The Hindu Business Line : Mahindra Finance Q4 net rises 22%

The company attributed this growth to its increased market share in tractor financing, growth in financing of non-M&M products - finance of Maruti vehicles (from 25 per cent to 35 per cent market share, at 3,500 vehicles per month) and increase in branch networks (from 305 to 403 outlets nationwide).

In addition, it made an entry into new markets such as the two-wheeler segment and the second-hand vehicle market, said Mr Ramesh Iyer, Managing Director, Mahindra Finance, at a news conference.

The long-term interest rate in current fiscal went up by nearly 250 basis points. However, due to prudent asset-liability management and diversification of the resource base, the company was able to contain the impact. In future, it will pursue the dual strategy of appropriate product mix and lending rates to compensate for interest cost increases, said Mr V. Ravi, Chief Financial Officer of the company.

The company posted a net profit of Rs 132.88 crore for the year ended March 31, 2007, against Rs 108.27 crore in the previous fiscal. Disbursements grew by 22 per cent at Rs 5,400 crore.

Income from operations for FY 2007 includes write back of provision on securitisation of Rs 7.10 crore (Rs 12.95 crore) which is no longer required, said a statement from the company.

To pay 20% final

The board of directors has recommended a final dividend of 20 per cent. With interim dividend, the total dividend for the year stands at 40 per cent.

The company plans to enter the personal and home loan segments. It has established a new subsidiary called Mahindra Rural Housing Finance to cater to rural housing; it is yet to get a licence from National Housing Bank for its operations, said Mr Iyer.

The company's shares closed Tuesday at Rs 232 on the BSE, gaining 0.87 per cent over the previous close.

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