Business

Chola Investment Q1 net rises 10%

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Company cautiously optimistic on growth plans

Cholamandalam Investment and Finance Co. Ltd. (CIFCL), a Murugappa Group company, has reported a 10% growth in its standalone net profit for the first quarter ended June 2019 to ₹314 crore compared with the corresponding year-earlier period, despite tight market conditions. Total income rose to ₹2,030 crore, up 26%, while total disbursements increased by 22% to ₹8,572 crore. Net interest margin grew 16% to ₹943 crore.

Total assets under management stood at ₹62,827 crore, which was higher by 35%, said the company in a statement.

Vehicle finance business clocked a volume of ₹6,940 crore (₹5,715 crore). Disbursals under home equity business stood at ₹1,101 crore against ₹939 crore.

The company had a capital adequacy ratio of 17.16% against the statutory requirement of 15%.

Notwithstanding the tight market conditions, CIFCL continues to demonstrate strong asset quality and has been able to reduce the Stage 3 receivables from 3.57% to 2.97% with a provision coverage of 36.2%, the company said in the statement.

“For the year ahead, despite our continued strong performance across key indicators, we remain cautiously optimistic of our growth plans. We continue to exercise due diligence on opportunities, keeping in mind the turbulent markets,” said Arun Alagappan, executive director, CIFCL.

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Printable version | Dec 13, 2019 9:42:19 PM | https://www.thehindu.com/business/chola-investment-q1-net-rises-10/article28762933.ece

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