Q2 2025 Cholamandalam Financial Holdings Ltd Earnings Call Transcript
Key Points
- Cholamandalam Financial Holdings Ltd reported a gross direct premium growth of 9.2% in Q2, outperforming the industry growth of 1.7%.
- The company achieved a half-year top-line growth rate of 11.5%, compared to the industry growth of 6.7%.
- The claims ratio improved by 1.2% to 72.6% from 73.8% in the previous year.
- Investment income for the quarter was robust at ₹342 crores, contributing positively to the financial results.
- The company is progressing on digital initiatives, including migrating its private car portfolio to a cloud architecture, enhancing operational efficiency.
- The company's expenses of management increased to ₹32.18 in Q2 from ₹29.7 in the corresponding quarter, indicating rising operational costs.
- The operating expense ratio increased from 36.3% last year to 37.4%, impacting the combined ratio negatively.
- The motor own damage (OD) loss ratios are higher than historical levels, particularly in the commercial vehicle segment.
- The company faced challenges due to NatCat events, such as floods in Andhra, Telangana, and Surat, impacting financial performance.
- There is uncertainty regarding the regulatory changes affecting long-term policy accounting, which could impact future financial reporting and expense management.
Ladies and Gentlemen, you had been connected to Cholamandalam Financial Holdings Ltd conference call will begin shortly, please stay connected.
Ladies and Gentlemen, good day and welcome to the Q2 FY25 earnings conference call of Cholamandalam Financial Holdings Ltd hosted by Dam Capital Advisors.
(Operator Instruction)
Please note that this conference is being recorded. I now hand the conference over to Mr. Rajesh Tekadiwala from Dam Capital Advisors. Thank you and over to you, sir.
Thank you. Good evening. All. Welcome to Q2 FY25 earnings call of Cholamandalam Financial Holdings Ltd from the management. We have Mr. Sridharan Rangarajan as a Non-Executive Director, Cholamandalam Financial Holdings Limited, Mr. N Ganesh Manager & Chief Financial Officer, Cholamandalam Financial Holdings Ltd, Mr. V Suryanarayanan, Managing director, Cholamandalam Financial Holdings, MS General Insurance Company Limited. Mr. S Venugopalan Srinivasan, Chief Financial Officer, Cholamandalam
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