Q2 Results: Won’t Deviate From Growth Strategy, Says M&M Financial Services
Liquidity pressures and higher cost of funding in the country’s non-banking financial companies will not deviate Mahindra & Mahindra Financial Services Ltd. from its growth path.
That’s according to its Vice Chairman and Managing Director Ramesh Iyer, who said the company has enough collections in its books to pay its dues.
“We are conscious of the fact that the industry is going through that pressure, banks would take a little more time to disburse in their own internal processes, but that doesn't necessarily guide us to believe that we need to re-calibrate our growth,” he told BloombergQuint.
So far, “we haven't had any kind of a message from any of our lenders saying that ‘we wouldn't be able to give you the money’ or that ‘go slow, don't draw money at this stage’, etc,” he assured.
Iyer said he’s confident that the company can report a strong growth in assets under management for the second half of the financial year. “A 20-22 percent growth in disbursement shouldn't be very difficult.”
The company’s net profit more than doubled in the September-ended quarter for the financial services provider.
Key financial highlights (YoY):
- Net profit grew 2.3 times to Rs 381 crore
- Revenue rose 38.6 percent to Rs 2,103 crore