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IDBI Capital Report
Cholamandalam Investment and Finance Company Ltd.'s assets under management growth picked up further to 25% YoY versus 21% YoY (Q1 FY23) led by strong growth in disbursements (up 68% YoY). Management guided for 20-22% AUM growth for FY23.
Asset quality improved with gross stage-III at 3.84% versus 4.16% led by better collection efficiency.
Also, gross non-performing asset (as per Reserve Bank of India norms) stood at 5.8% versus 6.3%; it remains high which needs to be watch out for.
Management overlay provisions stood at Rs 5.3 billion (0.6% of AUM) which should support credit cost going forward.
Cholamandalam Investment's net interest income grew by 18% YoY lower than AUM growth due to decline in net interest margins; pre-provisin operating profit grew by 17% YoY led by increase in operating expenses (up 28% YoY).
However, profit after tax declined by 7% YoY led by higher provisions (up 300% YoY).
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