Cholamandalam DBS Finance Limited, a joint venture between Rs.8500 crore Murugappa Group and DBS Bank Singapore, has posted an impressive performance for the year ended 31st March 2008, with a Profit Before Tax and revenue increase of 92% and 118%respectively.

The company has reported a higher Profit After Tax of Rs. 59.37 Crores for the year ended 31st March 2008 as compared to Rs. 31.02 Crore, last year. The total income was higher at Rs. 891.73 Crores as compared to Rs. 409.14 Crores in the previous year.

The consolidated Profit Before Tax (PBT), including all subsidiaries, is higher by 72% at Rs. 78.17 Crores as compared to Rs. 45.55 Crores last year. The Profit After Tax (PAT) was up by 73% at Rs. 47.33 Crores as compared to Rs. 27.39 Crores for the previous year.

The company continued to improve it’s performance and profitability across businesses despite volatile market situations. The improved profitability has been mainly due to operating efficiencies, change in product mix and high cross sell initiatives.

The fourth quarter results recorded a growth of 67% in Revenue over the corresponding period last year. The revenue stands at Rs.267 Crores as against Rs.160 Crores during the same period in the previous financial year. The Profit Before Tax as Rs.16.58 Crores in the quarter ended March 08 as compared to Rs. 23.61 Crores last year. This includes Rs. 4.63 Crores provision on diminution in mark-to-market value of foreign currency derivative transactions. The consolidated revenue, including all subsidiaries, for the quarter is at Rs.282 Crores as compared to Rs. 165 Crores during the same period last year and the Profit Before Tax stands at Rs. 9.55 Crores as compared to Rs.21.26 Crores during the same period last year.

The company’s managed asset base increased to Rs. 8077 Crores from Rs. 4485 Crores of the previous year backed by a strong retail disbursement growth of 94%.

The Board of directors also recommended a dividend payout of 40% during the board meeting held on 25.04.08.

Speaking on the occasion, Mr. Atul Pande, Managing Director said “Our endeavor to become a retail financial services company has ensured that our revenue model is now well diversified across many product segments. We are now entering into the consolidation phase in our new product launches in the consumer finance space. We look forward to another year of profitable growth and building our model further. Our vehicle finance and corporate finance business have continued to deliver excellent results in market and are poised to grow even further.”

Sourced From: IPAN