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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.
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