Cholamandalam Investment reports healthy asset quality
Cholamandalam Investment and Finance Company (CIFC) reported its quarterly numbers for the fourth quarter of the fiscal year 2018-19. The company's net interest income for Q4FY19 grew as much as 17 per cent to Rs. 783.4 crore from the corresponding quarter of the previous year.
CIFC's net profit for the quarter improved marginally to Rs. 291.86 crore from Rs. 285.26 crore in Q4FY18.
Notably, the company's GNPA and NNPA in Q4FY19 reduced to 2.3 per cent and 1.1 per cent from 3 per cent and 1.7 per cent in Q4FY18, respectively. The provision coverage ratio for the quarter was at 49.8 per cent as against 44.2 per cent in Q4FY18. Further, CIFC has been maintaining cash cover at around Rs. 3,000 crore which would help them to manage funds position for the next 3 months.
The Capital Adequacy Ratio of the company as on March 31, 2019 was at a comfortable position of 17.56 per cent.
In terms of the full year 2018-19, the company's disbursements grew by around 21 per cent yoy to Rs. 30,451 crore. Total Income for the year was up by nearly 28 per cent yoy to Rs. 6,993 crore. Net profit for FY19 surged nearly 29 per cent yoy to Rs. 1,186 crore
The company's board of directors have recommended sub-division of equity shares of Rs. 10/- each to five shares of Rs. 2/- each, subject to the approval of shareholders. Further, it has recommended a final dividend of Rs. 2 per share.