Q2 2025 Cholamandalam Investment and Finance Company Ltd Earnings Call Transcript
Key Points
- Cholamandalam Investment and Finance Co Ltd (BOM:511243) reported a 33% year-on-year increase in total Assets Under Management (AUM), reaching INR1,77,426 crores.
- The company's net income for the quarter rose by 37% year-on-year to INR3,238 crores, and by 40% for the half-year to INR6,271 crores.
- The loan against property business saw a significant growth of 35% in disbursements for Q2, and 39% for the half-year.
- The company maintains a strong liquidity position with a cash balance of INR13,864 crores at the end of September.
- Cholamandalam's capital adequacy ratio stands at 19.5%, well above the regulatory requirement of 15%.
- Asset quality showed some deterioration with stage three levels increasing to 2.83% as of September 2024 from 2.62% in June 2024.
- Gross Non-Performing Assets (GNPA) increased to 3.78% as of September 2024, up from 3.62% in June 2024.
- The company's credit cost guidance indicates a potential challenge in maintaining lower levels, with expectations to reduce from 1.5% to 1.3% by year-end.
- There is a noted increase in operating expenses due to a substantial addition of 7,000 employees, impacting the cost structure.
- The vehicle finance segment experienced a slowdown, attributed to lower truck utilization and economic factors affecting demand.
Ladies and gentlemen, good day. Welcome to the Cholamandalam Investment and Finance Company Limited Q2 FY25 earnings conference call hosted by Kotak Securities Limited.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nischint from Kotak Securities. Thank you, and over to you, sir.
Thank you. Good morning, everyone. Welcome to the earnings conference call of Cholamandalam Investment and Finance Company Limited. To discuss the 2Q FY25 performance of Chola and share industry and business updates, we have with us, the management of the company represented by Mr. Vellayan Subbiah, Chairman and Non-Executive Director; Mr. Ravindra Kundu, Managing Director; and Mr. Arul Selvan, President and Chief Financial Officer.
I would now like to hand over the call to Vellayan for his opening comments after which we'll take the Q&A.
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