Cholamandalam Investment & Finance Company (CIFCL), the financial services arm of the diversified Murugappa group, has reported 30 percent growth in net profit at Rs 942 crore for the June quarter, over the year-ago quarter. the significant rise in profit was on the back of healthy growth in all its credit verticals, the non-banking financial company said.
The Chennai-based CIFCL said its disbursements rose 22 percent to 24,332 crore in the reporting quarter, taking the total AUM (assets under management) up by 38 percent to Rs 1,68,832 crore. This gave the firm a net income of Rs 3,033 crore, a growth of 43 percent, and a growth of 41 percent in total income at Rs 5,828 crore.
The robust rise in profit is interesting as it comes even after a 39 percent escalation in finance cost from Rs 2,007 crore to Rs 2,796 crore and a 50 percent rise in expenses from Rs 787 crore to Rs 1,183 crore. The company also saw 56 percent spike in loan losses to Rs 581 crore.
Simialrly bad loans rose with gross NPAs or stage 3 (representing 90+ dues) rising to 2.62 percent from 2.48 percent and net NPAs increasing to 2.37 percent as against 2.32 percent.
Vehicle finance loans rose 13 percent to Rs 12,766 crore, loan against property rose 45 percent to Rs 3,874 crore from Rs 2,679 crore, home loans rose 22 percent to Rs 1,778 crore, SME book was the slowest with just 6 percent growth to Rs 2,160 crore.
Assets under management jumped 38 percent to Rs 1,68,832 crore .
The 123-year-old Murugappa Group has diverse businesses in agriculture, engineering, financial services and more with nine listed companies—Carborundum Universal, CG Power & Industrial Solutions, Cholamandalam Financial Holdings, Cholamandalam Investment & Finance Company, Cholamandalam MS General Insurance Company, Coromandel International, EID Parry India, Shanthi Gears, Tube Investments and Wendt India