Cholamandalam Investment & Finance Company Ltd (CIFCL) has reported an all-around performance for the first quarter of this fiscal year, with strong growth in profit after tax (PAT), disbursements, net income, and improvements in asset quality.

The Murugappa Group’s NBFC is planning to raise ₹4,000 crore equity through QIP (qualified institutional placement). The Chennai-headquartered company posted a 28 per cent rise in its PAT to ₹726 crore for the quarter that ended June 30, 2023compared with ₹566 crore in a year-ago quarter.

Its total income grew 49 per cent to ₹4,134 crore (₹2,771 crore), while net income jumped 30 per cent to ₹2,127 crore (₹1,640 crore).

The aggregate disbursements reported a 50 per cent increase at ₹20,515 crore, according to a company statement.

In the vehicle finance business, disbursements grew 32 per cent to ₹11,301 crore in Q1FY24 (₹8,562 crore. Loan Against Property business disbursed ₹2,679 crore against ₹2,036 crore in the year-ago quarter — an increase of 32 per cent. Home loan (affordable home loan and affordable LAP) disbursements more than doubled to ₹1,454 crore (from ₹611 crore).

The company continued to hold a strong liquidity position, with ₹7,069 crore as cash balance as of June 2023 and a total liquidity position of ₹9,479 crore (including undrawn sanctioned lines).

Gross NPA reduced to 4.30 per cent as of June 2023 quarter against 4.63 per cent in the March 2023 quarter, while net NPA also dropped to 2.82 per cent from 3.11 per cent in Q4 of FY23.

Assets under management grew 42 per cent to ₹122,755 crore in June 2023 quarter against ₹86,703 crore in the year-ago quarter.

The NBFC retail industry AUM growth is estimated at 18-20 per cent in FY24. Secured NBFC retail loans consisting of vehicle finance and other secured business loans are projected to grow at 14-16 per cent, it said.

Capital raise plans

The b oard has approved a proposal for capital raising by way of QIP up to an amount not exceeding ₹4,000 crore in one or more tranches.

The board also approved the issue of secured/unsecured redeemable non‐convertible debentures (NCDs) aggregating to ₹38,000 crore in one or more tranches on a private placement basis.

Shares of the company closed at ₹1,130.65 apiece, down 0.09 per cent on BSE on Tuesday.