Money & Banking

M&M Financial Services Q4 net profit down 66%; L&T Financial Holdings profit down 29.5%

Our BureauMumbai, May 15 Mumbai | Updated on May 15, 2020 Published on May 15, 2020

Mahindra and Mahindra Financial Services posted a 65.9 per cent drop in net profit in the fourth quarter of FY20 to ₹238.89 crore when compared to ₹700.57 crore in the same period a year ago with higher provisions for losses related to Covid-19.

“The company, in order to cover the contingencies that may arise due to Covid–19 pandemic, has incorporated the management overlays in the impairment loss allowance, and the total provision recognised in the statement of profit and loss during the quarter is ₹681.16 crore,” it said in a statement on Friday.

In FY20, it reported a 42 per cent drop in its net profit to ₹1,086 crore against ₹1,867 crore in FY19. Total income increased by eight per cent at ₹3,140 crore during the quarter year ended March 31, 2020, against ₹2,902 crore during the corresponding quarter last year.

L&T Financial

Meanwhile, L&T Financial Holdings reported a 29.5 per cent drop in net profit at ₹386 crore in the fourth quarter of the fiscal when compared to ₹548 crore a year ago.

“This reduction in profit after tax is largely explained by the additional provisions taken to strengthen the balance sheet to be able to face the aftermath of pandemic,” it said in a statement.

It made additional provisions of ₹314 crore, including ₹209 crore for Covid-19, and enhanced provision of ₹105 crore on stage two assets.

Total income grew 1.27 per cent to ₹3,427.22 crore in the fourth quarter of the fiscal against ₹3,383.92 crore a year ago.

Published on May 15, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.