Cholamandalam Investment Q2 net profit rises 41% on strong income growth, plans Rs 5000 crore capital raise

What happened: Cholamandalam Investment's Q2 net profit rose 41%, and its board approved raising up to Rs 5,000 crore through a qualified institutional placement over the next six to nine months. Key numbers: Net income Rs 5,037 crore, up 24%. Total income Rs 9,367 crore, up 23%. AUM Rs 2.68 lakh crore, up 25%. Disbursements Rs 35,872 crore, up 47%. Profit before tax Rs 2,188 crore, up 40%. Net interest margin flat at 7.9%. Why it matters: Management expects cost of funds to rise 10-15 basis points year on year in the coming quarter, with nearly half of borrowings at floating rates.

Cholamandalam Investment's Q2 net profit rose 41%, and its board approved raising up to Rs 5,000 crore through a qualified institutional placement over the next six to nine months.

Management expects cost of funds to rise 10-15 basis points year on year in the coming quarter, with nearly half of borrowings at floating rates.