Cholamandalam Investment & Finance Company Ltd Q4FY18
Standalone Results Q4FY18: (Rs. in cr)
|Net Profit (adjusted)||291||32.5|
Cholamandalam Investment and Finance Company's (CIFC) revenue for Q4FY18 improved by 24.6% yoy to Rs1,511cr. Its NII came at Rs917.5cr as against Rs675cr, which was higher by 35.8% yoy. Its net profit was above estimates, which came in at Rs291cr against Rs219.5cr in Q4FY17, registering a growth of 32.6% yoy. Its overall GNPA for the quarter came at 2.94% against 3.7% in Q3FY18, a decline of 76bps qoq. Its NNPA for the quarter came in at 1.66% against 2.34% in previous quarter, which declined by 68bps qoq.
- Assets under management grew by 25% yoy at Rs42,879cr.
- Ban on overloading, increase in hub and spoke model , huge demand of dipper and construction vehicles, improving GDP are the reason of growth.
- Aggregate disbursements for the quarter were at Rs8,007cr as against Rs5,213cr yoy, registering a growth of 54% yoy, led by the growth in CV industry.
- Total disbursements for FY18 is ~Rs25,114cr, a growth of 35% yoy, led by growth in Vehicle Finance business division, registering a ~42% growth yoy.
- Marginal cost of borrowing is around 8.2-8.3%.
- The company to leverage securitization cost to reduce cost of fund.
- Increasing demand and hub & spoke model is increasing sale of LCV.
- East & North India is registering higher growth in CV segment.
- The Capital Adequacy Ratio (CAR) of the company as on March 31, 2018 was at 18.4% (Tier I – 13.3% and Tier II ‐5.1%) as against the regulatory requirement of 15%.
- Focus of management is on collection efficiency and technology upgradation.
- CIFC added 15 branches during the quarter and added 170 during FY18, total branches now stand at 873.
- The Board has declared a final dividend of 20% i.e. Rs2/share, for the year ending March 31, 2018. The overall dividend declared for the year ended March 31, 2018 is Rs6.5/share.
Cholamandalam Investment & Finance Company Ltd is currently trading at Rs. 1,663.45, up by 96.6 points or 6.17% from its previous closing of Rs. 1,566.85 on the BSE.
The scrip opened at Rs. 1,558 and has touched a high and low of Rs. 1,714.85 and Rs. 1,548.80 respectively. So far 14,26,638 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.