Chennai, May 2022: The Board of Directors of CIFCL today announced the audited financial results for the quarter and financial year ended 31st March 2022.
Highlights:
The impact of third wave on the Indian economy turned out to be muted than the previous two waves. Nationwide rapid vaccination coverage contributed to blunting the impact of Omicron and boosting consumer confidence and business optimism. The company had delivered its best-ever disbursals, collections, and profitability in Q4 FY22. The stellar performance was aided by strong signs of recovery in both Auto and Mortgage Industry. All major CV OEMs reported double digit growth in March’22 aided by pick up in infra projects, growth in logistics and e-commerce sector coupled with easing of finance option. Strong rebound in residential housing sales in the current quarter was aided by demand from consumers after deferral of home buying due to Covid19.
Performance Highlights:
• Aggregate disbursements in Q4 FY 22 were at ₹ 12,718 Cr as against ₹ 8,071 Cr in Q4 FY 21 with a growth of 58%. Disbursements for FY 22 were at ₹ 35,490 Cr as against ₹ 26,043 Cr in the previous year registering the growth of 36% Y-on-Y.
• Vehicle Finance (VF) disbursements were at ₹ 8,785 Cr in Q4 FY 22 as against ₹ 6,153 Cr in Q4 FY21, growth of 43%. Disbursements for FY 22, were at ₹ 25,439 Cr as against ₹ 20,249 Cr in the previous year, reporting a growth of 26% Y-o-Y.
• Loan Against Property including Affordable LAP, business disbursed ₹ 1,978 Cr in Q4 FY 22, as against ₹ 1,191 Cr in Q4 FY 21, with a growth rate of 66%. The Disbursements for FY 22 were at ₹ 5,862 Cr as against ₹ 3,627 Cr in the previous year, registering a good growth rate of 62% Y-o-Y.
• Home Loan (HL) business disbursed ₹ 441 Cr in Q4 FY 22, as against ₹ 538 Cr in Q4 FY 21. The Disbursements for FY 22 were at ₹ 1,571 Cr as against ₹ 1,542 Cr in the previous year.
• New businesses Consumer and Small Enterprise Loans (CSEL), Secured Business and Personal Loans (SBPL) launched last year and along with Small and Medium Enterprises Loans business made disbursals of ₹ 1515 Cr in Q4 of FY 22 which is a growth of 702% and ₹ 2619 Cr in the full year, which is a growth of 319% YoY.
• Assets under management as of 31st March 2022, stood at ₹ 82,904 Cr as compared to ₹ 76,518 Cr as of 31st March 2021.
• Profits after Tax (PAT) for Q4 FY 22 were at ₹ 690 Cr compared to ₹ 243 Cr in Q4 FY 21, reporting a growth of 184%. PAT for FY 21-22, were at ₹ 2,147 Cr as against ₹ 1,515 Cr in the same period last year registering a growth of 42%.
• PBT-ROA for Q4 FY 22 was at 4.8% and for FY 21-22 was at 3.9% as against 1.8% and 3.0% respectively in the same period last year.
• ROE for Q4 FY 22 was at 24.6% as against 10.4% in previous year.
• The Company continues to hold a strong liquidity position with ₹ 5,341 Cr as cash balance as at end of March 2022 (including ₹ 1500 Cr invested in Gsec shown under investments), with a total liquidity position of ₹ 13,246 Cr (including undrawn sanctioned lines). The ALM is comfortable with no negative cumulative mismatches across all time buckets.
Dividend:
The Board of Directors of the company has recommended a dividend of ₹ 0.70 per share (35%) on the equity shares of the company, subject to the approval of the members of the company at the ensuing Annual General Meeting. This is in addition to the interim dividend of ₹ 1.30 per share (65%) for the financial year 2021-22 declared by the company on 1st February 2022.
Asset Quality
Adoption of RBI circular on revised NPA norms
RBI had issued a circular in Nov 21 directing NBFC to adopt a tighter provisioning norm and accordingly, from 1st November 2021 onwards we have started tracking daily DPD and for agreements which crossed 90 DPD we continued to classify them as NPA until all dues towards principal and interest are collected in full. RBI had issued a clarificatory circular on February 15th, 2022, deferring the implementation date to September 30th, 2022. However, on a conservative note, we propose to early adopt these norms under IRAC.
The ECL model provisions this year is stress tested with the impact of Covid being built into the PD and LGD computations and hence the ECL model provisions across stages had increased over Dec-21. Apart from this, we had also factored in a write-off of ₹ 190 Cr for long overdue accounts where further recovery is expected to be minimal. Towards these a part of the management overlay amounting to ₹ 336 crs was utilised and the Management overlay provisions carried in books as of Mar’22 stands at ₹ 500 Cr.
CIFCL asset quality as at end of March 2022, represented by Stage 3 assets stood at 4.37% with a provision coverage of 39.67%, as against 5.85% as at end of December 2021 with a provision coverage of 38.80%. The total provisions currently carried against the overall book is 3.04% as against the normal overall provision levels of 1.75% carried prior to the Covid-19 pandemic.
As per revised RBI norms (circular dated Nov 12th, 2021) GNPA% and NNPA% as of March 2022 is at 6.82% and 4.75% respectively. We carry ₹ 564 Cr higher provisions under INDAS over IRAC.
The details of the stagewise assets and provisions are given in the annexure.
Capital Adequacy:
The Capital Adequacy Ratio (CAR) of the company as on 31st March 2022, was at 19.6% as against the regulatory requirement of 15%. Tier-I Capital was at 16.5%.
Subsidiaries’ / Associate’s / JV’s Performance
Revenue from Cholamandalam Securities Limited business for the year FY 22 is ₹ 40.12 Cr and from the Cholamandalam Home Finance Limited is ₹ 55 Cr. Net Revenues from two new investments, Payswiff Technologies Private Limited and Paytail Commerce Private Limited is ₹ 49.3 Cr and ₹ 1.5 Cr respectively for the FY 22.
