Vehicle finance business lifts Chola’s profit by 29 pc to Rs 1,186 crore

Mumbai: Cholamandalam Investment and Finance Company, the financial services arm of Chennai-based Murugappa Group, on Saturday reported 29 per cent jump in its profit after tax totalling Rs 1,186 crore during 2018-19.

The disbursements were 21 percent higher at Rs 30,451 crore for the entire financial year and 28 per cent up at Rs 8,893 crore for the January to March quarter.

While total income grew by 28 percent to Rs 6,993 crore for the year and Rs 1,894 crore for Q4, profit after tax was up at Rs 1,186 crore for the year, up by 29 per cent year-on-year, and Rs 292 crore for January to March quarter.

Assets under management were up 26 percent at Rs 54,279 crore, the company said in a statement.

The vehicle finance business clocked a volume of Rs 24,807 crore for the year ended March 2019 as against Rs 20,540 crore in the previous year, reporting a growth of 21 percent y-o-y.

The industry faced an adverse impact due to tightening of financing following the liquidity crunch, said Executive Director Arun Alagappan.

“However, at Chola, we did not have any impact having built credible relationships with banks and financial institutions, which resulted in more than adequate funds for the company to disburse.”

The board of directors has recommended a final dividend of 20 percent being Rs 2 per share on equity shares for the year ending March 31. This along with interim dividend takes the dividend to 65 percent being Rs 6.50 per share for the year.