Cholamandalam Financial Holdings’ (CFHL) consolidated net profit for Q1 FY22 contracted by 39% to ₹357 crore. The Murugappa Group firm’s revenue from operations, however, grew 11% to ₹3,591 crore.
Cholamandalam Investment & Finance Co. Ltd., in which CFHL holds about 45.46% stake, was adversely impacted by the second wave, leading to shift of focus from business to well-being of the affected persons.
This resulted in a setback in Q1 performance in the disbursements and collections, the company said in a filing. Disbursements rose by a marginal 1% as vehicle purchases were predominantly deferred. Collections were also hit, resulting in an increase in Stage 3 assets from 3.9 6% to 6.79%.
Cholamandalam MS General Insurance Co. Ltd. registered a 13% growth in Gross Written Premium of ₹997 crore. Net profit contracted to ₹29 crore from ₹164 crore primarily on account of COVID claims of ₹147 crore and accelerated amortisation of deferred acquisition costs of ₹61 crore relating to long-term policies pursuant to regulatory communication.
Cholamandalam MS Risk Services Ltd.’s total income doubled to ₹11 crore, while net profit rose to ₹40 lakh from a loss of ₹3.59 crore in the year-earlier period.
