Mahindra & Mahindra Financial Services on Tuesday reported a standalone net loss of Rs 15.6 crore as against a net profit of Rs 67.16 crore in the same quarter last year as operational expenses, led by provisions, and higher finance cost weighed on the company’s bottomline.
The company’s total income came in at Rs 1,503.5 crore, around 7% higher than in the same quarter last year. However, due to a fall in securitisation income and slow pace of growth in overall revenue, coupled with higher finance cost led to net interest income falling by 5% over the period under review. Securitisation income, which stood at Rs 45.2 crore a year ago, fell into the red in the quarter under review.
The company’s total expenses rose by 19% over the period to Rs 783.5 crore. The rise in expenses was primarily due to a surge in provisions, which came in at R4,19.0 crore, up 38% on year.“The company is required to recognise NPA based on 4 months’ overdue by end of FY 2017, which the company has been following with effect from financial year ended March 31, 2016,” the company said in a statement.