Cholamandalam Investment and Finance Company (511243) Q2 24/25 earnings summary

Executive summary

• Disbursements for Q2 FY25 reached INR 24,314 crore, up 13% year-on-year; H1 disbursements at INR 48,646 crore, up 17% year-on-year.

• Total AUM grew 33% year-on-year to INR 1,77,426 crore.

• Consolidated total income for Q2 FY25 was ₹6,322.34 crore, up from ₹4,695.16 crore in Q2 FY24, reflecting strong year-over-year growth.

• Net income for Q2 was INR 3,238 crore, up 37% year-on-year; H1 net income at INR 6,271 crore, up 40%.

• PAT for Q2 stood at INR 963 crore, up 26% year-on-year; consolidated net profit after tax for Q2 FY25 was ₹967.80 crore.

Financial highlights

• Vehicle finance disbursements in Q2 were INR 12,336 crore, up 5% year-on-year; H1 at INR 25,102 crore, up 9%.

• LAP disbursements in Q2 were INR 4,295 crore, up 35%; H1 at INR 8,170 crore, up 39%.

• Home loan disbursements in Q2 were INR 1,823 crore, up 16%; H1 at INR 3,601 crore, up 19%.

• SME disbursements in Q2 were INR 1,959 crore, up 1%; H1 at INR 4,119 crore, up 3%.

• CSEL disbursements in Q2 were INR 3,588 crore, up 26%; H1 at INR 7,075 crore, up 36%.

Outlook and guidance

• Disbursement growth moderated to 13% for the quarter, with AUM growth expected to normalize closer to 25% guidance for the full year.

• Credit cost guidance maintained at 1.3% for the full year, with improvement expected in Q4.

• ROA expected to improve to 3.2–3.3% for the full year, with medium-term guidance of 3.5% over the cycle.

• No concerns flagged regarding unsecured portfolio credit costs.

• Capital adequacy ratio at 19.5% as of September 30, 2024, with liquidity coverage ratio at 202%.