Cholamandalam Investment & Finance Company Ltd’s Q3FY18 standalone net profit rises 53.95% yoy to Rs250.2cr : Beats Estimates

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Cholamandalam Investment and Finance Company (CIFC) revenue has improved by 18.6% yoy to Rs1404.3cr. Its NII came at Rs814.7cr as against Rs619.1cr, which has improved by 31.6% yoy. Its net profit was above estimates, which came at Rs250.2cr against Rs163.4cr. Its NIM has improved by 120 bps yoy to 9.6% during the quarter. Its overall GNPA for the quarter came at 3.7% against 4.46%, which has declined by 76 bps qoq. Its NNPA for the quarter came at 2.34% against 2.89% which has declined by 55 bps qoq.
  • Aggregate disbursements for the quarter were at Rs6,761cr as against Rs4,373cr in Q3FY17, registering a growth of 55% yoy.
  • Vehicle finance business disbursed Rs5,607cr as against Rs3,490cr in Q3FY17 clocking a growth of 61% yoy.
  • HCV and LCV continued to show strong growth, complemented by used vehicles.
  • Home equity business disbursed Rs799cr as against Rs619cr in Q3FY17, registering a growth of 29% yoy.
  • Assets under management grew by 20% at Rs40,056cr as compared to corresponding period of the last financial year, which stood at Rs33,381cr.
  • The Capital Adequacy Ratio (CAR) of the company as on December 31, 2017, was at 18.52% (Tier I – 13.8% and Tier II ‐4.7%) as against the regulatory requirement of 15%.
  • Cholamandalam to pay Rs4.5/share interim dividend.

Technical View: 

Cholamandalam Investment & Finance Company Ltd is currently trading at Rs1,284.25, down by 27.65 points or 2.11% from its previous closing of Rs1,311.90 on the BSE. The scrip opened at Rs1,313.10 and has touched a high and low of Rs1,324.35 and Rs1,280.05 respectively. So far 2,36,302 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.