5 Minutes Read
Cholamandalam Investment eyes AUM growth of up to 25% for FY25
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
Listen to the Article (6 Minutes)
Summary
Cholamandalam Investment and Finance reported a 24% rise in net profit to ₹1,058 crore in the quarter ended March 2024 from ₹852 crore a year ago.
Cholamandalam Investment and Finance Company (Chola), the financial services arm of the Murugappa group, said the company is looking to achieve an asset under management (AUM) growth of 20-25% in FY25.
While speaking to CNBC-TV18, Arul Selvan, President and Chief Financial Officer (CFO) of the company outlined the company’s initiatives aimed at driving asset growth.
He noted a rise in operating expenses (opex), a trend expected to persist in the future.
Acknowledging the positive momentum in the company’s operations, he stressed on the importance of expanding the business into new geographic regions to sustain growth.
However, he cautioned that the pursuit of growth necessitates prudent portfolio management, with a focus on replacing low-yielding assets to optimise returns.
Moreover, Selvan emphasised the company’s commitment to preserving net interest margins (NIMs) at 7.8% for FY25.
He attributed the success in managing funding costs to effective securitisation negotiations.
On Wednesday (May 1), Cholamandalam Investment and Finance reported a 24% rise in net profit to ₹1,058 crore in the quarter ended March 2024 from ₹852 crore a year ago.
Total loan disbursements increased 18% year-on-year during the quarter to ₹24,784 crore in March 2024 from ₹21,020 crore a year ago.
Vehicle finance, constituting the largest segment, witnessed a steady 6% increase in disbursements, while loan against property (LAP) and consumer and small enterprise loans (CSEL) experienced growth of 55% and 40%, respectively.
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter
Daily Newsletter
