For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Mahindra & Mahindra Financial Falls 18% On 66% Drop In Q4 Net Profit

|

On Monday, shares of Mahindra & Mahindra Financial Services Ltd fell nearly 18 percent to an intraday low of Rs 137.10 on NSE.

 

On 15 May, the non-banking finance company (NBFC) reported 66 percent fall in consolidated net profit at Rs 239 crore for March quarter due to higher provisions. It had posted a net profit of Rs 701 crore in the same period a year ago.

Mahindra & Mahindra Financial Falls 18% On 66% Drop In Q4 Net Profit

In order to cover the contingencies that may arise due to COVID-19 pandemic, it incorporated the management overlays in the impairment loss allowance and the total provision during the quarter stood at Rs 681.16 crore, it said in a release.

Total income increased by 8 per cent to Rs 3,140 crore during the latest quarter as against Rs 2,902 crore in January-March 2018-19, Mahindra and Mahindra Financial (Mahindra Finance) said.

Brokerage Motilal Oswal has placed a 'buy' rating on the stock with a target price of Rs 200. It expects healthy, but gradual recovery in the NBFC's disbursements from the second half of FY 2020-21. With a higher share (75 percent) of moratorium availed and collections issues, repayment rates are likely to be lower and thus support AUM (Assets Under Management).

 

Speaking to analysts on Friday, vice-chairman and managing director of Mahindra Finance Ramesh Iyer said that although over 75 percent of its customers have opted for the three-month moratorium on loan repayments, the NBFC is witnessing a gradual uptick in collections.

Read more about: mahindra finance
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X