Cholamandalam Financial Holdings (CHOLAHLDNG) Q4 16/17 earnings summary

Executive summary

• Manufacturing operations were demerged effective 1 Aug 2017, with an appointed date of 1 Apr 2016; the remaining focus is financial-services investments.

• FY17 consolidated revenue was ₹2,689.15 Cr and net profit ₹454.57 Cr; prior-year comparisons are not meaningful because the business perimeter changed.

Financial highlights

• Standalone revenue was ₹40.07 Cr, mainly dividend income; standalone profit before and after tax was ₹36.29 Cr.

• Consolidated profit before exceptional items and tax was ₹294.74 Cr; net profit attributable to shareholders was ₹454.57 Cr.

• FY16 consolidated results included a ₹762.42 Cr gain on disposal of a 14% stake in Cholamandalam MS General Insurance; FY17/FY16 figures also reflect different business scopes.

Outlook and guidance

• The financial-services outlook was described as positive: NBFC growth expected to remain steady, vehicle-finance markets projected to grow 6%-9%, and general insurance distribution planned to expand digitally.

• Risk-services prospects were described as bright, supported by plans to strengthen the consultancy portfolio and introduce new services.