Q2 Results: M&M Financial Expects Pre-Owned Vehicle Segment To Drive Growth In FY20
Heavy monsoons in U.P., Bihar and Maharashtra affected disbursements in the second quarter, says M&M Financial’s Iyer.
Mahindra & Mahindra Financial Services Ltd. expects disbursements in pre-owned vehicle segment and utility vehicles to drive growth for the rest of the financial year. That’s according to Ramesh Iyer, its managing director and vice-chairman.
“Heavy monsoons in U.P., Bihar and Maharashtra has caused a loss of the number of productive days and therefore the footfall has been low [in the quarter ended September],” said Iyer told BloombergQuint. “Our pre-owned segment is doing very well and our gain in market share for utility vehicles and tractors has helped us to maintain growth.”
M&M Financial also maintained its assets-under-management growth forecast of 15-20 percent for the current fiscal. “Clearly the growth engine for us is going to be pre-owned vehicles for the balance of the period,” Iyer said.
Shares of the non-bank lender declined 3.8 percent intraday to Rs 328.30 apiece compared with a 0.24 percent gain in the Nifty Index.
Q2 Results (YoY)
- Net interest income rose 7.2 percent to Rs 1,238.6 crore.
- Profit after tax fell 34 percent to Rs 251.77 crore.
- Gross bad loans at 7.2 percent versus 7.4 percent (QoQ)
- Net NPAs at 5.8 percent versus 5.7 percent (QOQ)
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