Cholamandalam Financial Holdings Ltd (NSE: CHOLAFIN) is a financial services company based in India. It is a subsidiary of the Murugappa Group and was established in 1961. CFHL is primarily engaged in providing financial services such as asset management, insurance, and wealth management. It also has a significant presence in the housing finance and vehicle finance sectors. The company’s subsidiary, Cholamandalam Investment and Finance Company Limited (CIFCL), is a leading player in the Indian non-banking financial services sector, offering loans for commercial vehicles, construction equipment, and SMEs.
Cholamandalam Financial Holdings Ltd (CFHL) reported a strong performance in Q3FY23 and 9MFY23, with both total income and PAT showing a significant increase year-on-year. The company’s total income for Q3FY23 stood at Rs 4,777 crore, up 28% from the corresponding quarter of the previous year, while total income for 9MFY23 was Rs 13,095 crore, a growth of 20% from the same period last year. Similarly, PAT for Q3FY23 was Rs 720 crore, up 33% from Q3FY22, and PAT for 9MFY23 was Rs 1,909 crore, a growth of 23% from the previous year.
CFHL’s subsidiary, Cholamandalam Investment & Finance Company Ltd (CIFCL), registered a disbursement of Rs 17,559 crore in Q3FY23, a growth of 68% from the same quarter last year. The disbursements for YTD Dec-22 stood at Rs 45,512 crore, a remarkable growth of 100% from the previous year. PAT for CIFCL also showed a strong growth of 31% in Q3FY23 and 24% for 9MFY23. The assets under management of CFHL increased by 31% to Rs 1,03,789 crore as of December 31, 2022, compared to Rs 79,161 crore as of December 31, 2021. The company’s subsidiary, Cholamandalam MS General Insurance Company Ltd. (CMSGICL), registered a Gross Written Premium (GWP) of Rs 1,684 crore in Q3FY23, up 17% from the same quarter last year. CMSGICL also showed a strong PAT growth of 119% in Q3FY23 and 13% in 9MFY23.
However, Cholamandalam MS Risk Services Ltd., a joint venture company, saw a de-growth of 4% in total income for Q3FY23 compared to the same quarter last year. The PAT for the joint venture also decreased by 42% in Q3FY23 and increased by 10% for 9MFY23. In terms of standalone performance, CFHL reported a marginal increase in total income for Q3FY23 and 9MFY23, with PAT turning positive for Q3FY23 and showing a growth of 15% for 9MFY23.
Overall, CFHL’s strong performance in Q3FY23 and 9MFY23 was driven by the solid growth in CIFCL’s disbursements, strong growth in assets under management, and robust performance of CMSGICL. However, the joint venture company, Cholamandalam MS Risk Services Ltd., showed a decline in performance