Cholamandalam Investment and Finance Company Limited declares Q3 Results

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.

  • Interim dividend declared – 35% i.e. Rs 3.50 per equity share of Rs 10 each.
  • Profit after tax for Q3 FY17 at Rs 163 Cr, a growth of 12% over Q3 FY16. For the Nine months period, PAT at Rs 499 Cr, a growth of 33% over same period last year.
  • Q3 FY17 disbursements Rs. 4,373 Cr, representing a marginal growth of 3%  over Q3 FY16.
  • 12% growth in Net Income Margin (NIM) during the quarter, compared to Q3 FY16.
  • Brickworks Rating India Private Limited has assigned the credit rating of AA+ for Non-Convertible debentures
  • Gross NPA (on 4 months’ overdue basis) marginally increased to 3.8% in Dec-16 compared to 3.5% in Sep-16 in spite of de-monetisationNPA recognition process continues as per existing norms.


Financial Performance                                                                                                                  

Particulars Q3
FY 17
FY 16

Growth (%)
Dec 16
Dec 15

Growth (%)
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%.

Interim Dividend:

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.

Capital Adequacy:

The capital adequacy ratio (CAR) of the company was at 19.21% as against the regulatory requirement of 15%.

Subsidiaries Performance:

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.

Consolidated Results:

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%.

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