Cholamandalam Investment logs 25% y-o-y jump in Q4 net profit

2 May 2024 , 11:08 AM

Cholamandalam Investment and Finance Company recorded a 24.5% increase in net profit to ₹1,065 Crore for the March quarter, driven by an increase in core operations. The Murugappa Group made a consolidated profit of ₹855 Crore in the same quarter the previous year.

Cholamandalam Investment and Finance Company reported a total income of ₹5,499 Crore for the quarter, up from ₹3,835 Crore the previous year, in a regulatory filing.

Interest income increased to ₹4,938 Crore during the review period, up from ₹3,499 Crore the previous year. Total expenses increased to ₹4,071 Crore from ₹2,672 Crore in the fourth quarter of FY23.

The board recommended a final dividend of 70 paise per share (35% of each share’s face value of ₹2) for the fiscal year ending March 2024, it stated.

On the asset quality front, the company’s gross Non-Performing Assets (NPAs) fell to 3.54% of gross advances as of March 31, 2024, from 4.63% at the end of March 2023.

Net NPAs also fell to 2.32% of advances from 3.11% at the end of 2023. Provision Coverage Ratio increased to 35.18% from 33.77% at the end of March 2023.

Chola started out as an equipment financing company and has since grown into a comprehensive financial services provider that offers vehicle financing, home loans, loan against property, SME loans, Consumer & Small Enterprise Loans (CSEL), Secured Business Personal Loans (SBPL), and a variety of other financial products.

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