Cholamandalam reports flat net as vehicle finance shrinks

Cholamandalam Investment and Finance Company reported a marginal rise in profit today, at Rs 93 crore for April-June 2014, as against Rs 91 crore in the three months to June 2013, after its vehicle finance portfolio shrunk.
Its core vehicle finance portfolio came down to Rs 2,320 crore from Rs 2,609 crore, but its home loan portfolio soared to Rs 716 crore from Rs 62 crore a year ago. Disbursements from new businesses stood at Rs 153 crore, the Chennai-based company said in a statement issued here today.
Aggregate disbursements of the company for the quarter stood at Rs 318 crore as against Rs 3,278 crore.

Its total income grew by 14 per cent to Rs 869 crore, from Rs 762 crore.
With continuing stress witnessed in the commercial vehicles segment, gross bad loans rose to 2.4 per cent and net non-performing assets (NPAs) stood at 1.1 per cent.
Its subsidiaries Cholamandalam Securities as well as Cholamandalam Distribution Services had together made a profit of Rs 2.56 crore, as against Rs 0.87 crore.
During the reporting quarter, the company expanded its presence into three additional locations, taking the total number of branches to 577.