Companies

Cholamandalam Investment Q4 net profit up at ₹243 crore

Our Bureau Chennai | Updated on May 07, 2021

CIFCL reported loan losses of ₹504 crore   -  Getty Images/iStockphoto

FY21 net profit rises 44% to ₹1,515 crore

Cholamandalam Investment & Finance Company Ltd (CIFCL) reported a zoom in its net profit at ₹243 crore for the quarter ended March 31, 2021, as against ₹43 crore in the year-ago period.

The company’s total income grew 14 per cent at ₹2,461 crore as against ₹2,151 crore in the year-ago period. “Net income margin grew 32 per cent at ₹1,342 crore (₹1,016 crore)”, according to a statement

CIFCL reported loan losses of ₹504 crore, which included additional overlay of ₹350 crore for the quarter, as against ₹557 crore in the year ago quarter.

Disbursements

The aggregate disbursements saw a 43 per cent growth at ₹8,071 crore (₹5,663 crore). In the vehicle finance business, disbursements grew 31 per cent to ₹6,153 crore from ₹4,703 crore in Q4 of the previous fiscal. Home loan business disbursements reported a significant growth of 99 per cent at ₹538 crore (₹271 crore). Loan against property business disbursed ₹1,191 crore as against ₹589 crore in the year-ago quarter, up 102 per cent.

CIFCL asset quality as of March 31, 2021, represented by Stage 3 assets stood at 3.96 per cent, with a provision coverage of 44.27 per cent as against 3.80 per cent as of March 30, 2020 with a provision coverage of 41.52 per cent.

For FY21, the company’s net profit grew 44 per cent at ₹1,515 crore compared to ₹1,052 crore. Total disbursements fell 10 per cent at ₹26,043 crore (₹29,091 crore).

The Board of Directors of the company has recommended a dividend of ₹0.70 per share (35 per cent). This is in addition to the interim dividend of ₹1.30 per share (65 per cent) for 2020-21 declared earlier.

Liquidity position

As of March 31, 2021, the company held a strong liquidity position with ₹6,428 crore as cash balance (including ₹1,500 crore invested in G-sec shown under investments), with a total liquidity position of ₹9,780 crore.

“The ALM is comfortable with no negative cumulative mismatches across all time buckets,” said the statement. Assets under management grew 14 per cent at ₹76,529 crore as of March 2021 (₹66,943 crore as of March 2020).

Published on May 07, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor