Q3 result highlights.
Revenue up by 25% YoY and 4% QoQ
PAT up by 28% YoY and 27% QoQ (Note: Q2 PAT was low due to deferred tax payment)
Another good show by Chola during auto slow down.
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Very good numbers
Just curious How long chola can grow like this ?
Can it grow like this for next 5 years
Has management projected any long term growth in any of their presentations
Chola has strong and diversified customer franchise. Most of the customers are repeat customers and the brand has strong trust factor associated with it.
It has been steady compounder since many years now. They donât give long term guidance, but in my view it can grow its PAT for 20-25% CAGR for next few years.
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Q3 Results link
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Cholamandalam Financial Holdings, the parent company of Cholamandalam Investment & Finance, seems a lot more attractive in terms of valuations. It is also into general insurance and health insurance. Is it better to play the Cholamandalam Investment & Finance growth story through Cholamandalam Financial Holdings? Please share your thoughts
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I have been tracking Chola for a few years now and itâs a decent company with good tieups with most of the large dealerships. Currently they seem to do well in the used vehicle markets and CV space. I think this is a good medium term candidate for next 3-5 years with decent growth. On auto slowdown I think we need to wait until May/June based on bs6 to see whether we have some traction or its a prolonged down cycle. Other than that I see company is well managed so far and management seems competent enough.
Dis 7% of my portfolio.
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Feedback about vehicle financing from NBFC Guy :
Used vehicle financing is continuous to be good.
New vehicle financing: presently the business of new commercial vehicle financing is down by 60 to 70%. Most NBFCs, banks are not funding new vehicles which are BS4. After buying the commercial vehicle owner has to make changes like building body,tank etc as per the intended usage and get it registered accordingly before 31st March. In case the owner is unable to complete the whole process he canât use it. In this scenario itâs very risky to do new commercial vehicle financing.
Some companies have already come out with BS6 models but customers are not ready to buy by paying more. Most of them want to wait for another 6 months to see how the new vehicle is doing. Expect only new vehicle sales to pick up only from Q3 fy21 festive season.
May be we should speak to more dealers to confirm this as generally lot of prebuying is expected before March and to know about time taken to do modification for commercial vehicles.
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@spartan My friend who works for an NBFC told the same. Huge discounts are being provided for BSIV but getting it registered after body building is difficult. Heavy vehicle market is in passive mode for now.
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HmmmmâŚ
"Chola partners with Maruti Suzuki for vehicle finance.
The âBuy Now Pay Laterâ offer is aimed to provide customers with easy financing options.
A two-month deferment of EMI will bring advantage to car customers who currently are under resource crunch amidst the COVID-19 pandemic."
https://www.bseindia.com/xml-data/corpfiling/AttachLive/2b10f412-0c90-449b-a252-eedbbed25a95.pdf
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Chola
Management Commentary
Freight rates are keeping up with diesel prices and seeing capacity utilization improve in
certain areas. Expect freight availability and utilization both to improve even further in
November i.e. post harvesting season. Disbursements to existing customers have reduced as many were under moratorium.
Company shall restructure loans of those customers whose cash flows are taking time to rebound such as bus operators and MSME; expect ~1% of AUM to get restructured. Collection efficiency was better this quarter with LAP segment doing better. Management may reverse CoVID related provisions by Mar20 depending on the situation while macro related provisions to the tune of INR 8bn shall continue to stay.
Latest Q3 segment wise breakdown, vehicle finance/LAP have shown a drop in results. Unallocable segment revenue is 73cr and Unallocable segment result is 84cr (16cr last Yr). What could be explanation behind this? Unallocable assets are 8459cr.
Hey everyone, I just noticed that on August 31st, 2021 shares have been pledged by some Key personnel and promoters, the pledge is just 0.09% (yes mind you the number is very small) of the entire promoter shareholding. Is this anything to be concerned about?
29 Oct. please check corp announcements in BSE or any app like moneycontrol. This forum can better be used for more information on business updates or insights rather than such straight forward queries.
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Is this report available in public domain?