Cholamandalam Investment and Finance Company Ltd on Tuesday, reported a 28 percent year-on-year rise in net profit to Rs 726 crore in the first quarter of FY24, the company said in a press release. It reported a net profit of Rs 566 crore in the year-ago period.
The company's assets under management (AUM) rose 40.12 percent on-year to Rs 1.15 lakh crore. The net interest income (NII) for Q1 of FY24 came in at Rs 2,127 crore versus Rs 1,639.6 crore in Q1 of FY23. CNBC-TV18 earlier predicted NII to come at Rs 1,926.4 crore.
The asset quality of the company in the quarter dropped, with stage 3 levels marginally increasing to 3.06 percent, from 3.01 percent in March 2023. The gross non-performing asset (NPA) ratio as per the Reserve Bank of India's (RBI) norms was reduced to 4.30 percent in June 2023 as against 4.63 percent in March 2023, the company said.
Net NPA ratio also dropped to 2.82 percent in June 2023 against 3.11 percent in March 2023. NNPA is below the threshold of 6 percent prescribed by RBI as the threshold for prompt corrective action.
In another development,
Cholamandalam Investment opened the issue of non-convertible debenture (NCD) on July 28. The issue is open till August 10 and the company is set to raise funds worth up to Rs 1,500 crore through this public issue of bonds,
The issue has a base size of Rs 500 crore and a greenshoe option of Rs 1,000 crore. The fund-raising is likely to be carried through bonds of three sets of maturities - 22 months, 37 months, and 60 months.
First Published: Aug 1, 2023 3:54 PM IST
