Chennai, Apr 26th, 2012

Q -4 Performance Highlights:

Q4 has been an extremely good quarter for the Company, with disbursements growing in vehicle finance by 75% and in home equity loans by 37% compared to the same period last year.

The Company disbursed Rs.2370 Cr. in Vehicle Finance (as against Rs.1354 Cr. in Q-4 of 2010–11) and disbursed Rs.448 Cr. in Home Equity loans (as against Rs.326 Cr. in Q-4 of 2010–11). The newly launched Gold Loan disbursed Rs.54 Cr. during the quarter. The aggregate disbursements of the Company for the quarter are Rs.2872 Cr. (as against Rs.1680 Cr. in Q-4 of 2010-11) registering a growth of 71%.

Gross income from operations was Rs.522.51 Cr. (compared to Rs.342.15 Cr. in Q-4 of 2010-11)registering a growth of 53%. During the quarter, the Company sold Rs.408.12 Cr. of vehicle finance assets on a bilateral assignment basis, for which the Company will recognize the gains over the tenure of the transactions.

Profit before tax is Rs.91.38 Cr. (as against Rs.26.46 Cr. in Q-4 of 2010-11) registering a growth of 245%. Profit after tax is Rs.53.86 Cr. (as against Rs.13.48 Cr. in Q-4 of 2010-11) registering a growth of 300%.

Full year ended – Mar 12 – Performance Highlights:

Disbursements in Vehicle Finance assets grew 63% compared to the last year and Home Equity loans grew 24% compared to the last year. The Company disbursed Rs.7306 Cr. in Vehicle Finance assets (as against Rs.4496 Cr. in 2010-11) and Rs.1528 Cr. in Home Equity loans (as against Rs.1235 Cr. in 2010– 11). The disbursement in the newly launched Gold Loan business was Rs.54 Cr. during the year. Aggregate disbursements of the Company for the year ended 31st March 2012, is Rs.8889 Cr. as against Rs.5731 Cr. in 2010 – 11 registering a growth of 55%.

Overall, total assets under management grew by 40% from Rs.10445 Cr. to 14643 Cr.

Gross income from operations was Rs.1767 Cr. (compared to Rs.1202 Cr. in 2010-11) registering a growth of 47%. Income from operations includes gains on assignment for Rs.54 Cr. in 2010 -11. In 2011

– 12 there was no gain on assignment.

For the year ended 31st March 2012, net credit losses for the Vehicle Finance business were 0.37% of average assets and for Home Equity business was 0.23% of average assets.

Profit after tax is Rs.172.54 Cr. for the year (as against Rs.62.18 Cr. for 2010 – 11) registering a growth of 177%.

Financial performance – Summary :

Rs in Cr


Profit & Loss Account


Growth Ratios


Full Yr


Full Yr

Q4 Vs Q4




Disbursement( VF,HE & Gold)







Total Income







Profit before Tax and Exceptional Items







Exceptional Items







Profit before Tax







Profit After Tax







GNPA/Total Assets





NNPA/Total Assets



* Total income of 2010 -11 includes Rs.54 Cr. in on account of gain on assignment and Rs.11.27 Cr. on account of sale and lease of fixed assets as against Rs. Nil in 2011 – 12

The Company has expanded its presence to 375 branches as on 31st March 2012. The additional branches are in Tier III and Tier IV locations across India.

During the Quarter, the Company has received equity share capital aggregating to Rs.212 Cr. from three investors namely Creador I LLC, Multiples Private Equity FII I and Multiples Private Equity fund.

The Company raised Tier II capital of Rs.583 Cr. during the year in the form of perpetual debt instruments and subordinated debt.

With the above Tier I and Tier II capital infusions the capital adequacy ratio stands increased to 18.08% compared to 16.67% in March 2011.

Subsidiaries Performance:

The wealth management business constituting Chola Securities and Chola Distribution Services had made a loss of Rs.0.29 Cr. compared to a profit of Rs.1.19 Cr. in Q – 4 of FY – 11 and a loss of Rs.5.72 Cr in FY-12 compared to a profit of Rs.7.16 Cr in FY -11.

Cholamandalam Factoring Limited made a loss of Rs.4.30 Cr. compared to a loss of Rs.1.59 Cr. in Q – 4 of FY -11 and a loss of Rs.61.29 Cr in FY-12 compared to a loss of Rs.8.16 Cr in FY-11.

Consolidated Results:

The consolidated profit after tax for the period ended 31st March 2012 was Rs.168.99 Cr. as against a PAT of Rs.84.58 Cr. in the previous year registering a growth of 100%.


The Board has recommended a final dividend of Rs.1/- per share (10% on the face value of Rs.10/- per share) to its equity shareholders. This is over and above the interim dividend of 15% (Rs.1.5 per share) approved by the Board and paid to the shareholders in January 2012.

About the Murugappa Group

Founded in 1900, the Rs. 17051 Crores (USD 3.8 billion) (as of 31 March 2011) 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, Construction, Bio-products and Nutraceuticals, the Group has forged strong joint venture alliances with leading international companies like Groupe Chimique Tunisien, Foskor, Cargill, Mitsui Sumitomo and Morgan Crucible. The Group has a wide geographical presence spanning 13 states in India and 5 continents.

Renowned brands like BSA, Hercules, Ballmaster, Ajax, Parry’s, Gromor and Paramfos are from the

Murugappa stable. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees. For more details, visit

For further information, please contact:

R. V. Prasad

External Communications Lead – GCC

Murugappa Group

Phone number: 9840120590

Email ID:

Vinod Kumar / Diya Kinger

Ogilvy PR

Phone number: 9840126179/ 8939623044