Cholamandalam Financial Holdings (CHOLAHLDNG) Q4 13/14 earnings summary

Executive summary

• Standalone FY14 revenue edged down to ₹3,609.42 Cr from ₹3,642.25 Cr; PAT fell to ₹94.07 Cr from ₹103.96 Cr, while EBITDA rose 4% to ₹348.67 Cr.

• Consolidated revenue increased to ₹8,834.49 Cr from ₹7,751.64 Cr; net profit rose to ₹311.31 Cr from ₹288.51 Cr.

Financial highlights

• Standalone PBT before exceptional items was ₹141.16 Cr versus ₹151.02 Cr; finance costs increased to ₹123.27 Cr from ₹104.16 Cr.

• Standalone operating cash flow was ₹278.68 Cr versus ₹300.90 Cr; capital expenditure, including CWIP and advances, was ₹168.90 Cr.

• Consolidated EBITDA reached ₹1,072.61 Cr versus ₹913.97 Cr; PBT was ₹789.37 Cr versus ₹673.94 Cr.

• Consolidated loan-loss provisions and other charges rose to ₹283.39 Cr from ₹123.34 Cr, including ₹86.43 Cr of loss assets written off and ₹153.30 Cr net loss on repossessed assets.

Outlook and guidance

• Management expected an automobile-sector turnaround in FY15 and anticipated benefits from a recovery in vehicle demand.

• Large Diameter Tubes commercial production was expected in Q2 FY15, broadening exposure to off-highway, infrastructure and general engineering markets.

• Bicycle priorities included filling product gaps, expanding distribution, targeted advertising, capacity improvement and cost reduction.

• Engineering planned to build exports and value-added offerings through product development, cost reduction and operational efficiencies.