CHOLAMANDALAM INVESTMENT

A part of the Murugappa group, the company provides all financial services, right from loans to broking and advisory services. For Q4FY15, the company brought down its provisions to Rs.58 crore, down 42% (QoQ) and down 31% (YoY). This helped boost the consolidated net profit, which came in at Rs.136 crore, up 20% sequentially and up 48% YoY. It ended FY15 with a 21% rise in net profit at Rs.444  crore. Disbursements to vehicle loan dropped 8% in FY15 while that to home loans grew 9%. Aggregate disbursements for the quarter were down 4%.

NIM slipped from 8.2% to 8% (QoQ) but YoY, it was up from 7.9%. The company has stated that performance improved due to increase in interest income, substantial increase in Fee & Other Income, and a sustained reduction in interest cost. Collections performance improved through the quarter resulting in roll-forward rates in all buckets dropping consistently and an improved Gross NPA position. The Gross NPAis 3.12% (at 5 month’s overdue) and Net NPA is 2.03%.