Cholamandalam Investment & Finance Company Ltd (CIFCL) has posted a 39 per cent growth in its net profit at ₹304 crore for the quarter ended December 31, 2018 when compared with ₹219 crore in a year-ago period, helped by growth in revenues.
Its total income grew 32 per cent at ₹1,831 crore against ₹1,389 crore in a year ago period..
“This quarter, the company achieved the highest after-tax profit of ₹304 crore which is expected to improve in the periods to come, by a continued focus on reduction of operating cost & a shift towards higher yield segments,” Arun Alagappan, Executive Director, said in a statement.
The aggregate disbursements saw an increase of 13 per cent at ₹7,644 crore as against ₹6761 crore in Q3 of previous fiscal.
In vehicle finance business, disbursements grew 11 per cent at ₹6,240 crore (₹5,607 crore). The slow-down in disbursements was due to the stagnation in the industry volumes during the quarter.
Expansion plan
Alagappan said that going forward, two-wheeler and personal vehicle segment would be strong growth drivers. “We also plan to deepen our presence in newer geographical areas by expanding to more than 1,000 branches by the year-end,” he added.
Home equity disbursements maintained double digit growth at 19 per cent at ₹954 crore (₹799 crore).
The Murugappa Group company ended the December 2018 quarter with GNPA (gross NPA) of 2.7 per cent, down from 2.8 per cent in Q2 and 3.7 per cent in Q3 of this fiscal. Net NPA stood at 1.5 per cent (1.6 per cent in Q2 of this fiscal and 2.3 per cent in the year-ago quarter).
Assets under management grew 32 per cent at ₹52,868 crore (₹39,985 in the year-ago quarter).