Cholamandalam Investment and Finance Co. Ltd., a Murugappa Group firm, reported a marginal increase of 2.3% in its standalone net profit for the fourth quarter ended March 2019 to ₹292 crore from ₹285 crore a year earlier, despite a challenging period faced by the industry.
Total income grew 29.46% to ₹1,885 crore and disbursements grew 11% to ₹8,893 crore. “We have been consistent in delivering growth over 25% in Assets Under Management, total income and net profit across all major parameters. The asset quality has improved further this year and net NPA is at an all-time low of 1.1%,” said Arun Alagappan, executive director. “In the year, the industry faced adverse impact following the liquidity crunch. However, we did not have any impact having built credible relationships with banks and financial institutions, which resulted in more than adequate funds for the company to disburse. Further the company has been maintaining cash cover at around ₹3,000 crore to manage funds position for the next 3 months,” he said.
D. Arul Selvan, CFO, said the vehicle finance business clocked 21% growth for the year to ₹24,807 crore from ₹20,540 crore. Disbursements under the home equity business grew 21% to ₹3,837 crore. As of March 2019, CIFCL had capital adequacy ratio 17.56% against the statutory requirement of 15%. Gross NPAs declined from 3% to 2.3%, while net NPAs went from 1.7% to 1.1%.
The board recommended a final dividend of 20%, accounting for total dividend of 65% for 2018-19.
The board also recommended sub-division of equity shares of ₹10/- each to five shares of ₹2/- each.
