Cholamandalam Investment and Finance Company

AUM growth accelerates to 25%

Jan 24, 2020 02:01 IST capital market

Cholamandalam Investment and Finance Company reported strong 22% surge in the consolidated net profit to Rs 389.16 crore in the quarter ended December 2019 (Q3FY2020). The income from operations increased 24% to Rs 2117.39 crore for the quarter ended December 2019, while other income of the company moved up 17% to Rs 171.92 crore. The total income increased 23% to Rs 2289.31 crore for quarter ended December 2019.

Interest expenses rose 25% to Rs 1191.80 crore. Operating expenses increased 27% to Rs 406.34 crore, allowing the gross profits to increase 17% at Rs 691.17 crore. Depreciation galloped 112% to Rs 32.31 crore, while provisions and write-offs jumped 41% to Rs 135.96 crore.

Profit before tax moved up 9% yoy basis at Rs 522.90 crore for quarter ended December 2019. Effective tax rate dipped to 25.6% in quarter ended December 2019 compared with 33.3% in the corresponding quarter of previous year. Net Profit of the company improved 22% to Rs 389.16 crore for quarter ended December 2019.

Book value per share of the company stood at Rs 457.6 per share at end December 2019. The adjusted book value accounting for NNPA stood at Rs 396.8 per share at end December 2019.

Business performance

The disbursements of the company increased 9% to Rs 23429 crore in 9MFY2020 against Rs 21558 crore in 9MFY2019. The disbursements have declined marginally to Rs 7475 crore in Q3FY2020 from Rs 7644 crore in Q3FY2019.

Vehicle Finance (VF) business has clocked a volume of Rs 18685 crore in 9MFY2020 as against Rs 17600 crore in 9MFY2019, recording a growth of 6%, while it has declined to Rs 5949 crore in Q3FY2020 from Rs 6277 crore in Q3FY2019. The slow-down in VF disbursement is due to industry de-growth in Commercial Vehicles segment during this quarter.

Home Equity (HE) business disbursed Rs 3073 crore in 9MFY2020 as against Rs 2,803 crore in 9MFY2019, marking a growth of 10%. Disbursements for the quarter ended December 2019 was at Rs 908 crore as against Rs 954 crore for Q3FY2019.

AUM grew increased 25% to Rs 65992 crore December 2019 from Rs 52591 crore end December 2018.

Vehicle Finance (VF) AUM grew by 19% to Rs 44589 crore end December 2019 as against Rs 37508 crore for end December 2018.

Home Equity (HE) AUM grew by 16% to Rs 13000 crore end December 2019 from Rs 11186 crore end December 2018.

The branch presence of the company has increased to 1073 Branches end December 2019.

Asset Quality

Notwithstanding the tight market conditions, CIFCL continues to maintain strong asset quality with a marginal increase in the Stage 3 receivables from 3.30% in December 2018 to 3.54% in December 2019 (under IND AS) with a provision coverage of 33.0%.

Capital Adequacy

The Capital Adequacy Ratio (CAR) of the company as on 31 December 2019, was at 17.04% as against the regulatory requirement of 15%.

Capital Issue - Preferential Allotment

The Board of directors at their meeting held this afternoon have, subject to the approval of shareholders, approved an Issue of equity shares by way of preferential issue to Cholamandalam Financial Holdings Limited, a promoter entity up to an amount not exceeding Rs 300 crore in one or more tranches at such price in accordance with Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Financial Performance 9MFY2020

For the nine-months ended December 2019 (9MFY2020), the company reported 27% increase in its income from operations to Rs 6070.52 crore compared to corresponding previous year period, while other income of the company increased 16% to Rs 476.54 crore. Total income moved up 26% to Rs 6547.06 crore. Interest expenses increased 33% to Rs 3456.24 crore. Operating expenses galloped 21% to Rs 1136.15 crore. Gross profits increased 17% at Rs 1954.67 crore in 9MFY2020. Depreciation jumped 101% to Rs 83.46 crore. Provisions and write-offs moved up 33% to Rs 340.65 crore. PBT rose 12% to Rs 1530.56 crore. Effective tax rate was lower at 33.93% compared to 34.24% in the corresponding previous year quarter. Net Profit of the company moved up 12% to Rs 1011.27 crore in 9MFY2020.

Cholamandalam Investment and Finance Company: Consolidated Financial Results

 

Particulars 1912 (3) 1812 (3) Var % 1912 (9) 1812 (9) Var % 1903 (12) 1803 (12) Var %
Income from operations 2117.39 1713.82 24 6070.52 4796.09 27 6565.96 5234.38 25
Other Income 171.92 146.76 17 476.54 410.18 16 542.87 324.90 67
Total Income 2289.31 1860.58 23 6547.06 5206.27 26 7108.83 5559.28 28
Interest Expenses 1191.80 950.25 25 3456.24 2602.01 33 3588.14 2656.68 35
Other expenses 406.34 320.77 27 1136.15 940.68 21 1321.18 1142.52 16
Gross profit 691.17 589.56 17 1954.67 1663.58 17 2199.51 1760.08 25
Depreciation 32.31 15.26 112 83.46 41.43 101 56.99 50.86 12
Profit before tax and Provisions 658.86 574.30 15 1871.21 1622.15 15 2142.52 1709.22 25
Provisions and write off 135.96 96.14 41 340.65 255.72 33 311.34 308.41 1
Profit before tax 522.90 478.16 9 1530.56 1366.43 12 1831.18 1400.81 31
Provision for tax 133.74 159.00 -16 519.29 467.91 11 634.59 483.12 31
PAT 389.16 319.16 22 1011.27 898.52 13 1196.59 917.69 30
Minority Interest 0.00 0.00 - 0.00 -1.47 -100 -1.47 -1.61 -9
Net Profit 389.16 319.16 22 1011.27 899.99 12 1198.06 919.30 30
EPS*(Rs) 19.90 16.32 17.24 15.34 12 15.32 11.75
* Annualized on current equity of Rs 156.45 crore. Face Value: Rs 2, Figures in Rs crore, Figures as per Ind AS
Source: Capitaline Corporate Database

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