Cholamandalam Financial Holdings (CHOLAHLDNG) Q4 14/15 earnings summary

Executive summary

• FY14-15 standalone net sales rose 9% to ₹3,645.78 Cr; PAT increased to ₹120.86 Cr from ₹94.07 Cr, while PBT before exceptional items declined 14% to ₹121.15 Cr.

• Consolidated revenue from operations increased to ₹9,697.56 Cr from ₹8,834.49 Cr; attributable net profit rose 36% to ₹424.36 Cr and diluted EPS reached ₹22.65.

• Expansion and new-product initiatives supported market-share gains, though ramp-up costs at the large-diameter tube plant and higher borrowing costs weighed on standalone profitability.

Financial highlights

• Standalone PBDIT was ₹356 Cr versus ₹349 Cr; PBT before exceptional items was ₹121.15 Cr versus ₹141.16 Cr, and PAT was ₹120.86 Cr versus ₹94.07 Cr.

• Standalone exceptional items included ₹61.43 Cr profit on sale of non-operating assets and ₹27.43 Cr VRS compensation; reported PBT was ₹155.15 Cr.

• Consolidated PBT was ₹1,003.28 Cr versus ₹789.37 Cr; profit before minority interest was ₹683.64 Cr versus ₹517.53 Cr, with attributable PAT of ₹424.36 Cr versus ₹311.31 Cr.

• Standalone operating cash flow was ₹167.29 Cr versus ₹278.68 Cr; capital expenditure was ₹135.80 Cr, and cash and cash equivalents ended at ₹25.73 Cr.

Outlook and guidance

• The large-diameter tube plant was expected to stabilize production in FY15-16; full capacity was targeted over the next 8–10 quarters, with revenue expected to build as volumes ramped.

• A greenfield bicycle plant in Rajpura, Punjab was under development to serve northern and eastern markets; bicycle exports had restarted, with plans to expand the business.

• The die design and manufacturing facility for TI Tsubamex was expected to be commissioned in Q3 FY15-16; new import-substitution products and efficiency programs remained priorities.