Records ₹ 685-Cr Consolidated PAT For Q3 FY 23
Chola says continues to hold a strong liquidity position with ₹ 7,396 Cr as cash balance.
CHENNAI, Jan 31 (The CONNECT) – Cholamandalam Investment and Finance Company Limited (Chola) has delivered best-ever disbursals, collections, and profitability in Q3 FY23. Chola has gained market share across product segments in Vehicle Finance and other business units, the company said.
The Board of Directors of the Company approved the payment of Interim dividend of 65% being ₹ ₹ 1.30 per share on the equity shares of the Company, for the year ending March 31, 2023.
Sales of commercial vehicles are expected to come close to the pre-pandemic peak of over a million units in FY23 due to improved fleet utilizations, strong replacement demand and pick-up in road construction projects across the country. Despite high inflation and high interest rates, strong festive season sales and workforce returning to metro cities has helped drive growth. The housing market has also been very strong.
Performance Highlights:
- Aggregate disbursements in Q3 FY 23 were at ₹ 17,559 Cr as against ₹ 10,430 Cr in Q3 FY 22 with a growth of 68%. Disbursements for YTD Dec 2022 were at ₹ 45,512 Cr as against ₹ 22,772 Cr in the previous year registering growth of 100% Y-on-Y.
- Vehicle Finance (VF) disbursements were at ₹ 10,446 Cr in Q3 FY 23 as against ₹ 7,647 Cr in Q3 FY22, registering a growth of 37%. Disbursements for YTD Dec 2022 were at ₹ 27,509 Cr as against ₹ 16,654 Cr in the previous year, for a growth of 65% Y-o-Y.
- Loan Against Property (LAP) disbursed ₹ 2,255 Cr in Q3 FY 23, as against ₹ 1,661 Cr in Q3 FY 22, a growth rate of 36%. Disbursements for YTD Dec 2022 were at ₹ 6,537 Cr as against ₹ 3,666 Cr in the previous year, for a growth of 78% Y-o-Y.
- Home Loan (Affordable HL and Affordable LAP) disbursed ₹ 1,072 Cr in Q3 FY 23, as against ₹ 539 Cr in Q3 FY 22 registering growth of 99%. Disbursements for YTD Dec 2022 were at ₹ 2,425 Cr as against ₹ 1,347 Cr in the previous year, resulting in a growth of 80% Y-o-Y.
- Small and Medium Enterprises Loans (SME) disbursed ₹ 1,782 Cr in Q3 FY 23, registering 273% growth over ₹ 478 Cr in Q3 FY 22. Disbursements for YTD Dec 2022 were at ₹ 4,284 Cr as against ₹ 997 Cr in the previous year, resulting in a growth of 330% Y-o-Y.
- Consumer and Small Enterprise Loans (CSEL) disbursed ₹ 1,868 Cr and ₹ 4,501 Cr in Q3 and and nine months ending in FY 23.
- Secured Business and Personal Loan (SBPL) disbursed ₹ 137 Cr and ₹ 255 Cr in Q3 and nine months ending in FY 23.
- Assets under management as of 31st Dec 2022 stood at ₹ 103,789 Cr as compared to ₹ 79,161 Cr as of 31st Dec 2021.
- PBT-ROA for Q3 FY 23 was at 3.8% and for YTD Dec 22 was at 3.6% which was at similar levels in YTD Dec 21.
- ROE for the YTD Dec 22 was at 19.1 % as against 18.9% in previous year.
- The Company continues to hold a strong liquidity position with ₹ 7,396 Cr as cash balance as at end of December 2022 (including Rs 1500 cr / Rs 1700 cr invested in Gsec / TBill shown under investments), with a total liquidity position of ₹ 10,104 Cr (including undrawn sanctioned lines). The ALM is comfortable with no negative cumulative mismatches across all time buckets.
- Consolidated Profit After Tax (PAT) for Q3 FY 23 was ₹ 685 Cr as against ₹ 528 Cr in Q3 FY 22 and for YTD Dec 22 was ₹ 1,810 Cr as against ₹ 1,467 Cr previous year with a growth of 23%.
Asset Quality: CIFCL asset quality as at end of December 2022, represented by Stage 3 assets stood at 3.51% with a provision coverage of 40.96%, as against 3.84% as at end of September 2022 with a provision coverage of 41.48%. The total provisions currently carried against the overall book is 2.45% as against the normal overall provision levels of 1.75% carried prior to the Covid-19 pandemic.
The Capital Adequacy Ratio (CAR) of the company as on 31st December 2022, was at 17.75% as against the regulatory requirement of 15%. Tier-I Capital was at 15.12%.
