Cholamandalam Investment and Finance Ltd.’s standalone net profit for the first quarter ended June 2020 rose 37% to ₹431 crore. Revenue from operations grew to ₹2,071 crore from ₹1,913 crore, while total AUM grew 13% to ₹70,826 crore. “It was a challenging quarter for the NBFC industry with muted disbursements and a slowdown in repayments due to the moratorium and lockdown,” Arun Alagappan, managing director, CIFCL, said.
“Chola’s response was comprehensive, with our treasury ramping up liquidity, our tech team identifying and deploying digital interventions for disbursements and collections, our analytics team being able to identify vulnerable segments and more importantly, our business teams adapting to the new normal of driving business despite working away from offices,” he said in a statement.
Net income margin rose 4% to ₹943 crore. Aggregate disbursements declined by 58% to ₹3,589 crore, while disbursements picked up after the lockdown relaxations post May 15. The disbursements were predominantly in tractors, two-wheelers, construction equipment and used business segments.
Vehicle Finance (VF) business clocked a volume of ₹3,231 crore (₹6,940 crore). Loan Against Property business disbursed ₹119 crore against ₹1,101 crore. Home Loan (HL) business disbursed ₹190 crore against ₹420 crore.
“Looking forward, we expect disbursements to improve, considering our diversified product portfolio and pan India presence. We will also continue to retain our increased focus on the collections and cost fronts,” he said.
Mr. Alagappan said that nearly 74% of his customers have availed moratorium considering the uncertainty over the period of lockdown. However, post relaxations of lock down after May 15, around 50% of moratorium customers started repaying partial or full installments.
CIFCL has not availed moratorium so far on its borrowings. It holds strong liquidity position with ₹7,169 crore cash balance as of June 2020, with a total liquidity position of ₹11,677 crore (including undrawn sanctioned lines).
The Asset Liability Management is comfortable with no negative cumulative mismatches across all time buckets. Even after extending the moratorium to its customers, for the second phase, the cash position of the Company is adequate to meet all its maturities and fixed obligations till Dec 2020, the company said.