Mahindra Finance Q2 results: Net profit jumps 34% to Rs 353 cr

Mumbai: Non-bank lender M&M Financial Services on Monday reported a 34 per cent rise in its profit at Rs 353 crore in the September quarter as the rural markets remained sufficiently resilient, helping the company post income growth in the period under review.

Total income increased 5 per cent at Rs 3,071 crore against Rs 2,936 crore. In the corresponding quarter last year, profit was Rs 264 crore.

“The rural market has remained sufficiently insulated from the Covid-19 pandemic and is recovering from its impact,” the lender said. “After a few months of disruption due to Covid-19 pandemic and subsequent lockdown, we see that markets are now beginning to look up and the sentiments are turning positive. Businesses are returning to normal and customer footfalls at the dealerships and our branches have substantially improved.”


The lender took into account an additional charge of Rs 433 crore due to a management overlay to reflect deterioration in the macroeconomic outlook. As of September 30, the cumulative amount of management overlay provisions stood at Rs 1,484 crore.

Tractors, passenger cars and light commercial vehicles (LCVs) are seeing healthy demand, the lender said. Pre-owned vehicles continued to be a growth driver and it expects to see an increase in digitally-enabled lending and collections in rural and semi-urban markets.

Mahindra Finance expects demand to further accelerate in the upcoming festival season. The government focus on infrastructure and mining sectors is likely to further boost demand.