The Board of Directors of Cholamandalam Investment and Finance Company Limited (CIFCL) at their meeting held today approved the appointment of Mr. Arun Alagappan as the Managing Director of the Company for a period of five years effective 15th November 2019.
Mr Arun Alagappan, started his career with GE Capital Services India and after two years of stint there, joined the Murugappa Group in the year 1999. He had earlier served in the various businesses of the Murugappa Group viz., Parryware part of EID Parry India Limited, Tube Products of India and TI Cycles, both part of Tube Investments of India Limited before joining Cholamandalam Investment and Finance Company Limited as Executive Director on the 19th of August 2017. During his tenure the Assets Under Management of CIFCL grew from Rs.37,450 crores to Rs.64,000 crores and profit before tax grew from Rs.634 crores YTD Sep 2017 to Rs.1,006 crores YTD Sep 2019.
Performance Highlights:
- Aggregate disbursements for half year were at ₹15,954 Cr against ₹13,913 Cr in the previous half year of FY 19, registering a growth of 15%. The disbursements for the quarter ended September 19 were at ₹ 7,381 Cr as against ₹ 6,899 Cr for the quarter ended September 18, registering a growth of 7%.
- Vehicle Finance (VF) business has clocked a volume of ₹ 12,736 Cr for the period ended September 2019 as against ₹ 11,323 Cr in the previous year, reporting a growth of 12%. The same numbers for the quarter ended September 19 were at ₹5,796 Cr as against ₹5609 Cr for the quarter ended September 18, registering the growth of 3%. The slow-down in VF disbursement can be explained by the stagnation in the industry volumes during this quarter.
- Home Equity (HE) business disbursed ₹ 2,165 Cr as against ₹ 1,849 Cr for period ended September 2018, marking a growth of 17% Y-o-Y. Disbursements for the quarter ended September 2019 were at ₹ 1,064 Cr as against ₹ 910 Cr for the quarter ended September 18 registering a growth of 17%.
- AUM grew by 23% at ₹ 64,409 Cr in H1 FY20 as compared to ₹ 52,486 Cr in H1 FY19.
- Vehicle Finance (VF) AUM grew by 24% to ₹ 43,901 Cr in H1 FY20 as against ₹ 35,507 Cr in H1 FY19.
- Home Equity (HE) AUM grew by 17% to ₹ 12,612 Cr in H1 FY20 as against ₹ 10,742 Cr in H1 FY19.
- Profits before Tax (PBT) for the half year ended September 2019 were at ₹ 1,006 Cr as against ₹ 898 Cr last year registering a growth of 12%. For the quarter ended September 19, the PBT was at ₹ 523 Cr as against ₹ 460 Cr for the quarter ended September 18, registering the growth of 14%.
- The PBT-ROTA for H1 FY20 is at 3.4% and ROE for H1 FY 20 is at 19%
- Our Branch presence increased to 1029 Branches in H1 FY20.
