Cholamandalam investment and finance company posted a net profit of Rs 876 crore, up 28% year on year, in the quarter ended 31st December 2023, from Rs 684 crore in the same quarter last year.
Profit increased because of higher interest income due to strong growth in disbursements. Vehicle finance disbursements grew by 18% at Rs 12,354 crore in the quarter aided by a steady growth in used vehicles.
Their loan against property segment saw a disbursement of Rs 3,409 crore, registering a 51% growth from last year, while the home loan segment disbursed Rs 1,587 crore, recording a 48% growth. This growth was driven by branch expansions into tier 3 and tier 4 locations. Aggregate disbursements increased 27% to Rs 22,383 crore, from Rs. 17,559 crore.
The finance company posted a total Assets Under Management (AUM) 0f Rs. 1.41 lakh crore, up 36% year on year, from Rs. 1.03 lakh crore in the same quarter last year. Gross NPAs reduced to 3.92% of the total loan book down from 5.37% in the previous year. Provisions for NPAs more than doubled to Rs 359 crore from Rs 159 crore a year earlier
Post the results, shares of the company were trading at Rs. 1241.25, 0.5% lower than their previous close.
