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CHOLAMANDALAM INVESTMENT & FINANCE COMPANY LTD.

NSE : CHOLAFINBSE : 511243ISIN CODE : INE121A01024Industry : Finance - NBFCHouse : Murugappa Chettiar
BSE201.25-1.25 (-0.62 %)
PREV CLOSE ( ) 202.50
OPEN PRICE ( ) 200.90
BID PRICE (QTY) 0.00 (0)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 324230
TODAY'S LOW / HIGH ( )196.95 206.45
52 WK LOW / HIGH ( )117.4 348.85
NSE201.00-1.5 (-0.74 %)
PREV CLOSE( ) 202.50
OPEN PRICE ( ) 200.95
BID PRICE (QTY) 201.00 (525)
OFFER PRICE (QTY) 0.00 (0)
VOLUME 9877641
TODAY'S LOW / HIGH( ) 197.50 206.50
52 WK LOW / HIGH ( )117.4 349
AnalystEmailIdketan.mehrotra@narnolia.com
AnalystNameKetan Mehrotra
BSECode511243
CP1DesignationMD
CP1NameMr. Arun Alagappan
CP2DesignationExe VP & CFO
CP2NameMr. Arul Selvan
CP3DesignationSr. VP & Buss. Head
CP3NameMr. Rupinder Singh
CallDate03 Aug 2020
DescriptionChallenges continue for the company in the turbulent times on account of the lockdown however there was some improvement in business the month of June 2020 which is expected to remain going forward. Management expects Q2 and Q3 to be critical on the collection front but the company is prepared for them. Moratorium for the company stays at around 74% as most of the companies customers want to maintain cash in such volatile times. In most of the cases company has collected around 1 or 2 EMI. Total 1 plus EMI paid is 34% and part EMI paid is 16%. Moratorium has seen some outflow as well as inflows of customers. Collections during July has been equal to June but capacity utilization has been lower Management said when they declared the March result they considered the second lockdown and did adequate provisions for the COVID 19 using the stress test scenario 20% Customers agreements in Stage 1 with tenure of 24 to 36 months have been offered the moratorium while the 38% customers’ agreements in Stage 2 and 39% in Stage 3 have been offered the moratorium. Management feels here the chances of LGD are low. Net interest margin during the quarter was affected on account of the High Cash the company is carrying. Management expects to carry liquidity around Rs 6000 Cr throughout the year. Company did not have any gain on assignment during the quarter. Management feel 30-35% PCR is adequate but have increase to around 42% due to COVID-19 going forward would decide how the things plans out but are currently comfortable with it. Disbursement is used vehicle finance include both refinance and new customers coming in. Strong disbursements in the tractor front were on account of management focus on the segment around the country and the market segment gain in the tractor was on because of one of the OEM. Yield in the vehicle finance book has fallen as there have been some write off the old overdue in the segment. Some of the OPEX reduction during the quarter was the one time but most of the Opex reduction can be carried down. GNPA for Vehicle finance is 2.41%, LAP segment is 6.9% and Home loan is around 3.3%. Company has not done any top up loan during the quarter.
SubjectQ1FY21 EARNING CONFERENCE CALL

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