Cholamandalam Investment Q4 net up 184% to ₹690 crore


Cholamandalam Investment and Finance Co.Ltd. (CIFCL) on Thursday reported a 184% increase in its separate net income for the fourth quarter ended March to ₹690 crore, helped by strong signs of recovery in both the auto and mortgage sectors.

During the period, total revenue from operations increased from ₹2,461 billion to ₹2,580 billion. Payouts rose 58% to £12,718 billion, while the net income margin rose 15% to £1,561 billion. Total assets under management grew 8% to 82,904 crore.

All major commercial vehicle OEMs reported double-digit growth in March, supported by a surge in infrastructure projects, growth in the logistics and e-commerce sectors, and easing of financing opportunities, the Murugappa Group company said in a regulatory filing.

Residential home sales, which rebounded sharply, were helped by consumer demand for the postponement of home buying due to COVID-19, she added.

Vehicle finance disbursements rose 43% to ₹8,785 crore, while loans against real estate rose 66% to 1,978 crore. Home loans from ₹5.38 billion to ₹4.41 billion.

CIFCL said it continued to hold a “strong” liquidity position with £5,341bn in cash on hand (including £1,500bn invested in government bonds) with a total liquidity position (including undrawn sanctioned lines) of £13,246bn.

In March, gross non-performing assets rose to 6.8% from 4% and net NPAs more than doubled from 2.2% to 4.75%. CIFCL maintained provisions of ₹564 crore.

On Thursday, the board recommended a dividend of ₹0.70 per share and an increase in total borrowings from ₹75,000 crore to 1,10,000 crore.

The revenue of Cholamandalam Securities Ltd. were ₹40 crore and those of Cholamandalam Home Finance Ltd were 55 crore. Net proceeds from two new investments, Payswiff Technologies Pvt. ltd and Paytail Commerce Pvt. ltd were ₹49 crore and ₹1.5 crore respectively.

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