On Tuesday, financial services company Cholamandalam said that it has been able to file a five-fold increase in its net profit. In real terms, the same came up to Rs. 15.75 crore for the quarter ending June 30.

The firm in its mandatory filing with the BSE has said that the total disbursement during the quarter increased 77 per cent to end at Rs. 1,246 crore as compared to Rs. 702 crore in the corresponding quarter of last fiscal.

Main reason for the jump was the strong growth that was seen in the commercial vehicle segment.

Under this service, Cholamandalam disbursed Rs. 952 crore as against Rs. 511 crore for the same quarter last year.

Profit before tax stood at t Rs 23.39 crore against Rs 5.07 crore in the first quarter of the previous fiscal. The calculations deducted loan losses for providing home loans.

Besides this, it also announced its plans to raise Rs. 250 crore via various instruments. The money will be used for strengthening the firm's capital adequacy ratio besides increasing the net worth.

Another major development during the quarter was termination of its JV with DBS.