Cholamandalam Financial Holdings (CHOLAHLDNG) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated total income was ₹10,946.81 crore and profit for the year ₹1,414.83 crore, versus ₹8,909.90 crore and ₹1,126.88 crore in FY18.

• Standalone profit was ₹66.53 crore; dividend income from investments remained the primary revenue source, alongside brand-fee income.

Financial highlights

• Consolidated revenue from operations rose to ₹10,925.63 crore from ₹8,909.28 crore; PBT increased to ₹2,134.79 crore from ₹1,694.54 crore.

• Consolidated profit attributable to equity holders was ₹696.70 crore versus ₹549.91 crore; reported consolidated profit included ₹718.13 crore attributable to non-controlling interests.

• Standalone total income was ₹73.52 crore versus ₹64.67 crore, and PAT was ₹66.53 crore versus ₹59.39 crore.

• CIFCL disbursements grew 21% to ₹30,450.95 crore; PBT rose to ₹1,823.15 crore from ₹1,401.37 crore and PAT to ₹1,186.15 crore from ₹918.30 crore.

• CMSGICL gross direct premium grew 11% to ₹4,541.10 crore; PBT was ₹280.30 crore versus ₹287.65 crore. CMSRSL revenue was ₹40.82 crore versus ₹56.28 crore, with PBT of ₹4.88 crore versus ₹4.20 crore.

Outlook and guidance

• FY20 GDP growth was expected to accelerate moderately, supported by private investment, improved exports and resilient consumption; inflation was expected to soften and potentially allow another rate cut.

• Financial services were expected to rebound in FY20, with BS-VI-related vehicle purchases potentially supporting demand; motor, health and SME insurance were expected to grow strongly.

• General insurance industry growth was projected above 11%; possible El Niño conditions were identified as a risk to crop insurance.

• CMSRSL outlook was described as bright, with plans to expand its consultancy portfolio through new services.