Cholamandalam Investment & Finance Company Ltd (CIFCL) has reported a profit after tax at ₹43 crore for the quarter ended March 31, 2020 when compared with ₹292 crore in a year-ago period.

One-time provision of ₹504 crore towards Covid-19 and macro provisions, resulted in March 2020 quarterly PAT dropping to ₹43 crore. PAT before this provision was at ₹418 crore, which is up by 43 per cent for the quarter over the previous year, according to a statement.

The company’s total income was higher at ₹2,151 crore as against ₹1,885 crore in a year ago period, while interest income grew to ₹2,047 crore from ₹1,772 crore.

Disbursements were down by 36 per cent in Q4 due to shut down and it pulled down full-year disbursements, which fell four per cent to ₹29,091 crore (₹30,450 crore).

“As of March 20, while many in the industry were affected by the liquidity crunch due to Covid-19, Chola was strongly placed with sufficient liquidity to pass on the moratorium benefits to its customers, without having to avail any,” said Arun Alagappan, Managing Director of the company.

For the full year ended March 31, 2020, the company’s net profit was ₹1052 crore as against ₹1186 crore in the previous fiscal. Total income stood at ₹8653crore (₹6993 crore). On a comparable basis, PAT for 2019-20 was at ₹1387 crore before the one-time provision of ₹504 crore as against ₹1186 crore last year, registering a growth of 17 per cent.

The Company has created a one-time contingency provision of ₹284 crore towards probable losses against loans for which moratorium was extended. Over and above this, the company has also created a macro provision of ₹250 crore to meet contingencies that may arise post moratorium due to the global recession and economic slow-down.

In total, the company has set aside an additional provision of ₹534 crore (including ₹30 crore of Macro provision created in FY 19) to meet any contingencies that may arise in future due to the Covid-19 shut down.

Its assets under management grew by 16 per cent at ₹66,943 crore as of March 31, 2020 as compared to ₹57,560 crore in FY19.

The Company had closed March with a cash balance of ₹6446 crore and also had sanctioned lines of ₹4462 crore. This adequately covers the needs of the ALM process with no negative cumulative mismatches across all time buckets.

The company said the moratorium is extended for 76 per cent of customers – expected to be leveraged by them for the second stage (June-August) also. Chola has not availed moratorium so far on its borrowings, and it does not intend to avail any moratorium benefit.

Even after extending the moratorium to its customers, for the second phase, the cash position of the Company is adequate to meet all its maturities and fixed obligations till September 2020.

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