Chennai, 31st July 2015 : The Board of Directors of Cholamandalam Investment and Finance Company Limited today approved and adopted its Financial Results for the first quarter ended 30th June 2015.
Results at a glance |
Q1 FY16 profit before tax is ![]() |
25% growth in Net Income Margin (NIM). |
Healthy growth in closing assets of 13%. |
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Increase in Gross NPA (on 5 months’ overdue basis) from 3.12% in Mar-15 to 3.33%. |
Profit after tax for Q1 FY16 at ![]() |
In June 2015, CRISIL upgraded its rating on our long-term debt instruments from AA-/Positive to AA/Stable. |
Performance Highlights
Particulars | Q1 FY 16 |
Q1 FY 15 |
Growth (%) |
Net Income Margin (Rs. In Cr.) | 490.23 | 393.69 | 25% ![]() |
Net Income Margin (as % of assets) | 8.5 | 7.6 | |
Total Expenses (as % of assets) | -3.7 | -3.3 | |
Net Credit Losses (as % of assets)* | -1.8 | -1.6 | |
PBT (Rs. In Cr.) | 170.52 | 141.03 | 21% ![]() |
PBT (as % of assets) | 2.9 | 2.7 | |
PAT (Rs. In Cr.) | 110.25 | 93.10 | 18% ![]() |
EPS – in Rs. | 7.57 | 6.50 | 16% ![]() |
ROE – in %# | 13.7 | 16.0 |
*Q1 FY16 on 5 months’ overdue basis; Q1 FY15 on 6 months’ overdue basis
# Drop in RoE on account of infusion of capital of Rs. 500 Cr in Sep-14
We disbursed 2588 Cr in our Vehicle Finance business as against
2320 Cr. in Q1 of FY15. This was a growth of 12%. Home Equity disbursements grew by 16%, from
716 Cr in Q1 FY15 to
831 Cr in Q1 FY16. Chola’s aggregate disbursements for the quarter were
3508 Cr as against
3188 Cr in Q1 of FY15.
Chola’s Net Income Margin (NIM) was 8.5% for the quarter, compared to 7.6% in the same quarter of last year.
We continue to have a laser-sharp focus on collections. The company was able to ride out the traditionally difficult first quarter, with a small increase in GNPA. The GNPA is 3.33% (at 5 months’ overdue) and NNPA is 2.08%.
Chola’s PBT-ROTA for Q1 FY16 improved to 2.9% as against 2.7% in Q1 FY15.
Capital Adequacy
The capital adequacy ratio (CAR) of the company was at 20.56% as against the regulatory requirement of 15%.
Rating Upgrade
In June 2015, CRISIL upgraded the rating on our long term debt instruments from CRISIL AA-/Positive to CRISIL AA/ Stable.
Subsidiaries Performance
The subsidiaries Cholamandalam Securities Limited (CSEC) and Cholamandalam Distribution Services Limited (CDSL) together made a profit before tax of 0.86 Cr in Q1 FY16, as against
2.56 Cr in the same quarter last year.
Consolidated Results
The consolidated profit after tax for Q1 is 111 Cr. as against
96 Cr. in Q1 of FY15, registering a growth of 16%.
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 534 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 269Billion Murugappa Group is one of India’s leading business conglomerates. The Group has 28 businesses including nine 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.,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, Fertilizers, 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 6 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.
Caution Notice
The public is hereby cautioned that it has been brought to our notice that certain unscrupulous persons/agencies are issuing fake sanction letters to customers and getting their signatures in fake loan agreements purporting to be a loan sanction letter & loan agreement of Murugappa Group and such persons /agencies are attempting to extort money by demanding security deposit/processing fee/insurance fee from the gullible customers for processing the required loan etc. In the aforesaid documents, those unscrupulous persons/agencies are also using the registered logo and name of Murugappa Group against law with intent to gain wrongfully by using the goodwill and reputation of the Group.
Please be informed that Murugappa Group is not a separate legal entity and never requires any customers to pay any advance money or deposit for loan sanctioning. Public is cautioned not to rely or act on any such fraudulent sanction/offer made in the name of Murugappa Group without verifying the authenticity of the contents.
Customers who are interested in availing loans may directly contact any of the nearest branch of Cholamandalam Investment and Finance Company Limited (Cholamandalam) a constituent of our group for further details or get in touch with us at 1800 200 4565 or alternatively email at customercare@chola.murugappa.com, or SMS at 9500000312.
MURUGAPPA GROUP