Cholamandalam Investment and Finance Company (511243) Q1 21/22 earnings summary

Executive summary

• Q1 FY22 disbursements rose 1% YoY to ₹3,635 crore and AUM grew 7% to ₹75,763 crore; PAT fell 24% to ₹327 crore amid second-wave disruptions and higher loan losses.

• PPOP increased 56% YoY to ₹993 crore, while Stage 3 assets rose to 6.79% from 3.96% at March 2021.

Financial highlights

• Standalone total income was ₹2,467 crore vs ₹2,114 crore YoY; PBT was ₹441 crore vs ₹581 crore, and PAT was ₹327 crore vs ₹431 crore.

• Net income margin increased 39% YoY to ₹1,363 crore; finance costs declined 2% to ₹1,104 crore, while total expenses rose 7% to ₹371 crore.

• Consolidated PAT was ₹328.55 crore vs ₹431.30 crore YoY; consolidated EPS was ₹4.01 basic and ₹4.00 diluted vs ₹5.26 for both in Q1 FY21.

Outlook and guidance

• Management expects gradual revival through FY22 as restrictions normalize, with account rollbacks following the easing of state lockdowns.

• Management expects loan losses to return to normal levels in subsequent quarters, citing the recovery after lockdowns lifted in Q3 and Q4 FY21; Q1 comparisons are not considered comparable due to differing moratorium and pandemic conditions.