Mahindra & Mahindra Financial Services on Wednesday reported a 86% year-on-year growth in its net profit at Rs 588 crore for the fourth quarter of FY19. The profits rose on account of a 37.2% increase in its total income and write-offs in provisions. The vehicles finance lender had reported a net profit of Rs 314.4 crore in Q4FY18.
Total income in Q4FY19 came in at Rs 2,479 crore, up 37.2% y-o-y pushed up by a higher net interest income, which rose by 28.7% to Rs 131 crore. The vehicle finance lender had a write-back in provisions amounting to Rs 11.4 crore for the quarter ended March 2019.
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The lender’s asset quality improved q-o-q with gross NPA of 5.9%, against 9% in Q4FY18. The stage-3 provisioning coverage ratio stood at 19.2%. During the quarter, the lender disbursed loans worth Rs 46,000 crore, marking an increase of 22% y-o-y. The net NPA at 4.8%, lower than 6.2% in the corresponding quarter last year. The lender’s expenses were up sharply during the quarter.
