Chennai, January 18th, 2013: Q3 has been a good quarter for the Company, with disbursements in vehicle finance growing by 34% and disbursements in home equity loans growing by 43% compared to the same period last year.

The Company disbursed Rs.2574 Cr. in Vehicle Finance as against Rs.1915 Cr. in Q 3 of 2011 – 12 and disbursed Rs.525 Cr. in Home Equity loans as against Rs.368 Cr. in Q 3 of 2011 – 12. Gold Loan disbursements were Rs.14 Cr. for the quarter as against Rs.0.5 Cr. in Q3 of 2011 – 12. The Company launched its home loan business during the later part of the quarter and disbursed Rs.0.60 Cr. in this regard. The aggregate disbursements of the Company for the quarter are Rs.3114 Cr. as against Rs.2283 Cr. in Q 3 of 2011 – 12 registering a growth of 36%.

The Company has obtained approval from the Board to raise Tier I capital to an extent of Rs.300 Cr. on private placement basis including by way of qualified institutional placement (QIP). The postal ballot seeking approval of the shareholders for the issue is in progress.

Total Income is Rs.666 Cr. compared to Rs.471 Cr. in Q 3 of 2011 -12 registering a growth of 41%.

Profit before tax is Rs.122 Cr. as against Rs.69 Cr. in Q 3 of 2011 -12 registering a growth of 77%. Profit after tax is Rs.81 Cr. as against Rs.41 Cr. in Q 3 of 2011 -12 registering a growth of 98%.

YTD December – Performance Highlights

The Company disbursed Rs.6742 Cr. in Vehicle Finance as against Rs.4937 Cr. in YTD Dec 11 and disbursed Rs.1523 Cr. in Home Equity loans as against Rs.1080 Cr. in YTD Dec 11. Gold Loan disbursements were at Rs.45 Cr. as against Rs.0.5 Cr. in YTD Dec 11. The newly launched home loan business vertical disbursed Rs.0.6 Cr. The aggregate disbursements of the Company for the period ended Dec 12 is Rs.8311 Cr. as against Rs.6017 Cr. in YTD Dec 11 registering a growth of 38%.

Total Income is Rs.1830 Cr. compared to Rs.1266 Cr. in YTD Dec 11 registering a growth of 45%.

Profit before tax is Rs.328 Cr. as against Rs.199 Cr. in YTD Dec – 11 registering a growth of 65%. Profit after tax is Rs.221 Cr. as against Rs.119 Cr. in YTD Dec – 11 registering a growth of 86%.

Financial Performance – Summary 

2011-12

Particulars

2012-13

Growth %

Q-3

YTD Dec-11

Q – 3 YTD Dec-12 Q 3 Vs Q 3 YTD Vs YTD

2,283

6,017 Disbursements

3,114

8,311 36% 38%
471 1,266 Total Income 666 1,830 41% 45%
69 221 Profit Before Exceptional Items 122 328 78% 49%
(22) Exceptional Items
69 199 Profit Before Tax 122 328 78% 65%
41 199 Profit After Tax 81 221 98% 86%
  • The Company has expanded its presence to 506 branches as on 31st December 2012 compared to 375 as on 31st March 2012. The additional branches are in Tier III and Tier IV locations across India.

  • The Company raised Tier II capital of Rs.593 Cr. during the period ended 31st December 2012 by way of subordinated debt and perpetual debt instruments to strengthen its capital adequacy ratio.

  • Capital adequacy ratio stands increased to 18.12% compared to 17.78% in Dec 2011.

Subsidiaries Performance

The wealth management business constituting Chola Securities and Chola Distribution Services had made a loss of Rs.0.13 Cr. during the period ended Dec 2012 compared to a loss of Rs.5 Cr. in YTD Dec 11.

Cholamandalam Factoring Limited (CFACT) made a profit of Rs.1 Cr. during the period ended 31st Dec 2012 compared to a loss of Rs.57 Cr. in YTD Dec 11.

Consequent to the approval of the Boards of both the companies for amalgamation of CFACT with the Company, CFACT has filed the Scheme of Amalgamation and other relevant applications with Hon’ble High Court of Judicature at Madras for necessary Orders.

Consolidated Results

The consolidated profit after tax for the period ended 31st December 2012 was Rs.221 Cr. as against a PAT of Rs.108 Cr. in the previous year registering a growth of 104%.

Others

The Board has recommended an interim dividend of Rs.2.50/- per share (25% on the face value of Rs.10/- per share) to its equity shareholders.

About Murugappa Group

Founded in 1900, the Rs. 22314 Crores (USD 4.4 billion) Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including eight listed Companies actively 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., Tube Investments of India Ltd., and Wendt (India) Ltd.

Market leaders in served segments including Abrasives, Auto Components, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, the Group has forged strong alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Cargill, Mitsui Sumitomo, Morgan Crucible and Sociedad Química y Minera de Chile (SQM). The Group has a wide geographical presence spanning 13 states in India and 5 continents.

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