Mumbai: Cholamandalam Investment and Finance Co. Ltd’s fiscal first quarter net profit rose 50%. Net profit increased to Rs.166 crore in the June quarter from Rs.110 crore a year ago.
Net interest margin stood at 8.4% for the quarter, one basis point lower than last year. One basis point is one-hundredth of a percentage point.
Income from operations as on 30 June stood at Rs.1,108.47 crore, compared with Rs.985.84 crore a year ago, whereas interest expenses increased marginally to Rs.548.10 crore for the June quarter from Rs.495.78 crore last year.
Loan losses declined to 1.2% for the first quarter, compared with 1.8% a year ago.
“Gross non-performing assets (NPA) stood at 3.6% on four months’ basis, compared with 3.3% last year. Usually, June quarter NPA is on the higher side as people tend to pay excess payments in the earlier quarter (year-end) to avoid defaults. “Percentagewise, both vehicle finance and home equity contribute equally to NPA but in absolute terms, vehicle finance contribution is more as it forms 68% of total loan portfolio,” said Arul Selvan, executive vice-president of Cholamandalam.
Provisions stood at Rs.80.37 crore in the April-June quarter in comparison with Rs.106.91 crore a year ago. “Provisions have come down as we are collecting money regularly in the vehicle finance segment since the economy has recovered compared with two years ago,” said Selvan.
The capital adequacy ratio of the company was at 18.73% as on 30 June.
Loan disbursements for the June quarter stood at Rs.4,561 crore, 30% higher than last year’s figure of Rs.3,508 crore.