Cholamandalam Investment & Finance Company Ltd (CIFCL) has reported a modest increase in its net profit at ₹292 crore for the quarter ended March 31, 2019 when compared with ₹285 crore in the year-ago period, amid a challenging period due to liquidity-related constraints.
However, the company’s total income grew 29 per cent at ₹1885 crore as against ₹1456 crore in a year ago period, helped by strong revenue growth in the vehicle finance business. Interest income grew to ₹1770 crore the March 2019 quarter from ₹1380 crore, an increase of 28 per cent.
For the full year ended March 31, 2019, the company’s net profit grew by 29 per cent at ₹1186 crore (₹918 crore in 2017-18). Total income stood at ₹6993 crore (₹5480 crore), posting an increase of 28 per cent, according to a statement. The company said the industry faced liquidity constraints due to the restrictive supply of market funds. However, it was able to tap the banking lines and deploy it optimally. Further, the company has been maintaining cash cover at about ₹3000 crore, to manage funds position for the next three months.
The aggregate disbursements for the year 2018-19 saw an increase of 21 per cent at ₹30,451 crore as against ₹25,114 crore in the previous fiscal. The company ended the March 2019 quarter with GNPA (gross NPA) of 2.3 per cent, down from 2.8 per cent in Q3 and 3.0 per cent in Q4 of previous fiscal. Net NPA stood at 1.1 per cent (1.5 per cent in Q3 and 1.7 per cent in the year-ago quarter).
The Board declared a final dividend of 20 per cent (₹2 per share). It had announced an interim dividend of 45 per cent (₹4.5 per share) earlier. The Board also recommended sub-division of equity shares of ₹10 each to five shares of ₹2 each. Approval of the shareholders is being sought through a postal ballot for the proposal. Cholamandalam’s assets under management grew 26 per cent at ₹54,279 crore (₹42,924 cr in the previous fiscal).