Cholamandalam Investment & Finance Company Ltd (CIFCL) has posted a 5 per cent growth in its net profit at ₹409 crore for the quarter ended December 31, 2020 compared with ₹389 crore in the year-ago period, supported by growth in income.
The company’s total income grew 10 per cent at ₹2,505 crore as against ₹2,275 crore in the year-ago period. Net income margin grew 26 per cent at ₹1,364 crore (₹1,082 crore), according to a statement
CIFCL reported higher loan losses at ₹445 crore, which included additional Covid-19 provisions of ₹216 crore for the nine-month ended December 31, 2020, and total Covid-19 provisions as of December 20 is ₹750 crore.
Disbursements
The aggregate disbursements grew six per cent at ₹7,926 crore (₹7,475 crore). In the vehicle finance business, disbursements grew marginally to ₹6,084 crore from ₹5,949 crore in Q3 of previous fiscal.
Home loan business’ disbursements at ₹434 crore (₹400 crore). Loan Against Property business disbursed ₹1,265 crore as against ₹908 crore in the year-ago quarter, an increase of 39 per cent.
CIFCL asset quality as at end of December 2020, represented by Stage 3 assets stood at 2.57 per cent, with a provision coverage of 44.94 per cent as against 3.54 per cent as of December 2019 with a provision coverage of 32.95 per cent.
Provision
The company continues to carry additional provision of ₹751 crore for future contingencies as on December 31, 2020. The total provisions currently carried against the overall book is 3.09 per cent as against the normal overall provision levels of 1.75 per cent carried prior to the Covid-19 pandemic, representing an increase of above 75 per cent.
As of December 2020, the company held a strong liquidity position with ₹6,228 crore as cash balance (including ₹1,500 crore invested in Gsec shown under investments, as it is held to maturity), with a total liquidity position of ₹10,923 crore (including undrawn sanctioned lines).
“The ALM is comfortable with no negative cumulative mismatches across all time buckets,” said the statement. Assets under management grew 15 per cent at ₹75,813 crore (₹65,992 crore in the year-ago quarter). The Board declared an Interim dividend of 65 per cent being ₹1.30 per share on the equity shares of the Company, for the year ending March 31, 2021.