Cholamandalam Investment and Finance Company–the financial services arm of the Murugappa group–has said its total disbursements for Q4FY 23 stood at Rs 21,020 crore as against Rs 12,718 crore in the corresponding quarter of last fiscal, logging a growth of 65%.

After it recorded strong Q4 loan growth, the company stock surged 8.25% intra-day to hit 52-week high of Rs 846 amid heavy volumes. The shares closed at Rs 841.40, up by Rs 59.90 or 7.66% on BSE, going up from the previous day’s close of Rs 781.50.

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For the full year of FY23, the company has witnessed a 87% jump in disbursements to Rs 66,532 crore as against Rs 35,490 crore in the previous year, reflecting demand revival for loans in various consumer categories after the Covid-triggered slowdown.

Though there is a low base effect, the disbursements in vehicle finance business grew by 39% to Rs 12,190 crore in Q4 and 56% in FY23 to around Rs 39,699 crore, the company said in a disclosure to stock exchanges informing about the provisional figures.

LAP business disbursements grew by 48% to Rs 2,762 crore in Q4 and 68% to Rs 9,299 crore in the fiscal. Disbursements in home loans grew by 156% at Rs 1,405 crore for Q4 and 102% at Rs 3,830 crore in FY23.

Disbursements in the MSME business stood at Rs 2,104 crore for Q4 and Rs 6,388 crore in FY23, growing at 127% and 232%, respectively.

Disbursements in consumer & small enterprise loan (CSEL) business, which was launched last year, stood at Rs 2,363 crore for Q4 and Rs 6,865 crore in FY23. Disbursements in the SBPL business stood at Rs 196 crore for Q4 and Rs 451 crore in FY23.

In the January to March quarter, the lender’s collection competence on billing at an overall level stood at 130%. The company holds a strong liquidity position, having a cash balance of Rs 5,222 crore, comprising investments worth Rs 1,500 crore in G-sec and Rs 1,600 crore in T-bills.

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Chola had reported a net profit of Rs 684 crore for the third quarter of FY 23 as compared to Rs 524 crore in the corresponding quarter last fiscal, registering a growth of 31% on the back of best-ever disbursals. Total income of the company stood at Rs 3,375 crore, logging a growth of 32% over Rs 2,547 crore in the same period last year.

The company had then said it has delivered best-ever disbursals, collections and profitability in Q3 FY23 while Chola gained market share across product segments in vehicle finance and other business units.

In an interview to FE earlier, Arul Selvan D, president & CFO of the company, said the company expects its newly introduced businesses to contribute 12% to 13% to the total assets under management (AUM) by the end of FY24.

Gaining traction, the new businesses had accounted for 7% of the AUM and 22% of the overall disbursement mix in Q3FY23. Chola had last year launched three new business divisions for consumer and small and medium enterprises segment namely consumer and small enterprise loan (CSEL), secured business & personal loan (SBPL) and SME loan (SME).