Cholamandalam Investment and Finance registers 18% jump in consolidated net profit

CHENNAI: Cholamandalam Investment and Finance, has registered a 18% jump in consolidated net profit at Rs 110 crore for the April-June quarter of the current fiscal. The Murugappa group company had registered a consolidated net profit of Rs 93 crore in the corresponding period of the previous fiscal.
“We were able to keep our loan losses within limits, improve our disbursements and our cost of funds have also moved down 20 bps (basis points) sequentially,” D Arul Selvan, chief financial officer of the company said.(100 basis points=1%).
The company which is looking to raise Rs 7,000 crore during the current fiscal is looking at market borrowings. “We are progressively moving from bank to market borrowings. Many banks have not reduced rates despite rate cuts from the Reserve Bank of India. Bank rates continue to range from 9.75% to 10% whereas NCD (non convertible debentures) and commercial paper are at 8% to 9%,” Arul Selvan said.
At the end of the first quarter of FY 15, the bank borrowings came down to 52% from 62% at the end of the fourth quarter of last fiscal while market borrowings during the same period moved up from 24% to 32%.
The company had made Rs 3,508 crore of disbursements for the quarter under review, up 10%, over Rs 3,188 crore disbursed in first quarter of last financial year, it said.
On a sequential basis, Gross NPA (on five months over due) of the NBFC moved up from 3.12% at the end of March 2015 to 3.33%. Net NPA in the aforesaid period also moved up from 2.03% to 2.08%. “We have moved to provisioning of 150 days and above over, a year ahead of the RBI mandate ,” Arul Selvan said.
In another filing to the stock exchanges, the company said its board has approved reappointment of Vellayan Subbiah as managing director for a period of two years to be effective from August 19, subject to the approval of shareholders.