New Delhi, January 25 2017: The Board of Directors of Cholamandalam Investment and Finance Company Limited today approved its unaudited financial results for the quarter and nine months ended 31st December 2016.
|Net Income Margin (Rs. In Cr.)||610.00||542.98||12%||1763.67||1539.52||15%|
|PBT (Rs. In Cr.)||250.92||220.94||14%||767.98||574.61||34%|
|PAT (Rs. In Cr.)||162.52||145.70||12%||499.19||376.42||33%|
|EPS – in Rs.||10.40||9.33||11%||31.96||25.06||28%|
|Net Income Margin (as % of assets)||8.39%||8.77%||8.38%||8.54%|
|Total Expenses (as % of assets)||-3.56%||-3.47%||-3.50%||-3.53%|
|Net Credit Losses (as % of assets)*||-1.38%||-1.73%||-1.22%||-1.82%|
|PBT (as % of assets)||3.45%||3.57%||3.65%||3.19%|
|ROE – in %||15.8%||16.70%||17.0%||14.9%|
*Q3 FY 17 and Q3 FY16 is on 4-months overdue basis.
The one-time provision created in Mar’16, on a prudent basis, to meet the 90 days provisioning norms to be complied by Mar’18, has been retained as standard assets provision.
Chola disbursed Rs 3491 Cr in our Vehicle Finance business as against Rs 3245 Cr. in Q3 of FY16. This was possible on account of steady growth in Heavy Commercial Vehicle Volumes, and in Car/MUV segment during Oct 2016. Home Equity disbursements were at Rs 619 Cr in Q3 FY17 as against Rs 882 Cr in Q3 FY16. Chola’s aggregate disbursements for the quarter were Rs 4,373 Cr as against Rs 4,260 Cr in Q3 of FY16, a growth of 3%.
Chola’s Net Income Margin (NIM) was 8.4% for the quarter, which has marginally declined when compared to the same quarter of last year.
Chola was able to exit the quarter at a GNPA level of 3.8% at 4 months’ overdue, which is slightly higher than the GNPA at the end of Sep 16 (3.5%).
Operating Expenses include one-time provision of Rs. 28 crs, towards estimated VAT liability (tax and interest) in respect of sale of repossessed vehicles during the period 2008-2016 in Maharashtra. Demand in this regard is yet to be raised and will be contested.
Chola’s PBT-ROTA for Q3 FY17 reduced to 3.5% as against 3.6% in Q3 FY16. For the Nine month period, ROTA improved to 3.6%, compared to 3.2% in the previous year.
The Company has seen flat disbursements when compared to the previous quarter due to the overall economic slowdown. Delinquencies in early buckets have increased owing to the temporary cash crunch of borrowers. However, the Company continued to adhere to the existing Board approved provisioning norms which is at 120 days, without taking shelter under the RBI circular for deferment of NPA. Thus, net credit losses of the company for the current quarter is at 1.4%.
The Board of Directors of the Company declared an Interim dividend of 35% (Rs 3.50 per share) on the equity shares of the Company, for the year ending March 31, 2017.
The capital adequacy ratio (CAR) of the company was at 19.21% as against the regulatory requirement of 15%.
The subsidiaries together made a profit before tax of Rs 0.91 Cr in Q3 FY17, as against Rs 3.11 Cr in the same quarter last year. For the Nine months period, the subsidiaries made a profit before tax of Rs 5.13 Cr, as against Rs. 6.14 Cr in YTD December FY16.
The consolidated profit after tax for Q3 FY17 is Rs 163 Cr. as against Rs 148 Cr. in Q3 of FY16, registering a growth of 10% and for the Nine months period, made a profit after tax of Rs 498 Cr, as against Rs. 381 Cr in YTD December FY16, recording a growth of 31%.