CHOLAMANDALAM IN & FIN CO

Cholamandalam Investment and Finance Company Limited reported strong growth in its Q1 FY27 earnings, with aggregate disbursements reaching INR29,612 crores, a 22% increase year-on-year. The company's assets under management (AUM) grew 23% to INR2,54,392 crores, driven by robust performance across all major business segments. The vehicle finance sector saw a 21% rise in disbursements, while the MSME portfolio grew 6% and consumer segment disbursements surged 52%. Management noted improvements in net interest margins and credit costs, with a return on assets (ROA) of 3.7% and return on equity (ROE) of 21.2%. The capital adequacy ratio stood at 19.81%, providing a solid foundation for future growth. Despite some concerns regarding asset quality, management expressed confidence in maintaining growth momentum and managing credit costs effectively. The company also highlighted its ongoing branch expansion strategy, particularly in the gold loan segment, aiming to enhance market penetration.

Management emphasized strong growth and positive performance across various business segments.