Cholamandalam Investment Q1 net profit increases to ₹314 cr

Murugappa group-owned Cholamandalam Investment and Finance Company recorded a 10 per cent growth in net profit in the first quarter FY20 to ₹314 crore. The company recorded a net profit of ₹285 crore for the same period last year.

Total income of the company rose by 26 per cent to ₹2,030 crore in the June quarter as against ₹1,606 crore recorded for the corresponding period previous year. Profit before tax (PBT) of the financial services company also grew by 10 per cent to ₹483 crore (₹439 crore).

Total disbursements during the April-June quarter increased by 22 per cent to ₹8,572 crore (₹7,014 crore). Disbursements were driven by a healthy 21 per cent growth in Vehicle Finance disbursements of ₹6,940 crore (₹5,715 crore). Home equity disbursements grew by 17 per cent to ₹1,101 crore during the quarter.

Assets under Management (AUM) of the company rose by 35 per cent to ₹62,827 crore (₹46,709 crore). The asset quality of the company also improved during the June 2019 quarter. Stage 3 receivables came down to 2.97 per cent in Q1FY20, from 3.57 per cent during the comparable period last year.