You are here: Home » PTI Stories » National » News
Business Standard

Cholamandalam Investment Q4 net surges 42 pc to Rs 192 crore

Press Trust of India  |  Mumbai 

Cholamandalam Investment and Finance today reported a 42 per cent growth in net profit at Rs 192 crore for the March quarter, helped by higher disbursements and reduction in cost of funds.

The company had reported a profit after tax (PAT) of Rs 135 crore in the same period last year.

For the full year (2015-16), PAT stood at Rs 568 crore, up 31 per cent over Rs 435 crore posted last year.

"The profit was driven by pick up in volumes, stable gross NPA numbers and lower cost of funds," Cholamandalam Investment Executive Vice-President and Chief Financial Officer D Arul Selvan told PTI.

Aggregate disbursements stood at Rs 4,941 crore in the January-March period as against Rs 3,509 crore in the year-ago quarter.

In the vehicle finance business, the company disbursed Rs 3,760 crore, while home equity disbursement grew by 16 per cent to Rs 994 crore.

The gross NPA was at 3.53 per cent (at 4 months' overdue) and net NPA was at 2.13 per cent.

The company has created an additional standard asset provision for Rs 54.80 crore towards provisioning for 3 months' overdue, to be complied by March 2018 as per RBI guidelines.

Net Income Margin (NIM) was 9.4 per cent for the quarter compared to 8 per cent last year.

"The NIM was strengthened by a healthy increase in interest income, reduction in cost of funds and substantial increase in fee and other income," Selvan said.

Cost of funds declined to 9.6 per cent in Q4 from 9.92 per cent in the year-ago period. The capital adequacy ratio (CAR) of the company was at 19.68 per cent as against the regulatory requirement of 15 per cent.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, April 29 2016. 21:13 IST