New Delhi, Jan 25 Cholamandalam Investment and Finance Company today reported 12 per cent increase in consolidated net profit at Rs 163.38 crore for the third quarter of 2016-17 financial year.
The company had reported a net profit of Rs 148 crore in the October-December quarter of the previous fiscal.
"Total income has increased to Rs 1,184.44 crore for the quarter ended December 31, 2016, from Rs 1,060.09 crore for the same quarter a year ago," the company said in a regulatory filing.
On standalone basis, net profit increased by 11.5 per cent to Rs 162.52 crore in October-December from Rs 145.70 crore a year ago, while income increased by a similar margin to Rs 1,175.76 crore in the period from Rs 1,053.90 crore in October-December, 2015.
Disbursements rose by 3 year-on-year to Rs 4,373 crore during October-December period of 2016-17. It disbursed Rs 3,491 crore for vehicle financing, up from Rs 3,245 crore in the December quarter of 2015-16.
"This was possible on account of steady growth in heavy commercial vehicle volumes, and in car/MUV segment during October 2016. Home equity disbursements were at Rs 619 crore in the third quarter of 2016-17 as against Rs 882 crore in year ago period," the company said in a statement.
The net income grew by 12 per cent to Rs 610 crore during the quarter, from Rs 542.98 crore a year earlier.
The company declared an interim dividend of 35 per cent of Rs 3.50 per equity share for the quarter.
The net income margin for the quarter was 8.4 per cent, marginally down from the year ago's 8.77 per cent.
The company said it was able to exit the quarter at a gross non-performing asset (GNPA) level of 3.8 per cent at 4 months' overdue, which is slightly higher than the GNPA at the end of September 2016 (3.5 per cent).
Shares of the company closed 3.55 per cent higher at Rs 1,045.80 apiece on BSE today.
Mumbai, Jan 25 Chennai-based financial services firm Cholamandalam Investment and Finance today reported a 12 per cent growth in net profit at Rs 163 crore in the quarter to December, pulled down by the note-ban disruption that led to lower disbursements and a rise in bad loans.
In the September quarter of this fiscal year, the company's post-tax profit had jumped 42 per cent to Rs 171 crore from Rs 120 crore in the year ago quarter.
"Demonetisation has its effect on the disbursements. There was an impact on all of our portfolios during the quarter," Executive Vice-President and Chief Financial Officer Arul Selvan told in a post-earnings concall from Chennai.
The aggregate disbursals for the third quarter ended December 31 grew only 3 per cent to Rs 4,373 crore from Rs 4,260 crore last year, he said, while adding in the September quarter the same had grown 21 per cent.
The company disbursed Rs 3,491 crore in vehicle finance business as against Rs 3,245 crore last year same period. Home equity disbursements were at Rs 619 crore as against Rs 882 crore.
Net income margin stood at 8.4 per cent for the quarter as against 8.77 per cent last year.
Gross non-performing assets rose to 3.85 per cent from 3.5 per cent in the September quarter.
Selvan said gross NPA numbers are like to be better in the fourth quarter with availability of cash, higher usage of PoS machines and debit cards.
"We expect gross NPA may be below 3.5 per cent in the fourth quarter."
The company made a one-time provision of Rs 28 crore towards estimated VAT liability in respect of sale of repossessed vehicles during the period 2008-2016 in Maharashtra.
The capital adequacy ratio was at 19.21 per cent as against the regulatory requirement of 15 per cent.
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds.