Money & Banking

Mahindra & Mahindra Financial Services Q2 net profit up at ₹1,103 crore

Our Bureau Mumbai | Updated on October 28, 2021

Disbursements grew by 61 per cent year on year on year to ₹6,475 crore

Mahindra & Mahindra Financial Services consolidated net profit surged by 212.9 per cent to ₹1,102.94 crore in the second quarter of the fiscal. Its net profit was ₹352.51 crore in the same period last fiscal.

However, its total income declined by four per cent to ₹2,951 crore during the quarter ended September 30, 2021, as against ₹3,071 crore during the corresponding quarter last year.

“During the quarter, the company increased its shareholding in Ideal Finance Limited (IFL), Sri Lanka from 38.2 per cent to 58.2 per cent. IFL is now a subsidiary of the company. This stake increase has resulted in revaluation of existing equity stake in IFL, which led to a one-time revaluation gain of Rs 21 crore, which is shown as exceptional item in the second quarter 2021-22 consolidated financials,” Mahindra Finance said in a statement on Thursday.

Disbursements grew by 61 per cent year on year on year to ₹6,475 crore in the second quarter of the fiscal. “But for the supply side issues, the disbursements would have grown further,” the company added.

It also reported improvement in collection efficiency month on month – 95 per cent in July, 97 per cent in August and peaking at 100 per cent in September.

The company has a restructured book of 1,04,130 contracts as on September 30, 2021 with an underlying AUM of ₹4,390 crore.

Out of these, 96,391 contracts are classified in Stage-2 as the company believes that the stress in these contracts is temporary, caused by second wave of Covid-19, Mahindra Finance said.

As collection efforts intensified, the gross non performing assets improved sequentially to 12.7 per cent as on September 30, 2021 from from 15.5 per cent as on June 30, 2021.

Published on October 28, 2021

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