Cholamandalam Investment and Finance Co. Ltd., (Chola), the financial arm of Murugappa group, has reported a 32% increase in its standalone net profit for the second quarter ended September 30, to ₹227 crore due to a ‘better product mix and low cost borrowings’.
The company’s total revenue increased 11.43% to ₹1,296 crore. Net interest margin rose to 9.6%. Chola’s aggregate disbursement for the quarter rose 24% to ₹5,492 crore. Disbursements under vehicle finance grew 32% to ₹4,295 crore due to strong growth in heavy and medium commercial vehicles and used vehicles. Home finance disbursement reported an 8% contraction to ₹830 crore. Gross non performing assets stood at 4.46% while net NPAs were 2.89%. The capital adequacy ratio stood at 19.29%.
Subsidiaries Cholamandalam Securities Ltd., Cholamandalam Distribution Services Ltd., and White Data Systems Ltd., recroded profit before tax of ₹1.16 crore against ₹2.17 crore. The drop was due to “expected losses in the start-up business of White Data Systems in the initial years of growth.”