Chola Q3 PAT up by 39% at INR 305 crore

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32% Growth in Total Income over FY 18 at INR 1,831 crore

“Assets under Management crosses Rs. 50,000 Cr”

Q3 Performance

  • 39% Growth in PAT over FY 18 Highest ever quarterly PAT of Rs. 304 Cr.
  • AUM of Rs. 52,868 Cr (32% Growth)

YTD Performance

  • 41% Growth in PAT over FY 18 Highest ever YTD PAT of Rs. 894 Cr.
  • 26% Growth in Total Income over FY 18 Total income of Rs. 5,120 Cr

The Board of Directors of CIFCL today approved the un-audited financial results for the quarter/nine months ended 31st December 2018.

Year-on-year figures

Aggregate disbursements for the period ended December 18 were at Rs. 21,558 Cr as against Rs. 17,106 Cr in the same period in the previous year registering a growth of 26%. The disbursements for the quarter ended December 18 were at Rs. 7,644 Cr as against Rs. 6,761 Cr in Q3 of FY18, registering a growth of 13%.

Vehicle Finance (VF) business has clocked a volume of Rs. 17,447 Cr for the period ended December 2018 as against Rs. 13,720 Cr for the same period in the previous year, reporting a growth of 27% Y-o-Y. The same numbers for the quarter ended December 18 were at Rs. 6240 Cr as against Rs. 5607 Cr in Q3 FY 18, reporting a growth of 11%. The slow-down in VF disbursement can be explained by the stagnation in the industry volumes during Q3. Despite the almost stagnant market, the company outperformed the industry with 48% quarter-on-quarter growth in the number of new vehicles financed compared to the 7% increase for the industry taken as a whole.

Home Equity (HE) business disbursed Rs. 2,803 Cr as against Rs. 2,368 Cr for YTD December FY18, marking a growth of 18% YoY. The numbers for the quarter ended December 18 disbursements were at Rs. 954 Cr as against Rs. 799 Cr in Q3 of FY 18 registering a growth of 19%.

Assets under management grew by 32% at Rs. 52,868 Cr as compared to Rs. 39,985 Cr in Q3 FY18.

Profits after Tax (PAT) for the period ended December 18 were at Rs. 894 Cr as against Rs. 633 Cr last year registering a growth of 41%. For the quarter the PAT was at Rs. 304 Cr as against Rs. 219 Cr in Q3 FY 18.

The PBT-ROTA for YTD FY19 improved to 3.8% as against 3.5% in YTD December of FY18. This improvement in RoTA can be attributed to two drivers- reduction in expected credit loss for HE & HL verticals and reduction in operating cost for the VF vertical.

Interim Dividend:

The Board of Directors of the Company declared an Interim dividend of 45% being Rs. 4.5 per share on the equity shares of the Company, for the year ending March 31, 2019.

Asset Quality

CIFCL continues to demonstrate strong asset quality and been able to reduce the Stage 3 receivables from 4.3% in Dec 17 to 3.3% in Dec’18 (under IND AS). As per the traditional IGAAP approach also the GNPA levels reduced from 3.7% in Dec 17 to 2.7%. A brief comparison under both IGAAP and IND AS is also given.

Capital Adequacy:

The Capital Adequacy Ratio (CAR) of the company as on 31 st December 2018, was at 17.83% as against the regulatory requirement of 15%. The Tier I capital was at 13.09% as against the regulatory requirement of 10%.

Executive Director Comments:

Commenting on the quarterly results, Arun Alagappan, Executive Director, stated “Growth in disbursements of 26% against the previous year is a significant achievement considering the sluggish performance of the market. Going forward, we see significant opportunities in the two wheeler & personal vehicle segment and expect these to be strong growth drivers. We also plan to deepen our presence in newer geographical areas by expanding to more than 1000 branches by the end of the year.
This quarter, the company achieved the highest after tax profit of ₹ 304 crore which is expected to improve in the periods to come, by a continued focus on reduction of operating cost & a shift towards higher yield segments.”

About Chola

Cholamandalam Investment and Finance Company Limited (Chola), incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.