CIFCL – Profits up by 21%, Total Income up by 14%

 

Q 3 – Performance Highlights

Chennai, 27 January 2015: The company registered a 21% growth in Profit before tax, clocking rs169 Cr. as against rs140 Cr. in Q 3 of 2013-14.

Profit after tax is rs111 Cr. as against rs 92 Cr. in Q 3 of 2013-14, also registering a growth of 21%.

The Company disbursed rs2290 Cr. in Vehicle Finance as against rs2587 Cr. in Q 3 of 2013-14 and disbursed rs754 Cr. in Home Equity loans as against rs 688 Cr. in Q 3 of 2013-14. The aggregate disbursements of the Company for the quarter are rs3082 Cr. as against rs 3336 Cr. in Q 3 of 2013-14.

Total Income is rs965 Cr. compared to rs844 Cr. in Q 3 of 2013-14 registering a growth of 14%.

There appears to be an improvement in the CV segment, though the improvement is slower than expected. The Company’s overall GNPA is at 2.8% and the NNPA is at 1.5% as on 31st December 2014. The company continues to maintain a cautious approach towards disbursements. As a result, the disbursement was lower by 11 % as compared to the same quarter in the previous year in the vehicle finance business.

Financial Performance – Summary

2013-14 2014-2015
Qtr-III YTD-DEC Qtr-III Q-o-Q YTD – DEC Y-o-Y
Actuals   Actuals Gr (%) Actuals Gr (%)
3,335.86
844.38 
9,441.65
2,414.89
 Disbursements
Total Income
3,081.88
964.71
-8%
14%
9,298.73
2,753.20
-2%
14%
139.56
92.16 
412.62
273.28 
Profit Before Tax
Profit After Tax
168.69
111.29
21%
21%
453.83
299.51
10%
10%

The capital adequacy ratio (CAR) of the company was at 20.92% as against the regulatory requirement of 15%.

The Board of Directors of the Company have declared an Interim dividend out of the profits of the Company for the period ended December 31, 2014 on:

  1. Compulsorily Convertible Preference Shares (CCPS) of rs100 each at the rate of 1% per annum paid proportionately for the period commencing from September 03, 2014, being the date of allotment till March 31, 2015
  2. Equity shares at the rate of 25% being rs2.50 per equity share of rs10 each.

Subsidiaries Performance

The subsidiaries Cholamandalam Securities Limited and Cholamandalam Distribution Services Limited had together made a profit before tax of rs 2.17 Cr. as against rs 0.91 Cr. in Q3 of 2013-14.

Consolidated Results

The consolidated profit after tax is rs 113 Cr. as against rs 93 Cr. in Q3 of 2013-14 registering a growth of 21.5%.

About Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company Limited was incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.

Chola operates from over 579 branches across India with assets under management above INR 25,000 Crores. The subsidiaries of Cholamandalam include Cholamandalam Securities Limited (CSEC) and Cholamandalam Distribution Services Limited (CDSL).The vision of Chola is to enable customers enter a better life. Chola has a growing clientele of over 7.5 lakh happy customers across the nation. Ever since its inception and all through its growth, the company has kept a clear sight of its values. The basic tenet of these values is a strict adherence to ethics and a responsibility to all those who come within its corporate ambit – customers, shareholders, employees and society.

About Murugappa Group

Founded in 1900, the INR 243 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including ten listed Companies traded in NSE & BSE. Headquartered in Chennai, the major Companies of the Group include Carborundum Universal Ltd., Cholamandalam Investment and Finance Company Ltd., Cholamandalam MS General Insurance Company Ltd., Coromandel International Ltd., Coromandel Engineering Company Ltd., E.I.D. Parry (India) Ltd., Parry Agro Industries Ltd., Sabero Organics Ltd., Shanthi Gears Ltd., Tube Investments of India Ltd., and Wendt (India) Ltd.

Market leaders in served segments including Abrasives, Auto Components, Transmission systems, Cycles, Sugar, Farm Inputs, Fertilisers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Mitsui Sumitomo, Morgan Advanced Materials, Sociedad Química y Minera de Chile (SQM), Yanmar & Co. and and Compagnie Des Phosphat De Gafsa (CPG). The Group has a wide geographical presence all over India and spanning 6 continents.

Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Chola, Gromor, Shanthi Gears and Paramfos are from the Murugappa stable. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees.