Cholamandalam Finance net rises 6% to Rs 95.13 cr

Written by fe Bureau | Chennai | Updated: Nov 1 2014, 05:48am hrs
Cholamandalam Investment and Finance Company, a non-banking financial corporation (NBFC), has said its net profit for the quarter ended September was R95.13 crore, a 6% y-o-y rise from the R89.94 crore it earned in the year-ago period.

Total income increased to R919.22 crore, 14% more than the R808.69-crore figure for the same period last fiscal.

In the second quarter of this fiscal, the company disbursed R2,189 crore in vehicle finance, a 2% rise from the R2,138 crore it disbursed in the year-ago period. The NBFC disbursed R717 crore in home equity loans as against R675 crore in Q2 of 2013-14. Disbursements for new businesses were at R123 crore. Aggregate disbursements grew 7% from R2,827 crore in the last fiscal to R3,028 crore this year, said a statement on Friday.

With the commercial vehicles segment still under stress, the companys overall GNPA stood at 2.6% and the NNPA at 1.4%.

Profit before tax was R144 crore, a 7% increase from R135 crore in the year-ago period.

On September 3, 2014, the company allotted 5 crore 1% compulsorily convertible preference shares (CCPS) of R100 each to Dynasty Acquisition on a preferential basis. The CCPS shall be converted into 12,285,012 equity shares of R10 each at a conversion price of R407 per share (including premium of R397 per share) at the expiry of 12 months from the date of allotment or earlier at the discretion of the board.

The company raised Tier II capital of Rs 42 crore by way of perpetual debt instruments to strengthen its capital adequacy ratio. The capital adequacy ratio (CAR) was at 19.78% as against the regulatory requirement of 15%.

Cholamandalam Securities and Cholamandalam Distribution Services, subsidiaries of the NBFC, together made a profit of R3.93 crore, as against R87 lakh in the Q2 of 2013-14.