Cholamandalam Investment Q3 Results Review - Strong AUM Growth; NIMs Stable: IDBI Capital

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .IDBI Capital Report.Cholamandalam Investment and Finance Company Ltd.’s assets under management growth picked up further to 31% YoY versus 25% YoY (Q2 FY23) led by strong growth in disbursements (up 38% YoY). Management revised guidance to 27-30% AUM growth for FY23. Asset quality improved with gross stage-III at 3.51% versus 3.84% led by better collection efficiency. Also, gross non-performing asset (as per Reserve Bank of India norms) stood at 5.4% versus 5.8%; it remains high. Management overlay provisions stood at Rs 5 billion (0.5% of AUM) which should support credit cost going forward. Net interest income grew by 8% QoQ led by stable net interest margins; pre-provision operating profit grew by 4% QoQ led by increase in operating expenses (up 14% QoQ). However, profit after tax grew by 22% QoQ led by decline in provisions (down 43% QoQ)..Click on the attachment to read the full report:.Cholamandalam Investment Shares Rally As Q3 Profit Beats Estimates.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cholamandalam Investment Q3 Results Review - Strong AUM Growth; NIMs Stable: IDBI Capital

Net interest income grew by 8% QoQ led by stable net interest margins.

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