Total AUM crossed ₹ 64,000 Crs and Up 23%
Key Financial results (H1 FY 19-20):
Disbursements up at ₹ 15,954 Cr for the H1 FY 20 (Up 15% YoY).
Total Income up at ₹ 4,227 Cr for the H1 FY 20 (Up 29% YoY).
PBT up at ₹ 1,006 Cr for the H1 FY 20 (Up 12% YoY).
Total AUM up at ₹ 64,409 Cr (Up 23% YoY).
Gross Stage 3 Assets% reduced from 3.40% in Sep18 to 3.18% in Sep19
Chennai, November 5, 2019: The Board of Directors of CIFCL today approved the audited financial results for the quarter and half year ended 30th September 2019.
Q2 and H1 FY 19-20 Performance:
The company has posted a strong performance in Q2 and H1 FY20, despite the prevailing tough market conditions.
· Aggregate disbursements for half year were at ₹15,954 Cr against ₹13,913 Cr in the previous half year of FY 19, registering a growth of 15%. The disbursements for the quarter ended September 19 were at ₹ 7,381 Cr as against ₹ 6,899 Cr for the quarter ended September 18, registering a growth of 7%.
· Vehicle Finance (VF) business has clocked a volume of ₹ 12,736 Cr for the period ended September 2019 as against ₹ 11,323 Cr in the previous year, reporting a growth of 12%. The same numbers for the quarter ended September 19 were at ₹5,796 Cr as against ₹5609 Cr for the quarter ended September 18, registering the growth of 3%. The slow-down in VF disbursement can be explained by the stagnation in the industry volumes during this quarter.
· Home Equity (HE) business disbursed ₹ 2,165 Cr as against ₹ 1,849 Cr for period ended September 2018, marking a growth of 17% Y-o-Y. Disbursements for the quarter ended September 2019 were at ₹ 1,064 Cr as against ₹ 910 Cr for the quarter ended September 18 registering a growth of 17%.
· AUM grew by 23% at ₹ 64,409 Cr in H1 FY20 as compared to ₹ 52,486 Cr in H1 FY19.
· Vehicle Finance (VF) AUM grew by 24% to ₹ 43,901 Cr in H1 FY20 as against ₹ 35,507 Cr in H1 FY19.
· Home Equity (HE) AUM grew by 17% to ₹ 12,612 Cr in H1 FY20 as against ₹ 10,742 Cr in H1 FY19.
· Profits before Tax (PBT) for the half year ended September 2019 were at ₹ 1,006 Cr as against ₹ 898 Cr last year registering a growth of 12%. For the quarter ended September 19, the PBT was at ₹ 523 Cr as against ₹ 460 Cr for the quarter ended September 18, registering the growth of 14%.
· The PBT-ROTA for H1 FY20 is at 3.4% and ROE for H1 FY 20 is at 19%
· Our Branch presence increased to 1029 Branches in H1 FY20.
Notwithstanding the tight market conditions, CIFCL continues to demonstrate strong asset quality and has been able to reduce the Stage 3 receivables from 3.40% in Sep’18 to 3.18% in Sep’19 (under IND AS) with a provision coverage of 34.4%. As per the traditional IGAAP approach too, the GNPA levels have reduced from 2.95% in Sep’18 to 2.75% in Sep’19 with a provision coverage of 43.1%.
The Capital Adequacy Ratio (CAR) of the company as on 30th September 2019, was at 17.09% as against the regulatory requirement of 15%.
Changes in Tax Rates:
Pursuant to the Taxation Laws (Amendment) Ordinance 2019, promulgated on 20th September 2019, the Company intends to exercise the option permitted u/s 115BAA of the Income Tax Act, 1961 to compute income tax at the revised rate (i.e. 25.17%) from current financial year and accordingly has re-measured the current/deferred tax and the consequential effect has been fully recorded in the current period. Additional income tax expense of ₹ 80.21 Cr and ₹ 126.73 Cr has been recognized for the quarter and half year ended September 30,2019 respectively.