Cholamandalam Investment and Finance Company (511243) Q3 22/23 earnings summary

Executive summary

• Q3 FY23 disbursements reached ₹17,559 crore, up 68% YoY; AUM rose 31% to ₹103,789 crore, and standalone PAT increased 31% to ₹684 crore.

• Nine-month disbursements doubled to ₹45,512 crore; standalone PAT rose 24% to ₹1,813 crore and consolidated PAT rose 23% to ₹1,810 crore.

Financial highlights

• Q3 standalone total income was ₹3,375 crore, up 32% YoY; PBT was ₹921 crore, up 31%, and PAT was ₹684 crore, up 31%.

• Q3 net income was ₹1,832 crore, up 22% YoY; finance costs rose 48% to ₹1,543 crore, while loan losses fell 40% to ₹159 crore.

• Nine-month total income rose 22% to ₹9,184 crore; net income increased 21% to ₹5,169 crore and PBT rose 24% to ₹2,441 crore.

• Q3 standalone basic EPS was ₹8.32 versus ₹6.38 YoY; nine-month basic EPS was ₹22.07 versus ₹17.76.

Outlook and guidance

• FY23 commercial vehicle sales were expected to approach the pre-pandemic peak of over 1 million units, supported by fleet utilization, replacement demand and road construction activity.

• Strong festive sales, workforce returns to metro cities and a robust housing market supported demand despite high inflation and interest rates.