For FY14, Cholamandalam Finance reported a net profit of Rs364 crore on higher interest income
Cholamandalam Investment and Finance Company Ltd, (Cholamandalam Finance), a non-banking finance company (NBFC) reported a 19% higher net profit for FY2013-14 mainly on increased revenues, including interest income and growth in its disbursements in home loan segment.
For the 12 months to end-March, Cholamandalam Finance said its net profit increased 19% to Rs364 crore from Rs306.55 crore, while its total revenues, including interest income, grew 28% to Rs3,262.84 crore from Rs2,555.68 crore, a year ago period.
During FY14, Cholamandalam Finance said, its total loan disbursements increased 8% to Rs13,144.22 crore from Rs12,118.27 crore. Its home loan disbursements increased 30% to Rs2,810 crore from Rs2,161 crore. While its vehicle loan disbursements increased 2.49% to Rs10,128 crore from Rs9,882 crore a year ago period.
“The sustained slowdown in the economy and reduction in the freight earning of the borrowers resulted in continued pressure on asset quality. We continue to follow a stringent credit selection approach which is reflected in disbursement growth being relatively lower as compared to the previous year especially in the vehicle finance business,” the lender said in a regulatory filing.
During 2013-14, Cholamandalam Finance made provisions of Rs122 crore, ensuring provision coverage of 60%.
As on 31 March 2014, its capital adequacy ratio (CAR) stood at 17.23%, gross non performing assets ratio (GNPAs) stood at 1.9%. Its net non-performing assets (NNPA) stood at 0.7%.
For the quarter to end-March, Cholamandalam Finance said its net profit grew 6% to Rs90.73 crore from Rs85.76 crore while its total revenues, including interest income, grew 17% to Rs847.95 crore from Rs725.95 crore, same period last year.
As on 31 March 2014, the total number of branches stood at 574 from 518 a year ago period.
Cholamandalam Finance declared a final dividend of Re1 per share.
At 2.29pm Tuesday, Cholamandalam Finance was trading 2.8% down at Rs292 on the BSE, while the 30-share Sensex was also marginally down at 22,513.
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