Cholamandalam Financial Holdings reports Q1 consolidated PAT at Rs 357 cr

The city-based Murugappa Group company had registered consolidated PAT at Rs 589 crore during corresponding quarter previous year. 

Total income for the quarter under review stood at Rs 3,591 crore as against Rs 3,234 crore registered in corresponding quarter previous year, witnessing a 11 per cent increase, a press release said here. 

Cholamandalam Investment and Finance Company Ltd, in which CFHL holds 45.46 per cent stake, was adversely impacted by the second wave of the COVID-19 pandemic leading to a shift in the focus from business to well-being of the affected individuals (borrowers and staff). 

''This resulted in a setback in performance in Q1 on the disbursements and collections front'',the company said. 

Cholamandalam Investment and Finance Company Ltd reported PAT at Rs 327 crore during the quarter ending June 30, 2021 as compared to Rs 431 crore recorded in the same quarter of previous year. 

The decline in PAT was ''due to increase in impairment provisions'', it said. 

Cholamandalam MS General Insurance Company Ltd, a subsidiary in the general insurance business, registered a Gross Written Premium (GWP) of Rs 997 crore during the quarter under review as against Rs 883 crore in corresponding quarter previous year. 

The company had registered a profit after tax for the quarter ending June 30, 2021 at Rs 29 crore as against Rs 164 crore in the corresponding quarter previous year. 

''The reduction in the PAT was primarily on account of COVID-19 claims ofRs 147 crore and accelerated amortisation of deferred acquisition costs of Rs 61 crore relating to long term policies pursuant to regulatory communication'', it said. 

Cholamandalam MS Risk Services Ltd, a joint venture company, had registered a PAT for the quarter ending June 30, 2021 at Rs 40 lakh as against a net loss at Rs 3.59 crore during the corresponding quarter previous year. 

The total income during the quarter grew to Rs 10.97 crore from Rs 5.28 crore recorded in the corresponding quarter previous year, the release said.