Cholamandalam Investment Q4 Review – Core Performance Stable; Valuations Rich: Axis Securities

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Cholamandalam Investment and Finance Company Ltd. Q4 FY21 earnings performance was below our and street estimates, primarily on account of higher operating expenses and provisioning.

A higher sequential jump in staff costs (up 75%) and provisioning (up 13%) resulted in a 41% QoQ decline in profit after tax to Rs 2.43 billion.

The company has made additional Covid-19 provisions of Rs 3.5 billion.

Headline asset quality was marginally up at 3.96% versus 3.75% QoQ.

However, provision coverage ratio improved to 44.3%. Business assets under management grew 16% YoY while disbursals picked up by 43% YoY.

Click on the attachment to read the full report:

Axis Securities Cholamandalam Q4FY21 Result Update.pdf


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