Money & Banking

Cholamandalam posts ₹307-crore profit in Q2

Our Bureau Chennai | Updated on November 05, 2019

Arun Alagappan elevated as Managing Director

 

 

Murugappa Group’s NBFC, Cholamandalam Investment and Finance Company Ltd (CIFCL), has announced that Arun Alagappan has been elevated as the Managing Director of the company. He has been serving as Executive Director at Cholamandalam from August 19, 2017.

The company’s board, at a meeting on Tuesday, approved the appointment of Arun Alagappan for five years effective November 15.

The company’s net profit for the quarter ended September 30, 2019, grew marginally to ₹307 crore, when compared to ₹305 crore in the year-ago quarter. Profit before tax grew 14 per cent to ₹523 crore, when compared to ₹460 crore. Total expenses were higher at ₹216 crore against ₹155 crore in the year-ago quarter.

Total income from operations stood at ₹2197 crore, against ₹1,676 crore, posting a growth of 31 per cent. Total disbursements saw an increase of 7 per cent at ₹7,381 crore (₹6,899 crore). It disbursed ₹5,796 crore in vehicle business, against ₹5609 crore in a year-ago period, an increase of 3 per cent, mainly due to the stagnation in the industry volumes during the September 2019 quarter.

Home equity business reported 17 per cent increase at ₹1,064 crore (₹910 crore). Amid tight market conditions, the company could reduce the stage 3 receivables to 3.18 per cent in Q2 (under IND AS) of this fiscal, when compared to 3.40 per cent in the year-ago quarter, with a provision coverage of 34.4 per cent.

As per the traditional IGAAP approach, too, GNPA levels have reduced to 2.75 per cent from 2.95 per cent, with a provision coverage of 43.1 per cent

“We were able to register a growth of 7 per cent in our disbursements, in spite of the severe slowdown in the market. In vehicle finance, since there was slow down in commercial vehicle space, we increased our focus on the refinance and passenger vehicle segments to sustain our growth momentum. In the home equity and the home loan businesses, we were able to deliver steady growth, and we are positive on the business outlook for the rest of the year,” said Alagappan.

Published on November 05, 2019

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

You May Also Like