Cholamandalam Investment and Finance Company Ltd. disbursed Rs. 3,491 crores in vehicle finance business during the third quarter of the year ended December 31, 2016. This was possible on account of the steady growth in heavy commercial vehicle volumes, and in the car/MUV segment during October 2016. Home equity disbursements were at Rs. 619 crores in the third quarter as against Rs. 882 crores in the same quarter of the previous year. The company’s aggregate disbursements for the quarter were Rs. 4,373 crores as against Rs. 4,260 crores in Q3 of FY16, a growth of 3 per cent.
The consolidated profit after tax for Q3 FY17 is Rs. 163 crores as against Rs. 148 crores in the same quarter of the previous year, registering a growth of 10 per cent, and for the nine months period, a profit after tax of Rs. 498 crores as against Rs. 381 crores as at the close of December FY16, representing a growth of 31 per cent.
Chola’s net income margin (NIM) was 8.4 per cent for the quarter, which has marginally declined when compared to the same quarter of last year. However, the company was able to exit the quarter at a GNPA level of 3.8 per cent at 4 months’ overdue, which is slightly higher than the GNPA at the end of September 2016 at 3.5 per cent.
Operating expenses include one-time provision of Rs. 28 crores, towards estimated VAT liability (tax and interest) in respect of sales of repossessed vehicles during the period 2008-2016 in Maharashtra.
The company PBT-ROTA for Q3 of FY17 was reduced to 3.5 per cent as against 3.6 per cent in Q3 FY16. For the nine-month period, ROTA improved to 3.6 per cent, compared to 3.2 per cent the previous year.
The Board of Directors of the company declared an interim dividend of 35 per cent (Rs. 3.50 per share) on the equity shares of the company, for the year ended March 31, 2017.
