M&M Financial Services’ Q2 Profit Misses Estimates
Auto and home loan lender Mahindra & Mahindra Financial Services Ltd. reported a loss for the sixth straight quarter, missing analyst estimates.
The Mahindra group company’s net profit declined 17.7 percent to Rs 77.99 crore in the three months ended September over the year-ago period. Consensus estimate of analysts tracked by Bloomberg stood at Rs 164 crore.
The topline however beat analyst estimates, rising 11.3 percent to Rs 1,660.7 crore compared to the same quarter last year. Assets under management grew 14 percent to Rs 49,918 crore due to good traction in vehicle sales in the quarter.
Gross non performing assets stood at 10.3 percent compared to Rs 10.5 percent in the quarter ended June. Net NPAs stood at 6.5 percent. M&M Financial, one of India's largest non-bank rural-focused lender, also made an additional provision of Rs 247 crore during the quarter.