Increase in costs halves the net profit for Chola DBS
Our Corporate Bureau
24 July 2006
Chennai: Even as the top line increased to Rs60.6 crore, the increase in interest outgo by Rs10.2 crore, the business origination costs by Rs2.84 crore and other operating costs by Rs2.2 crore has impacted the bottom-line of the city based Cholamandalam DBS Finance Limited badly during the first quarter. The company closed the first three months with a net profit of Rs3.53 crore down by Rs3.99 crore.
According to a company release, the profits were lower because of absorption of upfront expenses relating to new products viz. consumer finance.