Strong guidance for FY25; earnings beat led by lower credit costs

Company

03 May 2024 | 5 Min Read

Cholamandalam Inv. & Finance (CIFC) 4QFY24 PAT grew ~24% YoY to INR10.6b.

AUM rises ~37% YoY; opex elevated due to incentive & CSR expenses.

Management expects the fee income to continue growing in line with business growth.

Guidance for strong AUM growth and RoA expansion in FY25.

Management guided for FY25 disbursement growth of ~20-25% and AUM growth of ~25-30%.

Reiterate BUY rating on the stock with a revised TP of INR1,500.