Money & Banking

Mahindra Finance Q2 net profit up 34%

Our Bureau. Mumbai | Updated on October 26, 2020

Mahindra and Mahindra Financial Services reported a 33.7 per cent increase in consolidated net profit at ₹352.5 crore in the second quarter of the fiscal against ₹263.6 crore a year ago.

Its total income increased by 4.6 per cent to ₹3,070.5 crore in the quarter ended September 30, 2020, against ₹2,936.48 crore during the corresponding quarter of last year.

In a statement on Monday, Mahindra Finance said it has considered an additional charge of ₹433 crore during the second quarter this fiscal and ₹910 crore in the first half of the fiscal due to a management overlay, to reflect deterioration in the macroeconomic outlook.

“As of September 30,2020, the cumulative amount of management overlay provisions stood at ₹1,484 crore,” it said.

The standalone assets under management stood at ₹81,682 crore at the end of the second quarter this fiscal, registering a 12 per cent growth from ₹72,732 crore a year ago.

The company’s customer base crossed 69 lakh in the second quarter of the fiscal and it reported strong rural demand.

“Tractors, passenger cars and Light Commercial Vehicles (LCVs) are seeing healthy demand. Pre-owned vehicles will continue to be a growth driver,” it said, adding that it also expects to see an increase in digitally enabled lending and collections in rural and semi-urban markets.

Published on October 26, 2020

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