Mahindra Finance Reports Record Profit Amid Economic Caution
Mahindra Fin profit doubles in Q4, sets aside ₹217 cr for Iran war impact
Business Standard
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Mahindra and Mahindra Financial Services reported a consolidated net profit of ₹940 crore for the March quarter, more than double from ₹456 crore a year ago. The company set aside ₹217 crore as a precaution against potential impacts from the ongoing Middle East conflict, although it maintains strong collection efficiencies.
- 01Consolidated net profit surged to ₹940 crore, up from ₹456 crore year-on-year.
- 02Standalone profit after tax increased by 55% to ₹873 crore.
- 03The company set aside ₹217 crore for potential impacts from the Iran conflict.
- 04Net interest margin improved by 1% to 7.5%, driven by controlled funding costs.
- 05Mahindra Finance aims for mid-teen growth in assets under management moving forward.
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Mahindra and Mahindra Financial Services reported a significant increase in its consolidated net profit for the March quarter, reaching ₹940 crore, up from ₹456 crore in the same period last year. The standalone profit after tax also saw a 55% increase to ₹873 crore. Chief Executive Raul Rebello attributed this growth to effective operational strategies, including controlled funding costs that improved the net interest margin to 7.5% and a 12% growth in assets. Despite the positive results, the company has prudently set aside ₹217 crore to mitigate potential risks associated with the ongoing conflict in the Middle East, although Rebello assured that collection efficiencies remain strong. He emphasized that the provision should not be seen as a sign of impending trouble but rather as a necessary precaution. Moving forward, Mahindra Finance aims to maintain mid-teen growth in assets under management while balancing risk and margin considerations.
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The company's strong profit growth indicates stability in lending practices, which could benefit borrowers through continued access to loans. However, the provision for potential impacts from the conflict may lead to more cautious lending strategies.
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