Cholamandalam Investment and Finance Company reported a net profit of Rs 243.21 crore in Q4 FY21 as against net profit of Rs 42.66 crore in Q4 FY20.
Total income increased by 14.4% year-on-year (YoY) to Rs 2461.33 crore during the quarter.
Net Income Margin jumped 32% to Rs 1,342 crore in Q4 FY21 from Rs 1,016 crore in Q4 FY20. Loan losses reduced to Rs 504 crore in Q4 FY21 as against Rs 557 crore in Q4 FY20.
Aggregate disbursements in Q4 FY 21 were at Rs 8,071 crore as against Rs 5,663 crore in Q4 FY20, with a growth of 43%.
Vehicle Finance (VF) business has clocked a volume of Rs 6,153 crore in Q4 FY21 as against Rs 4,703 crore in Q4 FY20, registering growth of 31%.
Loan Against Property (LAP) business disbursed Rs 1,191 crore in Q4 FY21, as against Rs 589 crore in Q4 FY20, clocking a growth of 102%.
Home Loan (HL) business disbursed Rs 538 crore in Q4 FY21, as against Rs 271 crore in Q4 FY20 registering a growth of 99%.
The company reported 44% jump in net profit to Rs 1514.91 crore on 10% rise in total income to Rs 9519.62 crore in the year ended 31 March 2021 over the year ended 31 March 2020.
Cholamandalam Investment's asset quality as at end of March 2021, represented by Stage 3 assets stood at 3.96% with a provision coverage of 44.27%, as against 3.80% as at end of March 2020 with a provision coverage of 41.52%.
The company created additional provisions as management overlay for Rs 350 crore towards future contingencies and thereby taking the overall management overlay to Rs 1100 crore as on 31 March 2021.
The total provisions currently carried against the overall book is 3.58% as against the normal overall provision levels of 1.75% carried prior to the COVID-19 pandemic, representing two times than normal provision coverage.
The Capital Adequacy Ratio (CAR) of the company as on 31 March 2021, was at 19.07% as against the regulatory requirement of 15%.
Assets under management as at end of March 2021, grew by 14% at Rs 76,529 crore as compared to Rs 66,943 crore as at end of March 2020.
The company continues to hold strong liquidity position with Rs 6,428 crore as cash balance as at end of March 2021 (including Rs 1500 crore invested in GSec shown under investments) with a total liquidity position of Rs 9,780 crore (including undrawn sanctioned lines). The asset and liability management (ALM) is comfortable with no negative cumulative mismatches across all time buckets.
The board of directors have recommended a dividend of Rs 0.70 per share on the equity shares of the company.
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.
The scrip fell 2.76% to currently trade at Rs 553.35 on the BSE.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
