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Cholamandalam Investment & Finance Company (CIFCL) posted 53 per cent increase in net profit at ₹249 crore for the third quarter ended December 31, 2017, compared with ₹163 crore in the year-ago period, on the back of strong growth in disbursements.
The Murugappa Group firm’s total income from operations grew 18 per cent to ₹1,383 crore (₹1,176 crore in the year-ago period).
Net income margin was higher at 9.6 per cent (8.4 per cent), according to a statement.
Aggregate disbursements rose 55 per cent to ₹6,761 crore (₹4,373 crore).
Volume growth
In vehicle finance business, disbursements grew 61 per cent to ₹5,607 crore (₹3,490 crore). This was primarily driven by strong growth in volumes of heavy and light commercial vehicles, complemented by used vehicles.
Home equity disbursements also reported strong growth of 29 per cent at ₹799 crore (₹619 crore).
The company closed the December 2017 quarter with gross NPA of 3.7 per cent on three months’ overdue, down from 4.46 per cent in Q2 and 4.73 per cent in Q1 of this fiscal. Net NPA stood at 2.34 per cent for the third quarter.
Dividend declared
The board declared an interim dividend of 45 per cent (₹4.5 per share) on the equity shares of the company for the year ending March 31, 2018.
Assets under management grew 20 per cent to ₹40,056 crore (₹33,381 crore).
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