Mahindra & Mahindra Financial Services has reported a 34 per cent rise in net profit at ₹269 crore for the quarter ending June 30, 2018, on the back of improved asset quality and positive rural sentiments. The company’s net profit in the year-ago period was ₹201.36 crore.

Total income during the first quarter of the fiscal stood at ₹1,940 crore, up 29 per cent from ₹1,508 crore during the corresponding quarter of last year.

The company’s customer base crossed 55 lakh during the quarter, and total assets under management (AUM) went up by 21 per cent at ₹58,711 crore. The total value of assets financed for the April-June quarter was ₹10,338 crore, up 35 per cent from ₹7,640 crore during the same period in the previous year.

Ramesh Iyer, Vice-Chairman and Managing Director, M&M Financial Services, told BusinessLine : “Rural sentiment is holding up positive with a better-than-expected monsoon.

“Besides, the collections have improved and NPAs, which generally go up in the first quarter, remained at the same levels and this has happened after a really long time. Also, the efficiency in collection has gone up.”

M&M Financial, which has four subsidiaries across rural housing, asset management and insurance broking, is largely focused on the rural and semi-urban sector through tractor financing. It also offers fixed deposits and loans to SMEs.

The company’s board has approved raising funds by way of public issue of secured and/or unsecured non-convertible debentures up to ₹10,000 crore in one or more tranches.

The M&M Financial stock closed 0.91 per cent up at ₹517.20 on the BSE.

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