizant India and now Partner Catalincs, as an additional director in the capacity of an independent director for a term of 5 years from July 26, 2024 to July 25, 2029. His appointment comes at a time Cholamandalam is deepening its focus on technology.