Chola Finance Q12017 Results Analysis

Cholamandalam Investment and Finance the financing company reported its performance for Jun 2016.

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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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Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.

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