Cholamandalam Investment and Finance Company Ltd has registered a marginal increase in its net profits for the fourth quarter ending March 31, 2019 to Rs 291.86 crore.
The city-based Murugappa Group company had clocked net profits at Rs 285.26 crore registered year ago.
For the full year ending March 31, 2019 net profits of the company surged to Rs 1,186.15 crore from Rs 918.30 crore registered last fiscal.
Total income for the January-March 2019 quarter went up to Rs 1,885.34 crore from Rs 1,455.91 crore registered year ago.
For the year ending March 31,2019, total income stood at Rs 6,992.64 crore as against Rs 5,479.66 crore registered year ago.
During the year ending March 31, 2019, the company said the industry faced liquidity constraints due to restrict supply of market funds.
The total assets under management was up by 26 per cent year on year and was at Rs 54,279 crore (as compared to Rs 42,924 crore).
Aggregate disbursements for the year ending March 31, 2019 were at Rs 30,451 crore as against Rs 25,114 crore registered same period of last year.
Vehicle financing witnessed a 21 per cent growth year-on-year to Rs 24,807 crore from Rs 20,540 crore registered year ago.
Home equity business disbursed in March 2019 was at Rs 3,837 crore as against Rs 3,174 crore registered year ago.
The Board of Directors which met Saturday recommended a final dividend of 20 per cent being Rs two per share on the equity shares of the company for the year ending March, 2019.
“This along with the interim dividend takes the dividend to 65 per cent being Rs 6.50 per share for the year March 31, 2019,” the statement said.
Commenting on the financial performance, company Executive Director, Arun Alagappan said, “we have been consistent in delivering growth over 25 per cent in AUM, total income and PAT for the past few years.”
“The asset quality has improved further this year and is at an all-time low of 1.1 per cent net NPA,” he said.
Noting that the industry was facing an adverse impact as a result of tightening of financing due to liquidity crunch, he said “at Chola, we did not have any impact having built credible relationships with banks and financial institutions”.