Cholamandalam posts 21 per cent growth in core product disbursements In 2004-05

Chennai, April 27, 2005: Cholamandalam Investment and Finance Company Limited (Cholamandalam) has posted a growth of 21 per cent in the year 2004-05 in the disbursements of its core products - commercial vehicles, multi-utility vehicles and cars.

Total disbursements for all categories of vehicles were at Rs.1127 crore. Of this, disbursements for Heavy and Light Commercial Vehicles (HCVs & LCVs), which accounted for almost three-fourths of total disbursements, grew by over 45per cent.

The company's gross asset base (including assets securitised) grew by 16 per cent to Rs.1981 crore. The Profit Before Tax and Extraordinary Items (PBT) was Rs.51.56 crore as compared to Rs.46.06 crore for the same period in the previous year, a growth of 12 per cent.

The Board of Directors at its meeting on April 27th, has recommended a dividend of 50 per cent.

Mr. M Anandan, Managing Director said, "Our focus on the commercial vehicle segment has yielded good results and helped our disbursements grow faster than the sale of vehicles in this category - thus improving our market share. The company has had a strong market presence across the country, with the West and North contributing about 60per cent of the business".

"Another gratifying aspect of operations in 2004-05 has been the dynamic management of liabilities using innovative products", he added. "This, along with rigorous cost-management has enabled us to maintain growth in profits in an environment where there is a continuing pressure on yields."

Cholamandalam offers automobile finance in 120 locations across India. The company's capital adequacy ratio stands at a healthy 18.5 per cent as against RBI's requirement of 12 per cent.

Cholamandalam Investment and Finance Company Limited (Cholamandalam) along with its subsidiaries and affiliates offers individual and institutional customers a range of financial services - automobile finance, capital market finance, corporate and mortgage finance, general insurance, mutual funds, securities broking, distribution of investment and insurance products and risk management. Cholamandalam shares are listed on Bombay (BSE) and National (NSE) stock exchanges.

Cholamandalam is part of the Rs.5200 crore (US $ 1 billion) Murugappa Group, a pioneer and market leader in several fields with manufacturing facilities across 12 states. The Murugappa group has a strong presence in abrasives, engineering, bio-products, sanitary ware, sugar, farm inputs, plantations and nutraceuticals. Companies in the group include Carborundum Universal, Coromandel Fertilisers, EID Parry and TI of India.

Disclaimer: Some of the statements included in this Press Release may be forward looking statements made based on management's current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam and its subsidiaries. There can be no assurance that future developments affecting Cholamandalam and its subsidiaries will be those anticipated by management. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are important factors that could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements. Cholamandalam does not intend, and is under no obligation, to update any particular forward-looking statement included in this Press Release.

For further information, please contact:
Mr. M. Anandan
Managing Director
Cholamandalam Investment and Finance Company Limited
I Floor, Dare House
Parry's Corner
2, NSC Bose Road, Chennai 600 001.
Tel: 25307172