Cholamandalam Investment and Finance Company Ltd reports consolidated PAT of Rs. 434.64 crore in Q2FY21

Cholamandalam Investment and Finance Company Ltd has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.2457.89 crores during the period ended September 30, 2020 as compared to Rs.2125.61 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.434.64 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.431.30 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.5.30 for the period ended September 30, 2020 as compared to Rs.5.26 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 2457.89 crs	₹ 2125.61 crs	15.63%
Net Profit	₹ 434.64 crs	₹ 431.30 crs	0.77%
EPS	₹ 5.30	₹ 5.26	0.76%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.2457.89 crores during the period ended September 30, 2020 as compared to Rs.2212.48 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.434.64 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.306.94 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.5.30 for the period ended September 30, 2020 as compared to Rs.3.92 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 2457.89 crs	₹ 2212.48 crs	11.09%
Net Profit	₹ 434.64 crs	₹ 306.94 crs	41.6%
EPS	₹ 5.30	₹ 3.92	35.2%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.4583.50 crores during the 6 months period ended September 30, 2020 as compared to Rs.4257.76 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.865.94 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.622.11 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.10.56 for the 6 months period ended September 30, 2020 as compared to Rs.7.95 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 4583.50 crs	₹ 4257.76 crs	7.65%
Net Profit	₹ 865.94 crs	₹ 622.11 crs	39.19%
EPS	₹ 10.56	₹7.95	32.83%

Commenting on the results, Arun Alagappan, Managing Director, stated "The quarter gone by was critical not just for us, but for the entire banking and financial services industry. With the 6-month moratorium ending in August'20, the focus was to scale up on-field collection efforts and the Company has been able to make considerable improvement in the last 2 months. While the broader economy is still recovering, the Company has witnessed a better than expected disbursement numbers in Q2 FY21, with the trend seeming to be on a positive trajectory in the coming quarters. The pent-up demand and the economic activities associated with the festive season are expected to boost business sentiments and improve disbursements and collections across the businesses. Looking ahead, while business as usual post Covid-19 is still sometime away, the past couple of months have given us enough reasons to be cautiously optimistic about H2 FY21.

Looking beyond the financials, one thing that needs highlighting is that Chola's investments in tech, digital and analytics, have significantly helped the company during the challenging H1 of FY21: the forecasting and predictive analytics capabilities are today enabling a better prediction of the delinquent pools supported by focused collection efforts, the digital sourcing channels are being integrated with the OEM platforms and alternate channels, the customer requirements are getting served seamlessly with a capability for higher log-ins and conversions. These outcomes have strengthened the conviction to keep augmenting the tech, digital, analytics capabilities and leverage the same as a source of competitive advantage in future."

Shares of Cholamandalam Investment and Finance Company Ltd was last trading in BSE at Rs.242.1 as compared to the previous close of Rs. 248.5. The total number of shares traded during the day was 60207 in over 1252 trades.

The stock hit an intraday high of Rs. 251 and intraday low of 241.1. The net turnover during the day was Rs. 14741980.

Source : Equity Bulls

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