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Cholamandalam Investment Q2 PAT skid 7% YoY to Rs 563 cr

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Capital Market
Last Updated : Nov 02 2022 | 12:31 PM IST

Cholamandalam Investment and Finance Company's net profit declined 7.1% to Rs 563.41 in Q2 FY23 as against Rs 606.54 crore recorded in Q2 FY22.

Total Income jumped 22.42% to Rs 3,037.78 crore in quarter ended 30 September 2022 from Rs 2481.54 crore posted in the same quarter a year ago.

Profit before tax shed 7.2% to Rs 758.06 crore in Q2 FY23 as compared to Rs 816.53 crore posted in the corresponding quarter previous year.

Aggregate disbursements in Q2 FY23 were at Rs 14,623 crore as against Rs 8,706 crore in Q2 FY22, registering a growth of 68%. Vehicle Finance (VF) disbursements surged 38% to Rs 8,502 crore in Q2 FY23 from Rs 6,161 crore in Q2 FY22.

Loan Against Property (LAP) business disbursed Rs 2,246 crore in Q2 FY23, as against Rs 1,624 crore in Q2 FY22, with a growth rate of 38%. Home Loan (Affordable HL and Affordable LAP) business disbursed Rs 743 crore in Q2 FY23, as against Rs 605 crore posted in Q2 FY22, registering growth of 23%.

Assets under management as of 30 September 2022, grew by 22.35% at Rs 91,841 crore as compared to Rs 75,063 crore as of 30 September 2021.

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The NBFC's asset quality as at end of September 2022, represented by Stage 3 assets stood at 3.84% with a provision coverage of 41.48%, as against 4.16% as at end of June 2022 with a provision coverage of 40.69%. The total provisions currently carried against the overall book is 2.73% as against the normal overall provision levels of 1.75% carried prior to the Covid-19 pandemic.

The company said it continues to hold a strong liquidity position with Rs 4,841 crore as cash balance as at end of September 22 (including Rs 1500 crore invested in Gsec shown under investments), with a total liquidity position of Rs 6,573 crore (including undrawn sanctioned lines). The asset and liability management (ALM) was comfortable with no negative cumulative mismatches across all time buckets.

The capital adequacy ratio (CAR) of the company as on 30 September 2022, was at 18.40% as against the regulatory requirement of 15%. Tier-I capital was at 15.77%.

Cholamandalam Investment and Finance Company, the financial services arm of Murugappa Group, is a diversified non-banking finance company engaged in providing vehicle finance, home loans and corporate mortgage loans, small and medium enterprises (SME) loans, investment advisory services, stock broking and a range of other financial services.

Shares of Cholamandalam Investment and Finance Company rallied 5.24% to Rs 746.55 on the BSE.

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First Published: Nov 02 2022 | 12:15 PM IST

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