Cholamandalam Investment clocks 2Q PAT at Rs 306.94cr

: Cholamandalam Investment and Finance Company Ltd on Tuesday reported a marginal rise on its consolidated Profits After Tax for the quarter ending September 30, 2019 to Rs 306.94 crore.

The city-based Murugappa Group company had reported a consolidated PAT at Rs 298.74 crore registered during the corresponding quarter of the previous year.

For the six month period ending September 30, 2019 consolidated Profits After Tax grew to Rs 622.11 crore from Rs 579.36 crore registered year ago.

The consolidated total income for the quarter under review went upto Rs 2,212.48 crore from Rs 1,702.43 crore registered a year ago.

For the half year ending September 30, 2019 total income surged to Rs 4,257.76 crore from Rs 3,345.69 crore registered during the same period a year ago.

In a statement the company said aggregate disbursements for the half year (ending September 30 2019) was Rs 15,954 crore against Rs 13,913 crore in same period last fiscal.

The disbursements for the quarter ending September 30, 2019 grew to Rs 7,381 crore from Rs 6,899 crore recorded in the same period of the last financial year.

The vehicle finance business clocked a volume of Rs 12,736 crore for the half year ending September 30, 2019 from Rs 11,323 crore in same period last fiscal.

For the quarter ending September 30, 2019 the vehicle finance business was Rs 5,796 crore as against Rs 5,609 crore registered a year ago.

On the home equity business, the company said this division disbursed Rs 2,165 crore for the half year ending September 30, 2019 from Rs 1,849 crore recorded same period last fiscal.

For the quarter ending September 30, 2019 disbursements in the home equity business was Rs 1,064 crore from Rs 910 crore registered in the corresponding quarter of the previous year.

The assets under management for the half year ending September 30,2019 was Rs 64,409 crore as compared to Rs 52,486 crore registered same period last fiscal.

In another notification to stock exchanges, the company said Executive Director Arun Alagappan has been appointed as Managing Director for a five year period with effect from November 15.

On the financial performance, Alagappan said "with recent government announcements as well as a slew of festive season offers, we hope the volumes improve in next few months".

"In the home equity and home loan businesses we were able to deliver steady growth and we are positive on the business outlook for the rest of the year", he said.

He said the company was able to disburse seven per cent more in July-September 2020 quarter as compared to same period last year despite the severe slowdown in the market.

"The growth in AUM (assets under management) is over 20 per cent. In vehicle finance, since there was slowdown in commercial vehicle space, we increased our focus on refinance and passenger vehicle segments to sustain our growth momentum, he said.