Cholamandalam Investment & Finance Company Ltd (CIFCL) reported a zoom in its net profit at ₹243 crore for the quarter ended March 31, 2021, as against ₹43 crore in the year-ago period.
The company’s total income grew 14 per cent at ₹2,461 crore as against ₹2,151 crore in the year-ago period. “Net income margin grew 32 per cent at ₹1,342 crore (₹1,016 crore)”, according to a statement
CIFCL reported loan losses of ₹504 crore, which included additional overlay of ₹350 crore for the quarter, as against ₹557 crore in the year ago quarter.
Disbursements
The aggregate disbursements saw a 43 per cent growth at ₹8,071 crore (₹5,663 crore). In the vehicle finance business, disbursements grew 31 per cent to ₹6,153 crore from ₹4,703 crore in Q4 of the previous fiscal. Home loan business disbursements reported a significant growth of 99 per cent at ₹538 crore (₹271 crore). Loan against property business disbursed ₹1,191 crore as against ₹589 crore in the year-ago quarter, up 102 per cent.
CIFCL asset quality as of March 31, 2021, represented by Stage 3 assets stood at 3.96 per cent, with a provision coverage of 44.27 per cent as against 3.80 per cent as of March 30, 2020 with a provision coverage of 41.52 per cent.
For FY21, the company’s net profit grew 44 per cent at ₹1,515 crore compared to ₹1,052 crore. Total disbursements fell 10 per cent at ₹26,043 crore (₹29,091 crore).
The Board of Directors of the company has recommended a dividend of ₹0.70 per share (35 per cent). This is in addition to the interim dividend of ₹1.30 per share (65 per cent) for 2020-21 declared earlier.
Liquidity position
As of March 31, 2021, the company held a strong liquidity position with ₹6,428 crore as cash balance (including ₹1,500 crore invested in G-sec shown under investments), with a total liquidity position of ₹9,780 crore.
“The ALM is comfortable with no negative cumulative mismatches across all time buckets,” said the statement. Assets under management grew 14 per cent at ₹76,529 crore as of March 2021 (₹66,943 crore as of March 2020).