Cholamandalam Investment & Finance Company Ltd (CIFCL) has recorded a 7 per cent decline in its profit after tax at ₹563 crore for the quarter ended September 30, 2022 when compared with ₹606 crore in a year-ago period.
“Q1 of FY22 was impacted by Covid second wave and lockdowns resulting in higher provisioning. Post release of lockdowns in Q2 of FY22, the company was able to roll-back customers who moved into higher buckets in Q1 of FY22. Hence, Q1 of FY 22 had higher credit loss provisioning at over 3 per cent and NCL (net credit losses) of ₹563 crore and Q2 of FY22 resulted in a meagre 0.37 per cent and NCL of ₹69 crore quarter-on-quarter numbers are not comparable as things were normalized in the current financial year,” according to a statement.
The non-banking finance company (NBFC) from the Murugappa Group reported that its total income grew 22 per cent at ₹3,038 crores when compared with ₹2,481 crore in the year-ago period. Net income was higher at ₹1,697 crore (₹1,403 crore). Loan losses were higher at ₹278 crore as against ₹69 crore in Q2 of previous fiscal.
The aggregate disbursements reported a whopping 68 per cent rise at ₹ 14,623 crore (₹8,706 crore).
In the vehicle finance business, disbursements grew 38 per cent to ₹8,502 crore (₹6,161 crore in Q2 of the previous fiscal). Loan Against Property business also recorded a 38 per cent rise in disbursements at ₹2,246 crore as against ₹124 crore in the year-ago quarter. Home loan business’ disbursements were up 23 per cent at ₹743 crore (₹605 crore).
SME loan business disbursed ₹1,473 crore compared with ₹315 crore in Q2 of the previous fiscal. In Q2 of this fiscal, consumer and small enterprise loans (CSEL) disbursed ₹1,579 crore, while secured business and personal loans disbursed ₹81 crore.
The company’s asset quality as of September 2022, represented by Stage 3 assets stood at 3.84 per cent with a provision coverage of 41.48 per cent as against 4.16 per cent as of June 2022 with a provision coverage of 40.69 per cent. The total provisions currently carried against the overall book is 2.73 per cent as against the normal overall provision levels of 1.75per cent carried prior to the pandemic.
As per revised RBI norms, gross NPA and net NPA stood at 5.84 per cent and 3.99 per cent respectively as of September.
As of September 30, 2022, assets under management stood at ₹91,841 crore compared with ₹75,063 crore as of September 30, 2021.
The Company said it continues to hold a strong liquidity position with a ₹4,841 crore cash balance (including ₹1,500 crore invested in G-sec shown under investments as of September), with a total liquidity position of ₹6,573 crore (including undrawn sanctioned lines). The ALM is comfortable with no negative cumulative mismatches across all time buckets.