Cholamandalam Investment soars 9% to hit a new high after strong Q4 results

The management said it had gained market share across product segments like in vehicle finance (VF), and other business units.

Shares of Cholamandalam Investment and Finance Company (CIFCL) surged 9 per cent to hit a new high of Rs 966.9 per cent in Thursday’s intra-day trade, after the company delivered best-ever disbursals, collections, and profitability in the January-March quarter (Q4 FY23)

The financial services arm of diversified conglomerate Murugappa Group reported a 24 per cent increase in net profit during the fourth quarter of 2022-23 to Rs 853 crore, on the back of healthy rise in net income. It had posted a net profit of Rs 690 crore during the same period in 2021-22 (Q4FY22).

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 30.8 percent year-on-year (YoY) to Rs 2,006.9 crore.

CIFCL’s disbursements during the quarter zoomed 65 per cent YoY to Rs 21,020 crore, up from Rs 12,718 crore. By the end of March 2023, the company’s total assets under management (AUM) was seen at Rs 1.06 trillion, up 38 per cent from Rs 76,907 crore.

The company's gross non-performing assets (NPAs), meanwhile, declined to 4.63 per cent in March 2023 as against 6.82 per cent  in March 2022, while net NPA were at 3.11 per cent in March this year, as against 4.85 per cent in the year-ago period.

That apart, the management said it had gained market share across product segments like vehicle finance (VF), and other business units. The overall passenger vehicle (PV) industry sales in FY23 rose to 3.9 crore units, an increase of 27 percent from 3.07 crore units in 2021-22.

"The Loan Against Property & SME loans witnessed strong growth in the current fiscal on the back of lower growth during the pandemic period, amidst a revival in demand from smaller businesses. Leveraging the industry growth, Chola has improved market share across Product segments. Retail AUM of NBFCs is expected to grow at a healthy 12-14 per cent in FY2024, after a strong rebound in FY2023," the company added.