Cholamandalam reports 43 per cent PAT growth, but asset quality worsens

Cholamandalam Investment and Finance Company reported its quarterly result for the period ended September 30, 2018. 

The company’s Q2FY19 net profit grew by almost 43 per cent to Rs. 305 crore over the corresponding quarter of last year, while its total income during the period surged to Rs 1676 crore, which represented a growth of 24 per cent YoY. 

With consistent growth in HCV and LCV segment, the vehicle finance business clocked a volume of Rs 11,207 crore in Q2FY19 as against Rs. 8,114 crore in corresponding quarter of last fiscal, which represents 38 per cent growth. The a ssets under management grew by 31 per cent to Rs.47,720 crore as against Rs. 36,456 crore in Q2FY18. 

However, GNPAs for the quarter stood at 4.5 per cent as against 2.8 per cent in same quarter of last year. Also, its NNPAs for Q2FY19 stood at 2.9 per cent as against 1.6 per cent in the same quarter of last year. 

The Capital Adequacy Ratio (CAR) of the company as on Q2FY19 was 18.34 per cent.