The company has posted a strong performance in Q2 and H1 FY21, despite the prevailing tough market conditions.
CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LIMITED (CIFCL) UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED
30th SEPTEMBER 2020
Total AUM crossed ₹ 74,000 Crs Up by 16% and
PAT for the quarter is at ₹ 432 Cr up by 41%
Key Financial results (H1 FY 20-21):
- Total AUM up at ₹ 74,471 Cr (Up by 16% YoY)
- PBT up at ₹ 1,163 Cr for the Half year ended (Up by 16% YoY)
- PAT up at ₹ 863 Cr for the Half year ended (Up by 39% YoY)
Chennai, October 29, 2020: The Board of Directors of CIFCL today approved the unaudited financial results for the quarter and half year ended 30th September 2020..
Highlights:
Q2 and H1 FY 20-21 Performance:
The company has posted a strong performance in Q2 and H1 FY21, despite the prevailing tough market cond itions. Pursuant to the moratorium getting over in Aug’20, the Company had over 95% of the Moratorium cus tomers starting to repay their installments till date. However, considering the externalities in the market, on a prudent basis the Company has created additional provisions of Rs. 250 Cr towards macro provisions during this quarter in Stage 1 and 2. Including this, the cumulative additional provisions towards macros stand at Rs. 800 Cr. The total provisions, including the additional macro provisions and the normal provisions created basis the pr evailing ECL model is at Rs. 1688 Cr, which is at 2.64% of the overall book.
The Company continues to hold strong liquidity position with Rs. 6,802 Cr as cash balance as of Sep’20, with a total liquidity position of Rs.9,797 Cr (including undrawn sanctioned lines). The ALM is comfortable with no negative cumulative mismatches across all time buckets.
Performance Highlights:
Note: Loan Losses include additional provisions towards macros of ₹ 250 Cr for the quarter and ₹ 266 Cr for H1 of FY 21.
- Aggregate disbursements in Q2 FY 21 were at ₹ 6,457 Cr as against ₹ 7,381 in Q2 FY 20, which is a decline of 13%. Disbursements in H1 FY 21 were at ₹ 10,046 Cr as against ₹ 15,954 Cr in the previous year registering a decline of 37% Y-on Y.
- Vehicle Finance (VF) business has clocked a volume of ₹ 4,781 Cr in Q2 FY 21 as against ₹ 5,796 in Q2 FY20, registering a decline of 18%. Disbursements in H1 FY 21, were at ₹ 8,012 Cr as against ₹ 12,736 Cr in the previous year, reporting a decline of 37% Y-o-Y. Disbursements for new vehicles started picking up in the later part of the second quarter.
- Loan Against Property (LAP) business disbursed ₹ 1,052 Cr in Q2 FY 21, as against ₹ 1,064 Cr in Q2 FY 20, with a marginal decline of 1%. The Disbursements in H1 FY 21 were at ₹ 1,171 Cr as against ₹ 2,165 Cr in the previous year, registering a decline of 46% YoY.
- Home Loan (HL) business disbursed ₹ 381 Cr in Q2 FY 21, as against ₹ 414 Cr in Q2 FY 20. The Disbursements in H1 FY 21 were at ₹ 571 Cr as against ₹ 834 Cr in the previous year, registering a decline of 32% YoY.
- Assets under management as of 30th Sep 2020, grew by 16% at ₹ 74,471 Cr as compared to ₹ 64,409 Cr as of end Sep in FY20.
- Profits after Tax (PAT) for Q2 FY 21 were at ₹ 432 Cr compared to ₹ 307 Cr in Q2 FY 20, reporting a growth of 41%. PAT for H1 FY 21, were at ₹ 863 Cr as against ₹621 Cr in the same period last year registering a growth of 39%.
- PBT-ROA for Q2 FY 21 was at 3.4% and for the half year was at 3.5% as against 3.4% in half year of FY20.
- ROE for the H1 FY 21 was at 20.0 % as against 19.2% in previous year
Asset Quality
CIFCL asset quality as on 30th September 2020, represented by Stage 3 assets stood at 2.75% with a provision coverage of 42.65%, as against 3.18% in H1 of FY20 with a provision coverage of 34.43%. The Stage 3 assets ha ve improved from 3.80% in Mar 20 to 2.75% in September 20. Apart from the provision coverage repres ented above against stage 3 assets, additional provisions of Rs. 549 crs have been created towards Stage 1 and Stage 2 assets to cover any contingencies arising out of the Covid-19 pandemic fallout. The total provisions currently carried against the overall book is 2.64% as against the normal overall provision levels of 1.75% carried prior to the Covid-19 pandemic, representing an increase of nearly 50%.
