Investment sale increases Chola DBS top and bottom lines for FY 2006

Chennai: The Rs14.54 crore profits on the sale of long-term investments has increased Cholamandalam DBS Finance Limited's top and bottom lines for fiscal 2005-06. The company's income from operations and the net profit for the year under review is Rs219.55 crore and Rs32.21 crore as against the previous year's figure of Rs214.64 crore and Rs35.34 crore respectively. The board has recommended 50 per cent dividend for the year under review.

During FY 2006, the company has posted a growth of 15 per cent in the disbursements of its core products - commercial vehicles, multi-utility vehicles and cars. The total disbursements for all categories of vehicles stood at Rs1,295 crore.

The company's gross asset base (including assets de-recognised) grew by 18 per cent to Rs2,309 crore. The company's NPAs, net of provisioning, was 0.61 per cent of risk-weighted assets. With a paid up capital of Rs38.01 crore, the capital adequacy ratio was 14.9 per cent.

According to the managing director Atul Pande, the business focus for FY 2007 will continue to build a profitable position in the commercial vehicles business. Used vehicles and three wheelers continued to be the key growth areas.

The company will also launch the consumer- finance business nation wide. Presently the personal loans are test marketed in some parts.