Cholamandalam Finance standalone Net up 13% at Rs 92 cr

Chennai-based Cholamandalam Investment and Finance today reported a 13 per cent rise in standalone net profit in the three months to December at Rs 92 crore as against Rs 81 crore a year ago, despite flat sales at its mainstay vehicle financing.
The flat growth in vehicle finance was offset by robust expansion in home loans which grew by 31 per cent, thus helping the overall numbers, Cholamandalam Investment Chief Financial Officer and Senior Vice-President Arul Selvan told PTI over phone from Chennai.
On a consolidated basis, the Murugappa Group company posted a net profit of Rs 93.06 crore in the October-December, 2013 quarter as against Rs 81.55 crore in the year-ago period.

He said the company continues to witness portfolio pressure in the commercial vehicle business and has taken a prudent approach to portfolio quality management through a combination of aggressive repossession of non-performing assets and conservative provisioning of repossessed stock.
Despite vigorous efforts at asset quality, the financial services provider saw its net NPAs inch up to 0.74 per cent from 0.61 per cent, while gross NPAs jumped from 1.17 per cent to 1.74 per cent during the reporting quarter.
Selvan said in Q3, the company disbursed Rs 2,587 croe in vehicle finance as against Rs 2,574 crore a year ago, while its home loans rose to Rs 688 crore from Rs 525 crore.

Disbursements from new businesses stood at Rs 61 crore for the quarter, taking total loans to Rs 3,336 crore, up from Rs 3,113 crore, posting a growth of 7 per cent, he said.

Total income rose 27 per cent to Rs 844 crore over Rs 666 crore a year ago.
During the quarter, the NBFC saw its net interest margin remaining flat at 7.29 per cent, while net interest income inched up 5.54 per cent from 5.19 per cent.
Selvan said he does not expect Q4 to be better, citing the lingering slowdown in the overall economy, which is hitting auto sales.

Capital adequacy ratio stood at 18.20 per cent as against the statutory minimum level of 15 per cent.