homeearnings NewsCholamandalam Investment targets AUM growth of 20 25%, looks to diversify in home loans segments
Cholamandalam Investment targets AUM growth of 20-25%, looks to diversify in home loans segments
The company has diversified to reduce its dependence on vehicle financing. This diversification strategy is expected to provide the company with a more stable source of revenue.
Cholamandalam Investment & Finance has been growing steadily over the years. In an interview with CNBC-TV18, the President & CFO, Arul Selvan Dinesh highlighted that the company's assets under management (AUM) growth should be in the range of 20-25 percent.
“AUM growth should be in the range of around 20-25 percent because the base is larger now,” he said.
Furthermore, he added that new businesses would be 15 percent of the overall AUM over a period of time.
This indicates that the company is looking at diversifying its portfolio to achieve sustained growth in the future.
Dinesh noted that the new businesses would see robust growth due to the base effect. Moreover, he stated that vehicle finance would be the largest growing segment, in absolute numbers.
Cholamandalam Investment & Finance is also expanding its reach in the loan against property (LAP) and home loans segments.
“Vehicle finance, in an absolute terms, will have the largest growth. The LAP and home loans are areas where we are now spreading our wings in other parts of the country,” he added.
Also Read | Cholamandalam Investment shares jump to 52-week high on strong loan disbursals in the March quarter
The company has diversified to reduce its dependence on vehicle financing. This diversification strategy is expected to provide the company with a more stable source of revenue.
“The strategy we have adopted is to have multiple products so that we could sustain the overall growth irrespective of cycles in different product segments,” he said.
The financial services arm of diversified conglomerate Murugappa Group, on Wednesday, May 3, reported a 24.5 percent year-on-year jump in net profit at Rs 855.3 crore for the fourth quarter that ended March 31, 2023. In the corresponding quarter last year, the company posted a net profit of Rs 687 crore. CNBC-TV18 Polls had predicted a profit of Rs 722.6 crore for the quarter under review.
The stock was up more than 14 percent in the last week and gained more than 21 percent in the past month.
For more details, watch the accompanying video
(Edited by : Anshul)
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