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Earnings Call Transcript

Cholamandalam Investment & Finance Company Earnings Call Transcript: Key Takeaways

Management maintains a 20-23% growth guidance despite global macro uncertainties. A precautionary 200 Cr overlay was added to mitigate potential fuel and supply chain risks, showcasing a conservative but confident posture.

Guidance and delivery
Management target Revenue 23.0% FY27
Highlights
Revenue growthAUM grew 21% YoY; disbursements up 25% to 32,913 Cr.
MarginsNIM improved by 40 bps YoY as cost of funds softened.
Demand visibilityStrong demand in commercial and passenger vehicles in early Q1.
Management confidenceConfident but cautious; added a 200 Cr precautionary buffer.

Growth

AUM grew 21% YoY to 2.42 lakh Cr, driven by strong 26% growth in vehicle finance.

Outlook

Projecting 20-23% AUM growth for FY27 with Net Credit Costs targeted at 1.5% and 3.5% Pre-tax ROA.

Risks

Precautionary overlay for fuel price volatility and global supply chain disruptions; higher credit costs in CSEL segment.

Last quarter's promises, checked

Delivered

  • Guided 20-23% growth → delivered 21% AUM growth (= BEAT)
  • Guided ROA 3.5% (pre-tax) → delivered 4.1% (before overlay) (= BEAT)
  • Guided 1.6% credit cost → delivered 1.4% (before overlay) (= BEAT)

Partly delivered

  • Guided home loan growth → delivered mild moderation due to elections (= PARTIAL)
Source

Earnings Call Transcript filed with BSE, NSE: CHOLAFIN. Summary written with AI assistance from the document.

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Cholamandalam Investment & Finance Company Ltd: key numbers

Share price
₹1,662.70
Market cap
₹1,40,179 Cr
Revenue (annual)
₹31,073 Cr
Net profit (annual)
₹5,233 Cr
P/E (TTM)
24.4×Sector 22.0×
Promoter holding
49.22%-0.03% QoQ
FII holding
24.46%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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