Cholamandalam Investment & Finance Company Ltd (CIFCL) has posted a 28 per cent growth in profit after tax at ₹524 crore for the quarter ended December 31, 2021 as compared to ₹409 crore in a year-ago period.
The Murugappa Group NBFC’s total income was marginally up at ₹2,530 crore as against ₹2,505 crore in the year-ago period. The net income margin grew 9 per cent at ₹1,484 crore (₹1,364 crore).
The aggregate disbursements crossed the Rs 10,000-crore mark and stood at ₹ 10,430 crore (₹7,926 crore), an increase of 32 per cent.
“The positive momentum seen in Q2 FY22 further accelerated during Q3 FY 2022 on account of healthy demand during the festive season, boosting auto sales and improved consumer sentiment led to healthy demand for mortgage loans,” said a company statement.
In the vehicle finance business, disbursements grew 26 per cent to ₹7,647 crore (₹6,084 crore in Q3 of the previous fiscal). Loan disbursed against poperty business stood at ₹1,763 crore as against ₹1,265 crore in the year-ago quarter, an increase of 39 per cent. Home loan business disbursements were marginally up at ₹437 crore (₹434 crore).
CIFCL asset quality as at the end of December 2020, represented by Stage 3 assets, stood at 5.85 per cent, with provision coverage of 38.80 per cent against 2.57 per cent as of December 2020, with provision coverage of 44.94 per cent. As of the September 2021 quarter, it was 6.16 per cent with provision coverage of 36.45 per cent.
According to revised RBI norms, (circular dated November 12, 2021), gross NPAs and net NPAs stood at 8.53 per cent and 5.76 per cent, respectively, as of December 2021.
Assets under management grew 4 per cent at ₹79,161 crore (₹75,813 crore in the year-ago quarter).
As of December 2021, the company held a strong liquidity position with ₹6,317.50 crore as cash balance (including ₹1,500 crore invested in GSecs), with a total liquidity position of ₹10,671 crore (including undrawn sanctioned lines).
“The ALM is comfortable with no negative cumulative mismatches across all time buckets,” the statement said.
The board declared an interim dividend of 65 per cent being ₹1.30 per share, for the year ending March 31, 2022.