Mahindra Finance Q1 profit at Rs 240 cr

NEW DELHI: Mahindra & Mahindra Financial Services on Thursday reported a consolidated net profit of Rs 240 crore for the June quarter aided by a fall in expenses and higher income from business operations.

The company had posted a net loss of Rs 1,573.40 crore in April-June 2021-22.

The loss in the year-ago period was due to the impact of the second wave of Covid-19, Mahindra & Mahindra Financial Services (Mahindra Finance) said.

The net profit in the period was 62 percent lower when compared to the previous March quarter.

Total income during April-June 2022-23 increased to Rs 2,914 crore from Rs 2,567 crore earlier, Mahindra Finance said in a regulatory filing.

Interest income was up at Rs 2,766 crore as against Rs 2,465 crore.

Besides, total expenses for the Mahindra group's non-banking financial arm fell 45 percent to Rs 2,607 crore as against Rs 4,725 crore. Though the expenses were higher from Rs 2,035 crore in March 2022 quarter.

The June quarter earnings include results from as many as six subsidiaries, one associate firm in the US, and two joint ventures.

The company said, during the quarter, there was a strong disbursement growth of 145 percent at Rs 9,472 crore from a year ago, while the loan book rose 6 percent to Rs 67,693 crore at the end of Q1FY23.

On the asset front, gross bad loans stood at 8 percent of gross advances as of June 30, 2022. The net bad loan proportion was at 3.5 percent.

Capital adequacy stands at a healthy 25.9 percent.

''As of June end, the company carried a total liquidity buffer of approximately Rs 8,700 crore - covering 3 months' obligations,'' it added.

Ramesh Iyer, Vice Chairman, and Managing Director, Mahindra Finance said the company has been able to report a satisfactory top-line and bottom-line performance on the back of growth in asset book and control of asset quality. ''The first quarter of last year was impacted due to the second wave of Covid-19. As the year progressed, the asset quality improved and the performance normalized. To that end, the current quarter performance is not comparable to that of the previous year,'' Iyer said.

Mahindra Finance stock settled at Rs 196.45, down 1.16 percent from the previous close on the BSE.