Cholamandalam Investment Reports 26 Percent Rise in Q2 Net Profit to Rs 963 Crore on Strong Interest Income Growth

Cholamandalam Investment Reports 26 Percent Rise in Q2 Net Profit to Rs 963 Crore on Strong Interest Income Growth

Cholamandalam Investment and Finance Company, part of the Murugappa Group, posted a robust 26% increase in its net profit for the second quarter of FY25, reaching Rs 963.05 crore. This surge is largely attributed to substantial growth in interest income and a diversified lending portfolio that continues to expand. The company’s revenue from operations climbed 40% year-on-year to Rs 6,226.60 crore in the July-September period, with interest income contributing Rs 5,767.96 crore, a 37% rise over the same period last year.

The non-banking financial company (NBFC) saw a 13% year-on-year increase in aggregate disbursements, amounting to Rs 24,314 crore for Q2 FY25. Vehicle finance led the way with Rs 12,336 crore, followed by Loan Against Property (LAP) at Rs 4,295 crore, Consumer and Small Enterprise Loans at Rs 3,588 crore, Small and Medium Enterprise (SME) Loans at Rs 1,959 crore, and home loans at Rs 1,823 crore. Total assets also surged 38% year-on-year to reach Rs 1.69 lakh crore as of September 2024.

Expenses for the quarter mirrored revenue growth, with total expenditure rising 40% to Rs 4,994.17 crore, including a finance cost increase to Rs 3,055.13 crore from Rs 2,205.20 crore a year prior. Gross Stage 3 assets, representing loans overdue by more than 90 days, grew sequentially to 2.83% (Rs 4,708 crore) in September, up from 2.62% (Rs 4,123 crore) in June.

The Capital Adequacy Ratio (CAR) of Cholamandalam as of September 30, 2024, stood at 19.50%, surpassing the regulatory requirement of 15%, highlighting the company's financial stability and capital strength.

Shares of Cholamandalam Investment closed slightly lower on the NSE at Rs 1,385.30, down from the previous day’s closing.