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Last Updated : Oct 30, 2018 09:43 PM IST | Source: PTI

Cholamandalam Q2 net up 43% on higher loan growth

The financial services company had reported a net profit of Rs 204 crore in the same period last year.

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Cholamandalam Investment and Finance reported a 43 percent year-on-year jump in standalone net profit to Rs 305 crore in the quarter ended September, helped by higher loan growth and decline in loan loss provision.

The financial services company had reported a net profit of Rs 204 crore in the same period last year.

Total income grew by 24 percent to Rs 1,676 crore in the period, against Rs 1,350 crore last year.


"Better operating expenses, reduction in loan loss provision and higher loan growth contributed to the profit during the quarter," the company's executive vice-president and chief financial officer, Arul Selvan, said.

Its disbursement grew by 34 percent to Rs 6,899 crore, from Rs 5,492 crore in the second quarter of the FY18.

Loans in the vehicle finance segment grew by 38 percent to Rs 5,542 crore, while home equity disbursement rose by 18 percent to Rs 910 crore.

Gross non-performing asset (NPA) during the quarter improved to 3.4 percent, from 5.1 percent last year.

Selvan said the cost of borrowing of the company in the quarter stood at 8.2-8.3 percent, and sees funding cost to increase by 50-60 basis points going ahead, following the present liquidity crisis in the system.

The firm raised Rs 2,000 crore through bank loans in September, which will take care of its funding requirement till December, he said.

The company is also looking to raise Rs 2,500 crore through a combination of bank loans and overseas funding, including masala bonds, added Selvan.

Its scrip ended 1.70 percent down at Rs 1,245.95 on BSE, against 0.52 percent decline in the benchmark.
First Published on Oct 30, 2018 09:28 pm