Choldmandalam Invst & Fin Q4 net up 6%

Plans equity offering in second half

Investment and Finance Company Limited (CIFCL), Murugappa Group Company, is looking at raising capital through equity offering in the second half to fund business growth.

Meanwhile Chennai-based finance company posted a six per cent rise in its net profit at Rs 90.73 crore in the fourth quarter ended March 2014, as against Rs 85.76 crore in January-March 2013. The net profit for 2013-14 rose by 19 per cent to Rs 364.01 crore as against Rs 306.55 crore in 2012-13.

Vellyan Subbiah, its managing director, CIFCL said the present capital base can support growth in 2014-15. The company may raise equity through Qualified Institutional Placement (QIP) or private equity in the second half. The final decision will be based on the performance, business outlook.

The Company raised Tier II capital of Rs 328 crore during the FY14 through subordinated debt and perpetual debt instruments to strengthen its capital adequacy ratio.

Its capital adequacy ratio (CAR) stood at 17.23 per cent as compared to the regulatory requirement of 15 per cent.

Subbiah said the performance during quarter under review was a mix bag. The home loan segment and Small and Medium Enterprise segment did well. It disbursed Rs 785 crore in Home Equity loans in Q4 as against Rs 638 crore in Q 4 of 2012-13.

Disbursements in vehicle finance segment were marginally lower. The company disbursed Rs 2,795 crore in Q4 of Fy14 as against Rs 3,140 crore a year ago.

The total assets under Management rose by 24 per cent to cross Rs 25,000 crore mark at end of March 2014.