Cholamandalam Net Profit up by 29% at INR 1186 crore

Home Equity (HE) business disbursed ₹ 3,837 Cr as against ₹ 3,174 Cr for FY18, marking a growth of 21% YoY.

The Board of Directors of CIFCL approved the audited financial results for the quarter and year ended 31st March 2019.

Key Financial results (Q4 & FY 18-19):

• Disbursements was up at ₹ 30,451 Cr for the year (Up by 21% YoY) & ₹ 8,893 Cr for Q4.
• Total Income was up at ₹ 6,993 Cr for the year (Up by 28% YoY) & ₹ 1,894 Cr for Q4.
• PAT was up at ₹ 1,186 Cr for the year (Up by 29% YoY) & ₹ 292 Cr for Q4.
• Business AUM was up at ₹ 54,279 Cr (Up by 26% YoY)

Highlights:
The Company transitioned from IGAAP to INDAS during this year. Financial results for the year is prepared as per INDAS and correspondingly for comparable purposes previous year figures has also been reinstated as per INDAS.

During the year, the industry faced liquidity constraints due to restrictive supply of market funds. Despite market constraints, with effective banking relationships, we were able to tap the banking lines and deploy it optimally. Further the company has been maintaining cash cover at around Rs.3000 Cr, to manage funds position for next 3 months.

FY 18-19 Performance:

www.newsbarons.com**As % of average assets

Performance Highlights:

• Aggregate disbursements for the year ended March 19 were at ₹ 30,451 Cr as against ₹ 25,114 Cr in the previous year registering a growth of 21%.

• Vehicle Finance (VF) business has clocked a volume of ₹ 24,807 Cr for the year ended March 2019 as against ₹ 20,540 Cr in the previous year, reporting a growth of 21% Y-o-Y.

• Home Equity (HE) business disbursed ₹ 3,837 Cr as against ₹ 3,174 Cr for FY18, marking a growth of 21% YoY.

• Assets under management grew by 26% at ₹ 54,279 Cr as compared to ₹ 42,924 Cr in FY18.

• Profits after Tax (PAT) for the year ended March 2019 were at ₹ 1,186 Cr as against ₹ 918 Cr last year registering a growth of 29%.

• The PBT-ROTA for YTD FY19 is retained at 3.7% as in FY18.

Final Dividend:

The Board of Directors of the Company have recommended a final dividend of 20% being ₹ 2.00 per share on the equity shares of the Company, for the year ending March 31, 2019. This along with the interim dividend takes the dividend to 65% being Rs.6.50 per share for the year ending March 31, 2019.

Stock Split

The Board of Directors of the Company have recommended sub-division of equity shares of ₹ 10/- each to five shares of ₹ 2/- each. Approval of the shareholders is being sought through a postal ballot for the proposal.

Asset Quality

CIFCL continues to demonstrate strong asset quality and been able to reduce the Stage 3 receivables from 3.4% in Mar’18 to 2.7% in Mar’19 (under IND AS). As per the traditional IGAAP approach also the GNPA levels reduced from 3.0% in Mar’18 to 2.3% in Mar’19. A brief comparison under both IGAAP and IND AS is also given.

www.newsbarons.com

www.newsbarons.com

Capital Adequacy:

The Capital Adequacy Ratio (CAR) of the company as on 31st March 2019, was at 17.56% (As per IGAAP) as against the regulatory requirement of 15%.

Arun Alagappan, Executive Director, stated “We have been consistent in delivering growth over 25% in AUM, total income and PAT for the past few years and the growth has been phenomenal even during the current year across all major parameters. The Asset quality has improved further this year and is at an all-time low of 1.1% Net NPA.

During the year, the industry faced an adverse impact due to tightening of financing following the liquidity crunch. However, at Chola we did not have any impact having built credible relationships with banks and financial institutions, which resulted in more than adequate funds for the company to disburse”.