Mahindra Finance Q2 Net Profit Up 212%However, it's total Income declined 4 per cent to INR 2,951 crore during Q2 FY22 compared with INR 3,071 crore in the same period last fiscal
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Mahindra & Mahindra Financial Services Ltd reported 212 per cent increase in the profit after tax (PAT) at INR 1,103 crore during the quarter ended September 30, 2021. The sequential recovery has been attributed to healthy operating performance coupled with reversal of impairment cost. The company recorded a PAT of INR 353 crore during the corresponding quarter last year.
However, it's total Income declined 4 per cent to INR 2,951 crore during the quarter compared with INR 3,071 crore in the same period last fiscal.
"During the quarter, the company increased its shareholding in Ideal Finance Ltd (IFL), Sri Lanka from 38.2 per cent to 58.2 per cent. IFL is now a subsidiary of the company. This stake increase has resulted in revaluation of existing equity stake in IFL, which led to a one-time revaluation gain of INR 21 crore, which is shown as an exceptional item in the second quarter consolidated financials," Mahindra Finance said in a statement.
The disbursements were at INR 6,475 crore, a growth of 61 per cent y-o-y and 67 per cent on a sequential basis. "But for the supply side issues, the disbursements would have grown further. The company improved market share in its lead products," added the statement.
During the quarter, the company's collection efficiencies improved month on month—95 per cent in July, 97 per cent in August and peaking at 100 per cent in September.
As collection efforts intensified, the gross non performing assets (NPA) improved sequentially to 12.7 per cent from 15.5 per cent as at September end. The company expects further improvements in quarters to come.
Mahindra Finance is a leading provider of financial services in the rural and semi urban markets. "The impact of the second wave of COVID-19 in the semi urban & rural market was felt severely during the first quarter of the current financial year. The increased vaccination drives and opening up of the travel industry has worked well for earn-and-pay customers. We have seen a rebound in economic activities with most high frequency indicators inching towards pre-pandemic levels. We have seen normal working throughout the quarter and with 95 per cent of our employees vaccinated, our executives are able to reach out to our customers," the company said in a statement.
