Cholamandalam Financial Holdings (CHOLAHLDNG) Q4 11/12 earnings summary

Executive summary

• FY12 turnover rose 17% to ₹3,659 Cr; PBT before exceptional items increased 11% to ₹245 Cr, against prior-year exceptional land-sale income of ₹20.6 Cr.

• PAT was ₹180.09 Cr vs ₹169.66 Cr; EBITDA rose to ₹397.35 Cr from ₹355.72 Cr, while higher finance costs and input pressures constrained profit growth.

• Capacity expansion, greenfield projects and new product lines were central to the growth plan across the three operating divisions.

Financial highlights

• Net sales, excluding excise, were ₹3,458.97 Cr vs ₹2,962.58 Cr; total revenue was ₹3,520.74 Cr vs ₹2,991.89 Cr.

• EBITDA was ₹397.35 Cr vs ₹355.72 Cr; PBT before exceptional items was ₹245.10 Cr vs ₹220.70 Cr.

• Reported PBT was ₹245.10 Cr vs ₹241.30 Cr, with prior-year PBT including ₹20.60 Cr from sale of land and building; PAT was ₹180.09 Cr vs ₹169.66 Cr.

• Operating cash flow was ₹256.06 Cr vs ₹261.03 Cr; capital expenditure, including CWIP and advances, was ₹166.90 Cr vs ₹86.77 Cr.

Outlook and guidance

• Plans focus on deeper market penetration, wider customer reach and capacity expansion, including greenfield plants and new manufacturing capabilities.

• The new stainless-steel tube facility is expected to contribute higher Engineering revenue in FY13; specialty bicycles and new product markets remain growth priorities.

• Electric-scooter demand could benefit from improved infrastructure and high fuel prices; sustained government subsidies were seen as supportive for industry growth.