Cholamandalam Investment and Finance Co Ltd announced its second quarter results on November 2, revealing a robust performance for the financial period. The company reported a 35% increase in its net profit at ₹762.49 crore, compared to the year-ago period. The net profit clocked a 5% sequential growth.
Total income soared 51% year-on-year (YoY) to ₹3,038 crore, the non-banking finance company said in a release.
Cholamandalam Investment and Finance Co Ltd also saw a surge in disbursements during the July-September quarter. The company disbursed a total of ₹21,542 crore, up 47% from ₹14,623 crore YoY. This trend continued for the first half of the current financial year, with disbursements reaching ₹41,557 crore, a substantial 49% YoY growth.
Notably, the vehicle finance (VF) segment played a significant role in this growth, with disbursements of ₹11,731 crore in Q2FY24, up from ₹8,502 crore in Q2FY23. Meanwhile, the loan against property (LAP) business also added to the positive figures, disbursing ₹3,192 crore in Q2FY24, compared to ₹2,246 crore in Q2FY23, representing a growth rate of 42%.
The company's assets under management (AUM) increased 46% YoY to ₹1.34 lakh crore, up from ₹91,841 crore.
In terms of asset quality, Cholamandalam Investment and Finance Co Ltd made notable improvements in the July-September quarter. The level of stage three assets decreased to 2.96% as of September 2023, compared to 3.06% at the end of June 2023.
Gross non-performing assets (NPAs), as per RBI norms, decreased to 4.07% in September 2023, down from 4.30% in June 2023. Additionally, net NPAs dropped to 2.59% in September 2023 from 2.82% in June 2023.
As of September 30, 2023, the company's capital adequacy ratio (CAR) stood at 16.62%, exceeding the regulatory requirement of 15%. The Tier 1 capital was at 14.66%, and Tier 2 capital at 1.96%. With the capital raise, the CAR is expected to rise above 20% as of October 2023.
