Murugappa Group NBFC Cholamandalam Investment and Finance Co Ltd has maintained its robust growth momentum during the December 2023 quarter with a strong double-digit increase in net income and loan disbursements, which have helped the company sustain its good growth in bottomline.
The company’s board approved an interim dividend of 65 per cent (₹1.3 per share) for the year ending March 31, 2024, according to a statement.
For the quarter ended December 31, 2023, the company’s standalone profit after tax grew by 28 per cent at ₹876 crore compared with ₹684 crore in the year-ago period.
The company’s net income rose 41 per cent year-on-year to ₹2,580 crore from ₹1,832 crore. Total disbursements for this September quarter grew 27 per cent to ₹22,383 crore (₹17,559 crore).
AUM (assets under management) grew 66 per cent to ₹1,41,143 crore as of December 31, 2023 (₹1,03,789 crore).
Disbursements
In the vehicle finance business, disbursements grew 18 per cent to ₹12,354 crore (₹10,446 crore). The loan against property business recorded a whopping 51 per cent rise in disbursements at ₹3,409 crore against ₹2,255 crore in the year-ago quarter. Home loan business also recorded a good growth of 48 per cent in disbursements at ₹1,587 crore (₹1072 crore).
SME loan business’s disbursements grew 11 per cent at ₹1,981 crore, while consumer and small enterprise loans (CSEL) disbursed ₹2,773 crore (₹1868 crore), an increase of 48 per cent.
The company’s asset quality as of December 2023, represented by stage 3 assets reduced to 2.82 per cent from 2.96 per cent as of September 2023. Gross NPA reduced to 3.92 per cent from 4.07 per cent in the preceding quarter, while net NPA dropped to 2.56 per cent from 2.59 per cent in the preceding quarter.
As of December 2023, the company had a good liquidity position with ₹7,742 crore as cash balance, while it held a total liquidity of ₹9,932 crore (including undrawn sanctioned lines).
For the 9 months ending December 31, 2023, the company’s PAT grew by 30 per cent at ₹2,365 crore against ₹1,813 crore in the year-ago period. Net income was higher by 37 per cent at ₹7,073 crore, while total disbursements grew 40 per cent at ₹63,940 crore.