Cholamandalam Investment and Finance Company Ltd (Chola), the financial services arm of the Rs 38,000-crore Murugappa Group, on Thursday reported a profit after tax (PAT) of Rs 432 crore for the second quarter of FY21, against Rs 307 crore in the corresponding quarter of last fiscal, registering a growth of 41.7%.
Total income grew 11% to Rs 2, 440 crore, compared with Rs 2,197 crore. Chola’s aggregate disbursements in Q2FY 21 declined 13% to Rs 6,457 crore, against Rs 7,381 in the year-ago period. Its assets under management grew 16% to Rs 74,471 crore, compared with Rs 64,409 crore.
The company said it has posted a strong performance in Q2 despite the prevailing tough market conditions. Post the moratorium period, the company had over 95% of the moratorium customers starting to repay their instalments till date.
However, considering the market conditions, on a prudent basis, the company has created additional provisions of Rs 250 crore towards macro provisions during the quarter in stage 1 and 2. Including this, the cumulative additional provisions towards macros stood at Rs 800 crore.
Total provisions, including the additional macro provisions and the normal provisions created, were at Rs 1,688 crore, which was at 2.64% of the overall book, it said.
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