Murugappa Group
Key Financial Results(Q2 and H1 FY 23-24):
- Disbursements for the quarterw as Rs 21,542 Cr (Up by 47%) and for the half year Rs 41,557 Cr (Up by 49% YoY)
- Total AUM at Rs 1,33,775 Cr (Up by 46% YoY)
- Net Income for the quarter was Rs 2,367 Cr (Up 39% YoY) and forthe half year Rs 4,493 Cr (Up 35% YoY)
- PAT for the quarter was ₹ 762 Cr (Up by 35%) and for the half year ₹ 1,489 Cr (Up by 32% YoY)
CHENNAI, 2nd NOVEMBER, 2023 (GPN): The Board of Directors of CIFCL today approved the unaudited financial results for the quarter and half year ended 30th September 2023.
Highlights:
Growth in Disbursements and AUM for Chola was robust in Q2, due to all round growth in demand.
- Pickup in replacement demandfrom end user segments in the auto sector supportedgrowth for Vehicle Finance.
- LoanAgainst Property business witnessed a healthyrevival due to growth in demand from SME segments.
- Homeloans continued to registerabove average growth due to revivalin earnings of Self employed non-professionals.
- The new segments of SME, CSEL and SBPL also continued to register growth though on a smaller base.
In Q2, CIFCL launched a composite QIP issue of equity shares (Rs 2,000 crores at a price of Rs 1180 per share) and compulsorily convertible debentures (Rs 2,000 crores at a face value of Rs 100000), overall aggregating to Rs 4,000 crores. The funds from the investors were received in the first week of October 23 and the allotment has been since completed on 5th October 2023.
Performance Highlights:
Rs in Cr.
|
Particulars |
Q2 FY 23 | Q2 FY 24 |
Growth (Y-o-Y) |
YTD Sep-22 |
YTD Sep-23 |
Growth (Y-o-Y) |
|
Disbursements AUM |
14,623 91,841 |
21,542
1,33,775 |
47% 46% |
27,953 91,841 |
41,557
1,33,775 |
49% 46% |
|
Total Income Finance Cost |
3,038 -1,340 |
4,572 -2,205 |
51% 65% |
5,809 -2,471 |
8,706 -4,212 |
50% 70% |
|
Net Income |
1,697 | 2,367 | 39% | 3,337 | 4,493 |
35% |
|
Total Expenses Loan Losses |
-661 -278 |
-946 -400 |
43% 44% |
-1,241
-577 |
-1,733
-772 |
40% 34% |
|
Profit Before Tax |
758 | 1,021 | 35% | 1,520 | 1,988 |
31% |
|
Profit After Tax |
563 | 762 | 35% | 1,129 | 1,489 |
32% |
-
- Aggregate disbursements in Q2 FY 24 were at Rs 21,542 Cr as against Rs 14,623 Cr in Q2 FY 23 with agrowth of 47%. Disbursements in H1 FY 24 were at Rs 41,557 Cr as against Rs 27,953 Cr registering a growth of 49% Y-o-Y.
- Vehicle Finance (VF) disbursements were at ₹ 11,731 Cr in Q2 FY 24 as against Rs 8,502 Cr in Q2 FY23, registering a growth of 38%. Disbursements in H1 FY 24, were at Rs 23,032 Cr as against Rs 17,063 Cr in theprevious year, reporting a growth of 35% Y-o-Y.
- Loan Against Property (LAP) business disbursed Rs 3,192 Cr in Q2 FY 24, as against ₹ 2,246 Cr in Q2 FY23, with a growth rate of 42%. The Disbursements in H1 FY 24 were at Rs 5,872 Cr as against Rs 4,282 Cr in the previous year, registering a growth of 37% Y-o-Y.
- Home Loan (Affordable HL and Affordable LAP) business disbursed Rs 1,575 Cr in Q2 FY 24, as against Rs 743 Cr in Q2 FY23 registering a growth of 112%. The Disbursements in H2 FY 23 were at Rs 3,029 Cr as against Rs 1,354 Cr in the previous year, registering a growth of 124% Y-o-Y.
- Small and Medium Enterprises Loan (SME) business disbursed Rs 1,945 Cr in Q2 FY 24, registering 32% growth over Rs 1,473 Cr in Q2 FY23. The disbursements in H1 FY24 were at Rs 3,990 Cr, registering 59% growth over Rs 2,503 Cr in H1 FY 23.
- Consumer and Small Enterprise Loans(CSEL) disbursed Rs 2,853 Cr in Q2 FY 24, as against Rs 1,579 Cr in Q2 FY23 registering a growth of 81%. The disbursements in H1 FY24 were at Rs 5,207 Cr, registering 98% growth over Rs 2,633 Cr in H1 FY 23.
- Secured Business and PersonalLoan (SBPL) disbursed Rs 246 Cr and Rs 428 Cr in Q2 and H1 respectively for FY 24.
- Assets under management as of 30th September 2023, stood at Rs 133,775 Cr as compared to Rs 91,841 Cr as of 30th September 2022, clocking a growth of 46% Y-O-Y.
- PBT Growth in Q2 was at 35% and for H1 was at 31% as compared to overall asset growth of 46% (YoY).
