CHOLAMANDALAM INVESTMENT AND FINANCECOMPANY LIMITED (CIFCL) UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30th SEPTEMBER 2023 

Key Financial Results(Q2 and H1 FY 23-24): 

• Disbursements for the quarterwas ₹ 21,542 Cr (Up by 47%) and for the half year ₹ 41,557 Cr (Up by 49% YoY) 

• Total AUM at ₹ 1,33,775 Cr (Up by 46% YoY) 
• Net Income for the quarter was ₹ 2,367 Cr (Up 39% YoY) and forthe half year ₹ 4,493 Cr (Up 35% YoY) 

• PAT for the quarter was ₹ 762 Cr (Up by 35%) and for the half year ₹ 1,489 Cr (Up by 32% YoY) 

Chennai, November2nd, 2023 (GNI): The Board of Directors of CIFCL today approved the unaudited financial results for the quarter and half year ended 30th September 2023. 

Highlights: 

Growth in Disbursements and AUM for Chola was robust in Q2, due to all round growth in demand. 

• Pickup in replacement demandfrom end user segments in the auto sector supportedgrowth for Vehicle Finance. 
• LoanAgainst Property businesswitnessed a healthyrevival due to growth in demand from SME segments 
• Homeloans continued to registerabove average growth due to revivalin earnings of Self employednon-professionals. 
• Thenew segments of SME, CSEL and SBPL also continuedto register growth though on a smallerbase. 

In Q2, CIFCL launched a composite QIP issue of equity shares (Rs 2,000 crores at a price of Rs 1180 per share) and compulsorily convertible debentures (Rs 2,000 crores at a face value of Rs 100000), overall aggregating to Rs 4,000 crores. The funds from the investors were received in the first week of October 23 and the allotment has been since completed on 5^th October 2023. 

Performance Highlights: Rs in Cr. 

Particulars	Q2 FY 23	Q2 FY 24	Growth (Y-o-Y)	YTD Sep-22	YTD Sep-23	Growth (Y-o-Y)
Disbursements AUM	14,623 91,841	21,542 1,33,775	47% 46%	27,953 91,841	41,557 1,33,775	49% 46%
Total Income Finance Cost	3,038 -1,340	4,572 -2,205	51% 65%	5,809 -2,471	8,706 -4,212	50% 70%
Net Income	1,697	2,367	39%	3,337	4,493	35%
Total Expenses Loan Losses	-661 -278	-946 -400	43% 44%	-1,241 -577	-1,733 -772	40% 34%
Profit Before Tax	758	1,021	35%	1,520	1,988	31%
Profit After Tax	563	762	35%	1,129	1,489	32%

• Aggregate disbursements in Q2 FY 24 were at ₹ 21,542 Cr as against ₹ 14,623 Cr in Q2 FY 23 with agrowth of 47%. Disbursements in H1 FY 24 were at ₹ 41,557 Cr as against ₹ 27,953 Cr registering a growth of 49% Y-o-Y. 
• Vehicle Finance (VF) disbursements were at ₹ 11,731 Cr in Q2 FY 24 as against₹ 8,502 Cr in Q2 FY23, registering a growth of 38%. Disbursements in H1 FY 24, were at ₹ 23,032 Cr as against ₹ 17,063 Cr in theprevious year, reporting a growth of 35% Y-o-Y. 
• Loan Against Property (LAP) business disbursed ₹ 3,192 Cr in Q2 FY 24, as against ₹ 2,246 Cr in Q2 FY23, with a growth rate of 42%. The Disbursements in H1 FY 24 were at ₹ 5,872 Cr as against ₹ 4,282 Cr in the previous year, registering a growth of 37% Y-o-Y. 
• Home Loan (Affordable HL and Affordable LAP) business disbursed ₹ 1,575 Cr in Q2 FY 24, as against 

₹ 743 Cr in Q2 FY23 registering a growth of 112%. The Disbursements in H2 FY 23 were at ₹ 3,029 

Cr as against ₹ 1,354 Cr in the previous year, registering a growth of 124% Y-o-Y. 

• Small and Medium Enterprises Loan (SME) business disbursed ₹ 1,945 Cr in Q2 FY 24, registering32% growth over ₹ 1,473 Cr in Q2 FY23. The disbursements in H1 FY24 were at ₹ 3,990 Cr, registering 59% growth over ₹ 2,503 Cr in H1 FY 23. 
• Consumer and Small Enterprise Loans(CSEL) disbursed ₹ 2,853 Cr in Q2 FY 24, as against₹ 1,579 Cr in Q2 FY23 registering a growth of 81%. The disbursements in H1 FY24 were at ₹ 5,207 Cr, registering 98% growth over ₹ 2,633 Cr in H1 FY 23. 
• Secured Business and PersonalLoan (SBPL) disbursed₹ 246 Cr and ₹ 428 Cr in Q2 and H1 respectively for FY 24. 
• Assets under management as of 30^th September 2023, stood at ₹ 133,775 Cr as comparedto ₹ 

91,841 Cr as of 30^th September 2022, clocking a growth of 46% Y-O-Y. 

• PBT Growth in Q2 was at 35% and for H1 was at 31% as compared to overall asset growth of 46%(YoY). 
• PBT-ROA for Q2 FY 24was at 3.2% and for the half year was at 3.3%. 
• ROE for H1 FY 24 was at 19.8 % as against 18.3% in the previous year. 
• The Company continues to hold a strong liquidityposition with ₹ 11034 Cr as cash balance as at the end of Sep 2023 (including Rs 1500 cr each investedin Gsec / TBill shown under investments), with a total liquidityposition of ₹ 13569 Cr (including undrawn sanctioned lines). The ALM is comfortable with no negative cumulative mismatches across all time buckets. 
• Consolidated Profit Before Tax (PBT) for Q2 FY 24 was at ₹ 1,065 Cr as against ₹ 762 Cr in Q2 FY 23 registering a growth of 40%. For H1 FY 24 the consolidated profit was at ₹2,021 Cr as against₹1,526 Cr in H1 FY 23 with a growth of 32%. 

Asset Quality: Stage 3 asset level has reduced to 2.96% as of September 23 from 3.06% as of end June 23. GNPA % as per RBI norms reducedto 4.07% as of September 23 as against4.30% in June 23. NNPA as per RBI norms has also dropped to 2.59% as of September 23 against 2.82% in June 23. NNPA is below the threshold of 6% prescribed by RBIas the threshold for PCA. 

The details of the stagewise assets and provisions are given in the Annexure. 

Capital Adequacy: The Capital Adequacy Ratio (CAR) of the company as of 30^th September 2023, was at 16.62% as against the regulatory requirement of 15%. Tier-I Capital was at 14.66% and Tier-II Capital was at 1.96%. Post the     Capital raise, the Capital Adequacy ratio is above 20%, effective 5^th Oct 23. 

Annexure  Stage wise ECL Summary 

Stage wise Summary – Sep 23                                  Stage wise Summary – Jun 23 Rs in Cr. 

Particulars	Jun-22	Sep-22	Dec-22	Mar-23	Jun-23	Sep-23
Gross Assets – Stage 1 & 2	78,461	84,498	92,526	1,03,856	1,12,185	1,21,860
Gross Assets – Stage 3	3,408	3,375	3,367	3,222