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Q4 Results: Mahindra & Mahindra Financial Services’ Profit Jumps 87%

The rural market contributed better than the urban market, says Ramesh Iyer.

Tractors sit in a lot awaiting shipment at the Mahindra & Mahindra Ltd. Plant in Mumbai, India. (Photographer: Abhijit Bhatlekar/Bloomberg News)
Tractors sit in a lot awaiting shipment at the Mahindra & Mahindra Ltd. Plant in Mumbai, India. (Photographer: Abhijit Bhatlekar/Bloomberg News)

Mahindra & Mahindra Financial Services Ltd.’s profit for the March-ended quarter rose 87 percent on a yearly basis despite a slowdown in the automobile sector.

“The rural market contributed better than the urban market,” Ramesh Iyer, managing director and vice chairman of the non-bank lender, told BloombergQuint, adding that the company has greater presence in that segment of the market.

The company’s disbursements shrank by 1 percent on a yearly basis and 12 percent sequentially in the fourth quarter. “Lower disbursement...is caused mainly by our conscious decision to go slow on the small and medium-sized enterprises segment, given the market condition overall,” Iyer said.

“In vehicles segment—which is our main segment—we actually have had a 10-12 percent growth,” he said.

Q4 Earnings Highlights (YoY)

  • Net interest income jumps 26.7 percent to Rs 1,267 crore
  • Net profit spikes 87 percent to Rs 588 crore, from Rs 314.4 crore
  • Impairment gain of Rs 114.5 crore in the quarter
  • Declares dividend of Rs 6.5 per share

Watch the full interview here: