Cholamandalam Investment & Finance Company (CIFCL) has reported a significant increase in its net profit at ₹690 crore for the quarter ended March 31, 2022 when compared with ₹243 crore in a year-ago period.
The company’s total income grew 6 per cent at ₹2,632 crore as against ₹2,478 crore in the year-ago period. Net income margin was higher by 15 per cent at ₹1,561 crore (₹1,358 crore), according to a statement
The aggregate disbursements saw a whopping 58 per cent growth at ₹12,718 crore (₹8,071 crore). The vehicle finance business and Loan Against Property business reported 43 per cent and 66 per cent growth in disbursements in March 2022 quarter.
“The company had delivered its best-ever disbursals, collections, and profitability in Q4 FY22. The stellar performance was aided by strong signs of recovery in both the auto and mortgage industry. All major CV OEMs reported double-digit growth in March’22 aided by pick up in infra projects, growth in logistics and e-commerce sector coupled with easing of finance options. A strong rebound in residential housing sales in the current quarter was aided by demand from consumers after deferral of home buying due to Covid19,” it said.
For the full year ended March 31, 2022, the company’s net profit grew 42 per cent at ₹2,147 crore as compared to ₹1,515 crore. Total disbursements grew 36 per cent at ₹35,490 crore (₹26,043 crore)
In the vehicle finance business, disbursements grew 26 per cent to ₹25,439 crore from ₹20,249 crore in FY21. Loan Against Property business’ (including affordable LAP) disbursements reported significant growth of 66 per cent at ₹5,862 crore (₹3,627 crore). Home loan business disbursed ₹1571 crore as against ₹1,542 crore.
New businesses Consumer and Small Enterprise Loans (CSEL), Secured Business and Personal Loans (SBPL) launched last year and along with Small and Medium Enterprises Loans business made disbursals of ₹2,619 crore in the full year, an increase of 319% y-o-y.
As per revised RBI norms (circular dated Nov 12th, 2021) Gross NPA and net NPA stood at 6.82 per cent and 4.75 per cent respectively, as of March 2022.
The Board of Directors of the company has recommended a dividend of ₹ 0.70 per share (35%). This is in addition to the interim dividend of ₹1.30 per share (65%) for 2021-22 declared earlier.
As of March 31, 2021, the company held a strong liquidity position with ₹5341 crore as cash balance (including ₹1,500 crore invested in Gsec shown under investments), with a total liquidity position of ₹13,246 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 to ₹82,904 crore as of March 2022, (₹76,518 crore as of March 2021).