Chola Q3 PAT up 28% to Rs 524 crore

Cholamandalam Investment and Finance Company (Chola), the financial services arm of over Rs 41k- crore Murugappa Group, has reported a profit after tax (PAT) of Rs 524 crore for the third quarter of the current fiscal year as against Rs 409 crore in the corresponding quarter of last financial year, registering 28% growth. Total income was flat at Rs 2,530 crore as compared to Rs 2,505 crore in the corresponding quarter last year.

Chola’s aggregate disbursements were at Rs 10,430 crore as against Rs 7,926 crore, with 32% growth. Vehicle finance disbursements were at Rs 7,647 crore as against Rs 6,084 crore, registering an increase of 26%. While loan against property business disbursed Rs 1,763 crore in the quarter under review as against Rs 1,265 crore in the same period last year, logging a growth rate of 39%, the home loan business disbursed Rs 437 crore as against Rs 434 crore.

The company said uptrend in economic indicators like tax collections, power consumptions, vehicle registrations, highway toll collections and e-way bills points toward a broad-based economic revival. This has led to a sharp recovery in Chola’s disbursements and collections during Q3FY22. The positive momentum seen in Q2FY22 accelerated during Q3FY2022 on account of healthy demand during festive seasons boosting auto sales, and improved consumer sentiments leading to healthy demand for mortgage loans.

Chola’s asset quality as at the end of December 2021, represented by Stage 3 assets, stood at 5.85% with a provision coverage of 38.80% as against 6.16% in September-end with a provision coverage of 36.45%. The total provisions currently carried against the overall book is 4% as against the normal overall provision levels of 1.75% carried prior to the Covid-19 pandemic, representing more than twice the normal pre-Covid provision coverage level. The capital adequacy ratio (CAR) of the company was at 19.8% as against the regulatory requirement of 15% while tier-I capital was at 16.8%.