Mahindra & Mahindra Financial Services Limited (Mahindra Finance), an NBFC that caters to financial services in rural and semi-urban markets, has posted a 132 per cent growth in profit at ₹381 crore during the quarter ending September 30, 2018.
Its profit in the same quarter last fiscal stood at ₹164 crore.
Rise in total income
Total income increased by 39 per cent at ₹2,148 crore in the second quarter, against ₹1,540 crore in the corresponding period last year, the company said in a statement.
During the period, the company’s total Assets Under Management (AUM) stood at ₹59,473 crore, up 26 per cent from ₹47,213 crore, as on September 30, 2017.
Impairment provisioning is done as per Expected Credit Loss (ECL) method prescribed in lnd AS, which requires provisioning in three stages.
The company has considered all loan accounts with an ageing of above 90 days under stage 3 (impaired assets), which has gone down to 9.0 per cent for the period ended September 30, 2018, from 13.1 per cent during the corresponding period last year.
The company’s subsidiaries, Mahindra Insurance Brokers Limited (MIBL), Mahindra Rural Housing Finance Limited (MRHFL) and Mahindra Finance USA(MFUSA), have posted profits. However, Mahindra Asset Management Company Private Limited (MAMCPL) has incurred a loss.