Cholamandal Financial Holdings Ltd reports earnings for Q1FY21

The Board of Directors of Cholamandal Financial Holdings Ltd (CFHL) today approved the unaudited financial results for the quarter ended June 30, 2020.

Consolidated Results

For the quarter ended June 30, 2020, the Company achieved consolidated Profit after tax of Rs. 589 Cr. as against Rs.330 Cr. in the corresponding quarter of the previous year. Total income for the quarter was Rs.3,234 Cr. as against Rs.3,123 Cr. in the corresponding quarter of the previous year.

Cholamandalam Investment & Finance Company Ltd, in which the Company holds 45.50% stake, disbursed Rs. 3,589 Cr. for the quarter ended June 30, 2020 compared to Rs. 8,572 Cr. in the corresponding quarter of the previous year registering a decline of 58%. Disbursements started to pick up after lockdown relaxation post May 15th.

Profit after tax for the quarter ended was at Rs. 431 Cr. compared to Rs.314 Cr. in the corresponding quarter of the previous year, registering an increase of 37%. Assets under management grew by 13% to Rs. 70,826 Cr as compared to Rs.62,827 Cr as at June 30, 2019.

Cholamandalam MS General Insurance Company Ltd., a subsidiary in general insurance business, in which the Company holds about 60% stake, registered a Gross Written Premium (GWP) of Rs. 883 Cr. during the quarter ended June 30, 2020 as against Rs. 1,199 Cr. in the corresponding quarter of the previous year. Profit after tax for the quarter ended June 30, 2020 was at Rs. 164 Cr. as against Rs. 22 Cr. in the corresponding quarter of the previous year. Increase is Profit after tax for the quarter is primarily on account of significant reduction in insurance claims cost and marketing expenses.

Cholamandalam MS Risk Services Ltd., a Joint Venture Company, in which the Company holds 49.5% stake, registered a revenue of Rs. 5.28 Cr. for the quarter ended June 30, 2020 as against Rs. 8.67 Cr. in the corresponding quarter of the previous year. Loss after tax for the quarter ended was Rs. 3.58 Cr. as against Rs. 0.92 Cr. in the corresponding quarter of the previous year.

Standalone Results

The Loss after tax for the quarter ended June 30, 2020 was at Rs. 3.36 Cr. as against Profit after tax of Rs.2.56 Cr. in the corresponding quarter of the previous year. Loss for the current quarter is on account of interest cost recognised on borrowing made for equity investment in subsidiary company.

Shares of Tube Investments of India Ltd was last trading in BSE at Rs. 362.10 as compared to the previous close of Rs. 337.60. The total number of shares traded during the day was 10068 and the deliverable quantity was 6616 shares.

The stock hit an intraday high of Rs. 371.35 and intraday low of Rs. 332.90.

Source : Equity Bulls

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