Mahindra Finance Q2 Net Profit Up 36%: Strong Growth in September Quarter

Mumbai, Oct 22 (PTI) Non-bank lender Mahindra Finance on Tuesday reported a 36 per cent growth in its consolidated net for the September quarter at Rs 390 crore.

The lender had reported a post-tax profit of Rs 287 crore in the year-ago period.

On a standalone basis, in the September quarter, net jumped 57 per cent to Rs 369 crore, but the same was down 25 per cent over the Rs 513 crore in the preceding June quarter.

The core net interest income grew 19 per cent over the year for the September quarter at Rs 1,991 crore, on the back of a 20 per cent growth in gross loan book and the net interest margin remaining stable at 6.5 per cent.

The company, however, said that vehicle finance slowed down during the April-September period and the disbursements were up by only 2 per cent in the first half of the year.

The tractor segment contributed to 40 per cent of the uptick in stressed assets during the September quarter, the company said, adding that the stage-3 assets at 3.8 per cent were better than the 4.3 per cent in the year-ago period.

Among the subsidiaries, Mahindra Rural Housing Finance reported a 37 per cent decline in the September quarter net at Rs 7 crore, Mahindra Insurance Brokers' net profit was down 55 per cent at Rs 13 crore while Mahindra Manulife Investment Management incurred a loss of Rs 2 crore.

The Mahindra and Mahindra Financial Services scrip closed 2.48 per cent down at Rs 281.55 a piece on the BSE on Tuesday, as against a 1.15 per cent correction on the benchmark.