1. Mahindra and Mahindra Financial Services standalone net falls 46%

Mahindra and Mahindra Financial Services standalone net falls 46%

Total revenue rose 16.53% to Rs 1,603.07 crore on a year-on-year basis. Operational income grew 16.54% to Rs 1,592.37 crore in the first quarter.

By: | Mumbai | Published: July 25, 2017 5:32 AM
Mahindra, Financial Services, standalone net falls 46% Mahindra and Mahindra Financial Services on Monday reported a 45.52% year-on-year decline in its first quarter standalone net profit at Rs 47.38 crore. (Reuters)

Mahindra and Mahindra Financial Services on Monday reported a 45.52% year-on-year decline in its first quarter standalone net profit at Rs 47.38 crore. The company witnessed a large increase in loan provisions and write-off, which stood at Rs 425.82crore in the first quarter, compared with Rs 224.53 crore in the year-ago period. In the fourth quarter of FY17, the figure stood at Rs 361.41 crore. Total revenue rose 16.53% to Rs 1,603.07 crore on a year-on-year basis. Operational income grew 16.54% to Rs 1,592.37 crore in the first quarter. Other income stood at Rs 10.7 crore, compared with Rs 9.25 crore in the same period last year. “The company currently has a network of 1,183 offices and the total assets under management (AUM) of Rs 47,576 crore as on June 30, 2017, as against Rs 41,662 crore as on June 30, 2016, a growth of 14%,” MMFSL said in a release. On a consolidated basis, the company posted over 45% decline in its net profit at Rs 58.42 crore. Of its subsidiaries, Mahindra Insurance Brokers posted a net profit at Rs 13.2 crore while Mahindra Rural Housing Finance registered a net profit of Rs 2.9 crore. The company said in a release that with effect from quarter ended June 30, 2016, it had started considering the estimated realisable value of underlying security, which conforms to the RBI norms, for loan assets to determine 100% provisioning for assets which were 24 months overdue. This had resulted in lower provision of Rs 193 crore for the quarter ended June 30, 2016, and Rs 83 crore for the year ended March 31, 2017 with a consequent impact on the profit before tax. “In the quarter ended June 30, 2017, the company has made additional provision of Rs 83 crore against the above mentioned 100% provision cases,” the release said.

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