- PBT-ROA for Q2 FY 24was at 3.2% and for the half year was at 3.3%.
- ROE for H1 FY 24 was at 19.8 % as against 18.3% in the previous year.
- The Company continues to hold a strong liquidity position with Rs 11034 Cr as cash balance as at the end of Sep 2023 (including Rs 1500 cr each investedin Gsec / TBill shown under investments), with a total liquidityposition of Rs 13569 Cr (including undrawn sanctioned lines). The ALM is comfortable with no negative cumulative mismatches across all time buckets.
- Consolidated Profit Before Tax (PBT) for Q2 FY 24 was at Rs 1,065 Cr as against Rs 762 Cr in Q2 FY 23 registering a growth of 40%. For H1 FY 24 the consolidated profit was at Rs 2,021 Cr as against Rs 1,526 Cr in H1 FY 23 with a growth of 32%.
Asset Quality:
Stage 3 asset level has reduced to 2.96% as of September 23 from 3.06% as of end June 23. GNPA % as per RBI norms reducedto 4.07% as of September 23 as against 4.30% in June 23. NNPA as per RBI norms has also dropped to 2.59% as of September 23 against 2.82% in June 23. NNPA is below the threshold of 6% prescribed by RBI as the threshold for PCA.
The details of the stage wise assets and provisions are given in the Annexure.
Capital Adequacy:
The Capital Adequacy Ratio (CAR) of the company as of 30th September 2023, was at 16.62% as against the regulatory requirement of 15%. Tier-I Capital was at 14.66% and Tier-II Capital was at 1.96%. Post the Capital raise, the Capital Adequacy ratio is above 20%, effective 5th Oct 23.
Annexure
Stage wise ECL Summary
Stage wise Summary – Sep 23
Rs in Cr.
|
Particulars |
Jun-22 | Sep-22 | Dec-22 | Mar-23 | Jun-23 | Sep-23 |
|
Gross Assets – Stage 1 & 2 |
78,461 | 84,498 | 92,526 | 1,03,856 | 1,12,185 | 1,21,860 |
|
Gross Assets – Stage 3 |
3,408 | 3,375 | 3,367 | 3,222 | 3,546 | 3,719 |
|
Stage 3 Assets to Total Gross Assets |
4.16% | 3.84% | 3.51% | 3.01% | 3.06% | 2.96% |
|
Coverage Ratio (%) – Stage 3 |
40.69% | 41.48% | 40.96% | 46.00% | 45.40% | 47.32% |
Asset Classification:
|
STAGE_1A |
Represents assets (i) which had never touched NPA and (ii) which had been an NPA in the past but had been normalised and currently in the 0-30 days – Hence no more an NPA as per RBI norms |
|
STAGE_1B |
Represents assets which had been an NPA in the past but yet to be fully normalised though it has moved to stage 1 currently – Hence an NPA as per current RBI norms |
|
STAGE_2A |
Represents assets (i) which had never touched NPA and (ii) which had been an NPA in the past but had been normalised post that and now in 31-90 days DPD – Hence no more an NPA as per RBI norms |
|
STAGE_2B |
Represents assets which had been an NPA in the past but yet to be fully normalised though it has moved to stage 2 currently – Hence an NPA as per current RBI norms |
|
STAGE_3 |
Represents assets which continues to be a NPA as on the closing date – Hence an NPA as per current RBI norms |
About Cholamandalam
Cholamandalam Investment and Finance Company Limited (Chola), incorporated in 1978 as the financial services arm of the Murugappa Group. Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stock broking and a variety of other financial services to customers.
Chola operates from 1267 branches across India with assets under management above INR 133755 Crores. The mission of Chola is to enable customers enter a better life. Chola has a growing clientele of over 25 lakh happy customers across the nation.Ever since its inception and all throughits growth, the company has kept a clear sight of its values. The basic tenet of these values is a strict adherence to ethics and a responsibility to all those who come within its corporate ambit- customers, shareholders, employees and society.
For more details,please visit www.cholamandalam.com
About MurugappaGroup
A 123-year-old conglomerate with presence across India and the world, the INR 742 billion Murugappa Group has diverse businesses in agriculture, engineering, financial services and more.
The Group has 10 listed companies under its umbrella — Carborundum Universal Limited, CG Power & Industrial Solutions Limited, Cholamandalam Financial Holdings Limited, Cholamandalam Investment & Finance Company Limited, Cholamandalam MS General Insurance Company Limited, Coromandel International Limited, Coromandel Engineering Limited, EID Parry (India) Limited, Shanthi Gears Limited, Tube Investments of India Limited and Wendt India Limited. Brands such as Ajax, Hercules, BSA, Montra, Montra Electric,Mach City, Gromor, Paramfos, Parry’s are part of the Group’s illustrious stable.
Abrasives, technical ceramics, electro minerals, electric vehicles, auto components, fans, transformers, signalling equipment for railways, bicycles, fertilisers, sugar, tea and severalother products make up the Group’s business interests.
Guided by the five lights — integrity, passion, quality, respect and responsibility — and a culture of professionalism, the Group has a workforce of over 73,000 employees.
For more information, see www.murugappa.com
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