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Cholamandalam Witnesses 49% Growth in Net Profits, Disbursements Increase to 4,561 crore : Result Analysis


Cholamandalam Investment and Finance the financing company reported its performance for Jun 2016.
Chola’s aggregate disbursements for the quarter stood at Rs. 4,561 Cr as against Rs. 3,508 Cr.
Vehicle Finance business disbursement stood at Rs. 3326 crore accounting a growth of 29% while the Home Equity business disbursement stoof at Rs. 991 crore witnessing a growth of 19%.

Result Analysis: Cholamandalam Investment & Finance

  • Total Income from Operations increased 12.5% to Rs. 1,114.8 crore.
  • Profit After tax increased a massive 48.9% to Rs. 255.75 crore.
  • EPS increased 41.3% to Rs. 10.7 per share.

Even after such improvement in the profits of the company, the stock closed just 1% at Rs. 1,092.35/- clearly showing that not all part of the results have been accounted by the market yet. Stock to definitely watch out for on Monday opening.

Other notable points were:

  • Capital adequacy ratio (CAR) of the company was at 18.73% as against the regulatory requirement of 15%
  • Subsidiaries profits increased from Rs. 1.25 crore to Rs. 2.05 crore.
  • Net Income Margin (NIM) remained flat at 8.4%.
  • Net Non Performing Assets stood at 2.1%
  • Net Credit Losses as a % of average assets reduced to 1.2% from 1.8%

Chola Finance Q12017 Results Analysis
Disclosure: Analyst or Family do not hold the stock
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