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Cholamandalam Investment and Finance Company has recorded a standalone profit at ₹606.54 crore for the quarter ending September 30, 2021, the company said on Saturday.
The firm had reported standalone net at ₹431.91 crore during corresponding quarter previous year. For the six month period ending September 30, 2021 standalone profit surged to ₹ 933.34 crore from ₹ 862.84 crore registered in the corresponding period last year.
Standalone total income for the quarter under review grew to ₹ 2,470.69 crore from ₹ 2,439.78 crore registered in the same period last fiscal. Total income on standalone basis for the half year ending September 30, 2021 stood at ₹4,937.70 crore as against ₹4,553.43 crore registered in the same period last fiscal.
Many positives
In a statement, the company said the quarter under review had several positives including the waning of Covid-19 second wave, increased vaccination drive and a good monsoon. “These expectations have been supported by uptrend in economic indicators like tax collections, power consumption, vehicle registrations, highway toll collection,” it said.
Also read: Cholamandalam Investment and Finance Q1 profit falls 24%
The economic revival has led to a sharp recovery in Chola's disbursements and collections during FY2021-22. “We continue to hold management and additional overlay provisions at ₹700 crore. Apart from this, we have created 10 per cent additional provision for all restructured accounts as per RBI guidelines,” it added.
Aggregate disbursements in Q2 FY 22 were at ₹ 8,706 crore as against ₹ 6,457 crore in Q2 of FY 2021 with a growth of 35 per cent. Vehicle finance disbursements were at ₹ 6,161 crore in Q2 FY 22 as against ₹ 4,781 crore in Q2, FY 2021, with a growth of 29 per cent. Loan against property business disbursed is ₹1,736 crore in Q2FY 22, as against ₹1,052 crore in Q2 FY 2021.Home loan business disbursed at ₹ 494 crore in Q2 FY 22 as against ₹ 381 crore in Q2 FY 2021.
The assets under management as of September 30, 2021 stood at ₹75,063 crore as compared to ₹74,471 crore as of end September in FY 2021.
“The company continues to hold a strong liquidity position with ₹5,401 crore as cash balance at end of September 2021 including ₹1,500 crore invested, with a total liquidity position of ₹ 9,800 crore.
The Capital Adequacy Ratio of the company as on September 30, 2021 was at 19.63 per cent as against the regulatory requirement of 15 per cent, the statement said.
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