Cholamandalam Investment and Finance Company on Friday reported a 26% year-on-year growth in its second quarter net profit at Rs 963.05 crore driven by strong growth in interest income.
The financial services arm of the Murugappa Group posted a 40% jump in revenue from operations to Rs 6,226.60 crore in the July-September quarter. Of which, interest income rose 37% to Rs 5,767.96 crore.
Total expenses of the lender also went up by 40% to Rs 4,994.17 crore in the latest quarter. Of this, finance cost stood at Rs 3,055.13 crore compared to Rs 2,205.20 crore in the corresponding quarter of the previous fiscal.
Aggregate disbursements in Q2 FY25 stood at Rs 24,314 crore, registering 13% Y-o-Y growth. Vehicle finance continued to be the largest share of total disbursements at Rs 12,336 crore, followed by Loan Against Property (LAP) business (Rs 4,295 crore), Consumer and Small Enterprise Loans (Rs 3,588 crore) Small and Medium Enterprises Loans (Rs 1,959 crore) and home loans (Rs 1,823 crore).
Total assets of the lender as of September 2024 quarter stood at Rs 1.69-lakh crore, 38% higher than the same quarter of the previous year.
Gross stage 3 assets, loans which have been overdue for more than 90 days, increased sequentially to 2.83% in September quarter compared to 2.62% as of June quarter. In value terms, Gross Stage 3 assets rose to Rs 4,708 crore from Rs 4,123 crore during June quarter.
The Capital Adequacy Ratio (CAR) of the NBFC as of September 30, 2024, stood at 19.50%, as against the regulatory requirement of 15%.
Shares of Cholamandalam Investment closed marginally lower at Rs 1,385.30 on the NSE from the previous day’s close.