Cholamandalam Investment & Finance Co Ltd Reports Impressive Growth

**Murugappa Group’s** Non-Banking Financial Company (**NBFC**), **Cholamandalam Investment & Finance Co Ltd**, has some exciting news to share! The company has posted remarkable double-digit growth across key financial metrics for the September quarter and the first half of this fiscal year.

Profit Surge in Q2

In the second quarter (Q2), net profit soared by an impressive 26% year-on-year, reaching **₹963 crore**. Meanwhile, the net profit for the first half of the year rocketed by 28% to **₹1,905 crore**, compared to the same period last year. Talk about a strong performance!

Rising Net Income

The company’s net income in Q2 also skyrocketed, up by 37% year-on-year, amounting to **₹3,238 crore**, a significant jump from **₹2,367 crore**. When looking at the first half of this fiscal year, net income climbed even higher, showing a remarkable 40% increase to reach **₹6,271 crore** compared to **₹4,493 crore** last year.

Disbursements on the Rise

Disbursements in Q2 FY24 increased by 13%, hitting **₹24,314 crore**, compared to **₹21,542 crore** in Q2 FY23. For the first half of FY24, disbursements also experienced a significant uplift, rising by 17% to **₹48,646 crore**, up from **₹41,557 crore** in the previous year.

Segment Breakdown

Breaking it down by segments, the vehicle finance area saw a 5% growth in disbursements, totaling **₹12,336 crore** (up from **₹11,731 crore** in Q2 FY23). The **Loan Against Property (LAP)** sector recorded an impressive 35% growth with disbursements climbing to **₹4,295 crore**, compared to **₹3,192 crore** from a year ago. Additionally, the home loan sector saw a rise of 16%, with disbursements reaching **₹1,823 crore** (up from **₹1,575 crore**).

Small and Medium Enterprises

In the realm of **SME loans**, disbursements reached **₹1,959 crore** compared to **₹1,945 crore** in Q2 FY23. Moreover, the **consumer and small enterprise loans (CSEL)** segment achieved a notable increase, disbursing **₹3,588 crore**, up from **₹2,853 crore** in the same quarter last year.

Improved NPA Ratios

Cholamandalam’s efforts to manage non-performing assets (NPAs) are paying off! The gross NPA ratio has improved to **3.78%**, down from **4.07%** in the same quarter last year, although it saw a slight rise from **3.62%** in the previous quarter. Notably, the net NPA dropped to **2.48%**, down from **2.59%** a year ago but showing a minor increase from **2.37%** last quarter.

Strong Liquidity Position

As of September 2024, the company’s assets under management (**AUM**) increased impressively by 33%, reaching **₹177,426 crore**, compared to **₹133,775 crore** as of September 30, 2023. In addition to this growth, Cholamandalam maintained a solid liquidity position with a cash balance of **₹13,864 crore** and total available liquidity of **₹1,404 crore**, including undrawn sanctioned lines.