Chennai:The Murugappa Group on Tuesday said it recorded a 9% growth in 2015-16 to reach a revenue of Rs.29,470 crore. The growth was largely driven by its finance business, the Chennai-based conglomerate said.
That will continue, said an executive.
“Financial services sector will continue to maintain the momentum,” said A.Vellayan, executive chairman, Murugappa Group.
While the Cholamandalam Investment and Finance Co. Ltd (CIFCL) registered sales of Rs.4,214 crore (a 13% growth over the previous year) during the financial year , Cholamandalam MS General Insurance Company Ltd posted a sales of Rs.2,452 crore (30% growth).
CIFCL’s disbursements grew by 32 %.
“The Non-Banking Finance Companies (NBFC) sector is seeing good growth. There is clearly a situation that there is pressure on banks because of their NPA (non performing assets) situation. Therefore, there is an opportunity for the NBFCs to grow,” said Vellayan.
Last week, the Reserve Bank of India allowed NBFCs to provide takeout financing to projects, an option so far available to only banks. Read here
The group also earned a one-time income of Rs. 883 crore on account of 14% stake sale in Cholamandalam MS General Insurance Company.
The Murugappa Group’s earnings before Interest, Taxes, Depreciation and Amortization (EBITDA), a measure of operating profit, grew 4% over the previous year to Rs.3,035 crore.