Cholamandalam Investment Q2 net up 40% at Rs 610 cr, revenue dips slightly

Aggregate disbursements in Q2FY22 were up 35% at Rs 8,706 crore, from Rs 6,457 crore in Q2FY21

Cholamandalam Investment & Finance Company Ltd (CIFCL) has posted a 40 per cent rise in net profit for the second quarter of the financial year 2021-22 to Rs 610.5 crore compared to Rs 434.6 crore during the quarter ended in September 2020.

On the other hand, its revenue from operations saw a marginal dip of 0.5 per cent to Rs 2,346.9 crore in Q2 against Rs 2,358.12 crore in July to September period of the last financial year. “The last quarter had several positives that led to expectations of a swift revival of the Indian economy. This economic revival has led to a sharp recovery in Chola’s disbursements and collections during Q2FY22. We continue to hold Management and additional overlay provisions at Rs 700 crore. Apart from this, we have created 10 per cent additional provision for all restructured accounts as per RBI guidelines,” the company said in a statement.

Assets under management as of September 2021 stood at Rs 75,063 crore as compared to Rs 74,471 crore during the same time last fiscal. Aggregate disbursements in Q2FY22 were up 35  per cent at Rs 8,706 crore, from Rs 6,457 crore in Q2FY21. Vehicle Finance disbursements rose 22 per cent to Rs 6,161 crore from Rs 4,781 crore a year go. Loans against property (LAP) disbursals rose 65 per cent to Rs 1,736 crore during the quarter from Rs 1,052 crore in Q2FY21. Home Loan (HL) disbursals stood at Rs 494 crore in QFY22, as against Rs 381 crore in Q2FY21.

The asset quality of the company at the end of September 2021, represented by Stage-3 assets, stood at 6.16 per cent, with a provision coverage of 36.45 per cent. This was against 6.79 per cent at end of June 2021 with a provision coverage of 35.51 per cent. The total provisions currently carried against the overall book is 4.09 per cent as against the normal overall provision levels of 1.75 per cent carried prior to the Covid-19 pandemic, representing more than twice the normal pre-covid provision coverage level.

Total restructuring Book (1.0 & 2.0) stood at Rs 4,749 Cr as on September 2021 representing 6.85 per cent of the total Book in Stage 2. The Capital Adequacy Ratio (CAR) of the company as on September 2021, was at 19.63 per cent as against the regulatory requirement of 15 per cent.