Money & Banking

Mahindra Finance Q4 net profit down 8%

Our Bureau. Mumbai | Updated on April 23, 2021

Mahindra and Mahindra Financial Services reported an 8 per cent decline in consolidated net profit for the fourth quarter of 2020-21.

Its consolidated net profit was ₹219 crore during the quarter ended March 31, 2021, against ₹239 crore in the corresponding quarter last year.

The total income declined marginally by 3 per cent at ₹3,038 crore during the fourth quarter of 2020-21 against ₹3,140 crore in the corresponding quarter in the previous fiscal.

For the full fiscal 2020-21, Mahindra Finance reported a 28 per cent drop in consolidated net profit at ₹780 crore, compared to ₹1,086 crore in 2019-20.

“The board of directors has recommended a dividend of ₹0.80 per share on equity share of ₹2 each, that is 40 per cent, subject to the approval of the members at the ensuing 31st Annual General Meeting of the company,” it said in a statement on Friday.

In 2020-21, total disbursements fell by 41 per cent to ₹19,001 crore against ₹32,381 crore in 2019-20. The loan assets stood at ₹64,608 crore as on March 31, 2021, compared to ₹68,089 crore as on March 31, 2020.

The Gross Stage 3 levels stood at 9 per cent as on March 31, 2021, against 8.4 per cent as on March 31, 2020.

Mahindra Finance said it has recorded a total additional ECL overlay of ₹996.36 crore as on March 31, 2021, in the standalone balance sheet and ₹1,093.81 crore in the consolidated balance sheet, to reflect deterioration in the macroeconomic outlook.

Published on April 23, 2021

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