Cholamandalm Q3 net profit up by 28% at INR 389 crore

Cholamandalm Q3 results

The Board of Directors of CIFCL today approved the un-audited financial results for the quarter and nine months ended31stDecember 2019.

Key Financial results (Q3 FY20 & YTD Dec 2019):

• Total Income at ₹ 2,275 Cr (Up 25%YoY)for Q3 FY20 and ₹ 6,501 Cr (Up 27% YoY) for YTD Dec 2019
• PAT at ₹ 389 Cr (Up 28% YoY) for Q3 FY20 and ₹ 1,010 Cr (Up 13% YoY) for YTD Dec 2019
• Total AUM up at ₹ 65,992 Cr (Up 25% YoY).

 

Highlights:

Q3 and YTD Dec 2019 Performance:

The company has posted a strong performance in Q3 and YTD Dec 2019, despite the prevailing tough market conditions.

Particulars Q3FY19 Q3FY20 Growth (y-o-y) YTD Dec 2018 YTD Dec 2019 Growth (y-o-y)
Disbursement 7644 7475 -2% 21558 23429 9%
AUM 52591 65992 25% 52591 65992 25%
Total Income 1826 2275 25% 5107 6501 27%
Finance Cost -951 -1192 25% -2602 -3456 33%
Net Income Margin 875 1083 24% 2505 3045 22%
Total Expense  -316 -424 34% -888 -1176 33%
Loan Losses -96 -136 41% -256 -341 33%
PBT 463 522 13% 1362 1528 12%
PAT 304 389 28% 894 1010 13%

Performance Highlights:

• Aggregate disbursements for YTD Dec 2019 was at ₹23,429 Cr against ₹21,558 Cr of YTD Dec 2018, registering a growth of 9%. The disbursements for quarter ended Dec 2019 was at ₹ 7,475 Cr as against ₹ 7,644 Cr for the quarter ended Dec 2018.

Vehicle Finance (VF) business has clocked a volume of ₹ 18,685 Cr for the period ended December 2019 as against ₹ 17,600 Cr in the previous year, reporting a growth of 6%. The same numbers for the quarter ended December2019 was at ₹5,949 Cr as against ₹6,277 Cr forthe quarter ended December2018.The slow-down in VF disbursement is due to industry de-growth in Commercial Vehicles segment during this quarter.

Home Equity (HE) business disbursed ₹ 3,073 Cr as against ₹ 2,803 Cr for period ended December 2018, marking a growth of 10% Y-o-Y. Disbursements for the quarter ended December 2019 was at ₹ 908 Cr as against ₹ 954 Cr for the quarter ended December2018.

• AUM grew by 25% at ₹ 65,992 Cr as on YTD Dec 2019 as compared to ₹ 52,591 Cr for YTD Dec 2018.

• Vehicle Finance (VF) AUM grew by 19% to ₹ 44,589 Cr as on YTD Dec 2019 as against ₹ 37,508 Cr for YTD Dec 2018

• Home Equity (HE) AUM grew by 16% to ₹ 13,000 Cr as on YTD Dec 2019 as against ₹ 11,186 Cr for YTD Dec 2018.

• Profits before Tax (PBT) for the YTDDecember 2019 was at ₹ 1,528 Cr as against ₹ 1,362 Cr last year registering a growth of 12%. For the quarter ended December 19, the PBT was at ₹ 522 Cr as against ₹ 463 Cr for the quarter ended December 18, registering the growth of 13%.

• The PBT-ROTA for YTD Dec 2019is at 3.4% and ROE for YTD Dec 2019 is at 20.3%

• Our Branch presence increased to 1073 Branches in YTD Dec 2019.

Capital Issue – Preferential Allotment:

The Board of directors at their meeting held this afternoon have, subject to the approval of shareholders, approved an Issue of equity shares by way of preferential issue to Cholamandalam Financial Holdings Limited, a promoter entity up to an amount not exceeding Rs.300 crores in one or more tranches at such price in accordance with Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Asset Quality

Notwithstanding the tight market conditions, CIFCL continues to maintain strong asset quality with a marginal increase in the Stage 3 receivables from 3.30% in Dec’18 to 3.54% in Dec’19 (under IND AS) with a provision coverage of 33.0%.

Capital Adequacy:

The Capital Adequacy Ratio (CAR) of the company as on 31stDecember2019, was at 17.04% as against the regulatory requirement of 15%.

Arun Alagappan, Managing Director stated “In Q3 of FY 20, faced with the slowdown in the auto sector we changed our product mix to shore up our net interest income. Accordingly, we were able to grow our AUM at over 25% and PAT growth over 28%. While doing this we were able to contain our Stage 3 levels at 3.5% which is a reflection of our asset quality.”