NE BUSINESS BUREAU
CHENNAI, JUNE 19
The Cholamandalam Financial Holdings Limited (CFHL) of Murugappa Group has released the financial results for Q4 and financial year ending on March 31, 2020. According to the reported, the company has achieved Rs 1,165-crore as profit after tax, a release from the company said.
The Board of Directors of CFHL approved the audited financial results for the quarter and year ended March 31, 2020.
Consolidated Results
For the year ended March 31, 2020, the Company has achieved consolidated Profit after tax of Rs. 1,165 Cr. as against Rs.1,415 Cr. in the previous year. Drop in Profit after tax is due to one time impairment provision of Rs 504 Cr. on loans to cover contingencies due to COVID-19 and related macro economic conditions and remeasurement of deferred tax asset consequent to reduction in Income Tax Rate during the year.
Cholamandalam Investment & Finance Company Ltd, in which the Company holds 45.50% stake, disbursed Rs. 29,091 Cr. for the year ended March 31, 2020 compared to Rs. 30,451 Cr. in the previous year. Due to the wide-spread Covid-19 pandemic, government had announced a lock-down of all businesses and all activities effective 24th March 2020 which severely impacted disbursements.of Q4. Disbursements which were already registering a slow growth till Dec 19 (9% growth YTD Dec) suffered resulting in a drop of 4% for the year over FY 19.
Profit after tax for the year is at Rs. 1,052 Cr. after creation of one-time provision of Rs. 504 Cr to cover contingencies due to COVID-19 and Macro economic factors. On a comparable basis, Profit after tax for the year ended March 31, 2020 is at Rs. 1,387 Cr before one-time provision of Rs.504 Cr to cover contingencies due to COVID-19 and Macro, as against Rs. 1,186 Cr last year, registering a growth of 17%.
Total Assets under management grew by 16% at Rs. 66,943 Cr as compared to Rs.57,560 Cr in FY19.
Cholamandalam MS General Insurance Company Ltd., a subsidiary in general insurance business, in which the Company holds about 60% stake, registered a Gross Written Premium (GWP) of Rs. 4,824 Cr. during the year as against Rs. 4,552 Cr. in FY19, a growth of 6%. Profit after tax for the year was at Rs. 125 Cr. as against Rs. 198 Cr. in FY19. Drop in Profit after tax is on account of remeasurement of deferred tax asset consequent to reduction in Income Tax Rate for the year.
Cholamandalam MS Risk Services Ltd., a Joint Venture Company, in which the Company holds 49.5% stake, registered a revenue of Rs. 46.29 Cr. for the year as against Rs. 40.82 Cr. in FY19. Profit after tax for the year was at Rs. 4.09 Cr. as against Rs. 3.53 Cr. in FY 19.
Standalone Results
The Profit after tax for the year is at Rs. 83.33 Cr. as against Rs. 66.53 Cr. in FY19, a growth of 25%.
Dividend
The Board of Directors, at their meeting held on February 26, 2020 had declared interim dividend of Rs.0.65 per equity share of the face value of Re.1 each, for FY 20. The Board of Directors have recommended the same to be confirmed as final dividend for FY 20.
Changes in Tax Rates:
Pursuant to the Taxation Laws (Amendment) Bill 2019, passed on 25th November 2019 , the Company and some of its subsidiaries have exercised the option permitted u/s.115BAA of the Income Tax Act, 1961 to compute Income Tax at revised rate (i.e, 25.17%) from current financial year, and accordingly, has re-measured current / deferred tax and the consequential effect has been fully recorded during the year.
For more details, browse www.cholafhl.com the release added. The audited financial results CFHL financials Q4 FY 2019_20
