Mahindra & Mahindra Financial Services on Tuesday reported a 27% year-on-year decline in its net profit for the September quarter at `114.05 crore, as higher operating expenses and finance costs weighed on the bottom line.
Total income came in at `1,720.64 crore, around 9% higher than the same quarter last year. However, operating expenses rose by 22% over the period to `761.12 crore.
This, coupled with a surge in finance cost – which rose 11% to `789.44 crore, contributed in keeping the NBFC’s bottom line subdued.
In the quarter under review, M&M Finance moved to a 120 days system for NPA provisioning as against 135 days in the same period last year. The company has a practice of making additional provision, over and above what the Reserve Bank of India norms require it to, and said that the cumulative additional provisioning till date stood at `673 crore.
During the quarter ended September, the Mahindra group company disbursed loans totalling `7,543 crore as against `5,866 crore in the corresponding quarter a year ago, marking a growth of 29% in total disbursal.