Cholamandalam Investment and Finance Q4, PAT at ₹1,058 crore, up by 24%,

Cholamandalam Investment and Finance Company released its Q4FY24 results on April 30, 2024, after the market closed. Below are key highlights from the latest quarter and fiscal year performance of FY24

Profitability

Net Income for Q4FY24 was at ₹2,913 crore, an increase of 41% YoY which was at ₹2,060 crore in Q4FY23 . The Net Income for the financial year stood at ₹9,986 crore showcasing a growth of 38% YoY. The rise in net income was largely aided by strong growth in high margin personal and vehicle finance segments.

Profit after tax stood at ₹1,058 crore for the quarter which was up by 24% YoY. The PAT for FY24 stood at ₹3,423 crore showcasing a growth of 28% YoY.

The company's finance costs increased by 61% compared to the previous year, outpacing the growth in total income, which grew by 48%. This indicates that the company is facing higher borrowing costs that it is unable to fully pass on. The net profit margin for FY24 decreased to 18.16%, a drop of 274 basis points YoY. However, the impact of this was partially offset by the higher growth in Assets Under Management (AUM).

AUM

The total AUM stood at ₹1,53,718 crore as of March 31, 2024 compared to ₹1,12,782 crore as of March 31, 2023 showcasing a growth of 36% YoY.

Disbursements

Aggregate disbursements in Q4 FY 24 were at ₹24,784 crore as against ₹21,020 crore in Q4 FY23 with a growth of 18%. Disbursements for FY24 were at ₹88,725 crore as against ₹66,532 crore in the previous financial year, registering a growth of 33% YoY.

Segment wise breakup (disbursements)- Q4FY24

Vehicle Finance: ₹12,962 crore, 6% growth YoY. Loan Against Property: ₹4,273, 55% growth YoY. Home Loan: ₹1,747 crore, 24% growth YoY. SME business: ₹2,136 crore, 2% growth YoY. Consumer and Small Enterprise: ₹3,301 crore, 40% growth YoY. Secured Business and Personal Loan: ₹366 crore, 87% growth YoY.

Highest growth was seen in the secured business and personal loan segment on account of low base. Loan against property business which grew by 55% and home loan which grew by 24% was due to geographical expansion into Tier 3 and 4 locations. The company has delivered best-ever disbursals, collections and profitability in this quarter.

Asset Quality

There was a fall of 34 basis points QoQ in stage 3 levels representing 90+ dues. GNPA as of March 24 stood at 3.54%, a drop of 38 basis points from the previous quarter. NNPA stood at 2.32% declining by 24 basis points from the previous quarter, the threshold prescribed by RBI for the same is 6%.

Capital Adequacy

The Capital Adequacy Ratio of the company as of March 31, 2024 was at 18.57% as against the regulatory requirement of 15%. Tier-I capital was at 15.10% (higher the better) and Tier-II capital was at 3.47%.

Dividend

The Board of Directors of the company has recommended a final dividend of ₹ 0.70 per share (35%) on the equity shares of the company, subject to the approval of the members of the company at the ensuing Annual General Meeting. This is in addition to the interim dividend of ₹ 1.30 per share (65%) for the financial year 2023-24 declared by the company on 25th January 2024.

The stock closed at ₹1194 on BSE, up by 1.97% from the previous day’s close.