Click here for the Unaudited Financial Results of Q3 FY 2013-14

Chennai, 29 January 2014: During the quarter the disbursements in vehicle finance were flat while disbursements in home equity loans grew by 31% compared to the same period last year.

The Company disbursed 2587 Crore in Vehicle Finance as against 2574 Crore in Q 3 of 2012 – 13 and disbursed 688 Crore in Home Equity loans as against 525 Crore in Q 3 of 2012 – 13. Disbursements from new businesses were 61 Crore for the quarter. The aggregate disbursements of the Company for the quarter are 3336 Crore as against 3113 Crore in Q 3 of 2012 – 13 registering a growth of 7%.

Total Income is 844 Crore compared to 666 Crore in Q 3 of 2012 -13 registering a growth of 27%.

Profit before tax is 140 Crore as against 122 Crore in Q 3 of 2012 -13 registering a growth of 14%. Profit after tax is 92 Crore as against 81 Crore in Q 3 of 2012 -13 registering a growth of 13%.

Period ended 31st December 2013 – Performance Highlights

During the nine months period ended December 2013, disbursements in vehicle finance grew by 9% and disbursements in home equity loans grew by 33% compared to the same period last year. The company disbursed 7333 Crore in Vehicle Finance as against 6742 Crore during the nine months ended 31st December 2012 and disbursed 2024 Crore in Home Equity loans as against 1523 Crore during the nine months ended 31st December 2012. Disbursements from new businesses were 84 Crore for period ended December 13. The aggregate disbursements of the Company for the 9 months ended are 9442 Crore as against 8310 Crore of the same period last year registering a growth of 14%.

Total Income is 2415 Crore compared to 1830 Crore for nine months ended 31st December 2012 registering a growth of 32%.

Profit before tax is 413 Crore as against 328 Crore for nine months ended 31st December 2012 registering a growth of 26%. Profit after tax is 273 Crore as against 221 Crore for the same period in previous financial year registering a growth of 24%

The Company continues to witness portfolio pressure in the Commercial Vehicle business and has taken a prudent approach to portfolio quality management through a combination of aggressive repossession of non-performing assets and conservative provisioning of our repossessed stock.

Financial Performance – Summary

2012-13

 Particulars

2012-13

Q-o-Q Y-o-Y
 Q – III YTD Dec Q – III YTD Dec Growth Growth
 3,113  8,310  Disbursements Total Income 3,366 9,442 7% 14%
 666  1,830 844 2,415 27% 32%
 122  328  Profit Before Tax Profit After Tax 140 413 14% 26%
 81  221 92 273 13% 24%

Portfolio Quality

With a vigorous focus on portfolio quality, the Company contained GNPA at 1.7% and NNPA at 0.7%. Provision coverage is at 58%

Subsidiaries Performance

The subsidiaries made a profit of 3 Crore during the period compared to a loss of 0.29 Crore for nine months ended 31st December 2012.

Consolidated Results

The consolidated profit after tax for the nine months ended 31st December 2013 was 276 Crore as against a PAT of 221 Crore for nine months ended 31st December 2012 registering a growth of 25%.

Interim Dividend

The Board has declared an interim dividend of 2.50/- per share (25% on the face value of 10/- per share) to its equity shareholders for the year ending 31st March 2014 considering the performance year to date.

About Murugappa Group

Founded in 1900, the INR 225 Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including eleven 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, 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 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.