Cholamandalam Investment and Finance Co. Ltd. (CIFCL) on Thursday reported a 184% increase in its standalone net profit for the fourth quarter ended March at ₹690 crore, aided by strong signs of recovery in both auto and mortgage industry.
During the period under review, total revenue from operations rose to ₹2,580 crore from ₹2,461 crore. Disbursements rose 58% to ₹12,718 crore, while the net income margin climbed 15% to ₹1,561 crore. Total assets under management grew 8% to ₹82,904 crore.
All major commercial vehicle OEMs reported double-digit growth in March, aided by pickup in infrastructure projects, growth in the logistics and e-commerce sector, coupled with easing of finance options, the Murugappa group firm said in a regulatory filing.
Residential housing sales, which saw a strong rebound, were helped by demand from consumers after deferral of home buying due to COVID-19, it added.
Vehicle finance disbursements grew 43% to ₹8,785 crore, while loans against property rose 66% to ₹1,978 crore. Home loans contracted to ₹441 crore from ₹538 crore.
CIFCL said it continued to hold a ‘strong’ liquidity position with ₹5,341 crore as cash balance (including ₹1,500 crore invested in government securities), with a total liquidity position of ₹13,246 crore (including undrawn sanctioned lines).
As of March, the gross non-performing asset ratio rose to 6.8% from 4% and net NPAs more than doubled to 4.75% from 2.2%. CIFCL carried provisions of ₹564 crore.
On Thursday, the board recommended a dividend of ₹0.70 per share as also an increase in overall borrowing limits from ₹75,000 crore ₹1,10,000 crore.
Revenue from Cholamandalam Securities Ltd. was ₹40 crore and that from Cholamandalam Home Finance Ltd was ₹55 crore. Net revenues from two new investments, Payswiff Technologies Pvt. Ltd. and Paytail Commerce Pvt. Ltd. were ₹49 crore and ₹1.5 crore, respectively.