Cholamandalam Investment and Finance Company Ltd, the non-banking financial company of the Rs 22,314 crore Murugappa Group, has posted an increase of 43.84 per cent in net profit for the quarter ended March 31, 2013, on a consolidated basis, at Rs 87.41 crore. The net profit during the same period of the previous financial year was Rs 60.77 crore.
Total income has shown an increase to Rs 730.69 crore during the quarter of the financial year, compared with Rs 527.33 crore in the corresponding period of the previous year, posting an increase of 38.6 per cent.
“Q4 has been a good quarter for the company, with disbursements in vehicle finance growing by 32 per cent and disbursements in home equity loans growing by 42 per cent, compared with the same period last year,” said the company announcement.
The light commercial vehicles segment, which the company is mainly focusing on, has grown at more than 20 per cent and the company has also increased around 116 branches during the financial year ended March 31, said a senior company official.
The company disbursed Rs 3,140 crore in vehicle finance during the quarter, as against Rs 2,370 crore in the same period of 2011-12 and disbursed Rs 639 crore in home equity loans as against Rs 448 crore in the fourth quarter of the previous year.
However, the gold loan disbursements were Rs 14 crore for the quarter ended March 31, 2013, as against Rs 54 crore in the corresponding period of 2011-12. Home loan disbursements were Rs 2 crore for the quarter. The company launched its corporate finance loan business during the later part of the quarter and disbursed Rs 13 crore. The aggregate disbursements of the company for the quarter was Rs 3,808 crore as against Rs 2872 crore during the fourth quarter of the last financial year.
While the company would look at progressively scaling up the Home Loan business, it would is not keen on aggressively increasing the other business at present, added that official. The home loan business would be expanded from current three-four locations to around 15 locations by the end of the current financial year.
The company, which has raised Rs 300 crore through allotting 1,05,26,315 equity shares at a price of Rs 285 a equity share (face value of Rs 10 a equity share and premium of Rs 275 a equity share) in the month of February to 21 investors constituting foreign institutional investors, mutual funds, insurance companies and private equity funds, has no further plans to raise money through equity, he said. However, the company usually raise around Rs 1,000 crore every month for various purposes including pay-off of maturities, said the official.
The company has plans to add around 60-70 more branches in the current financial year. It has around 518 branches across the country as on March 31.
