Mahindra Finance Reports 45% Net Profit Surge in June Quarter

Mahindra and Mahindra Financial Services reported a 45% increase in net profit for the June quarter, reaching Rs 513 crore. The non-bank lender's total income grew by 20%, and assets under management rose by 23%. The firm's collection efficiency remained strong, and non-performing assets were within acceptable limits.

Mahindra and Mahindra Financial Services on Tuesday reported a significant 45% surge in net profit for the June quarter, amounting to Rs 513 crore. This performance marks a notable rise from the Rs 353 crore recorded in the same quarter the previous year.

The non-bank lender witnessed a 15% growth in core net interest income, which totaled Rs 1,932 crore, although its interest margin narrowed slightly to 6.6% from 7.1% in the previous quarter. Additionally, the company's total income experienced a 20% increase, reaching Rs 3,760 crore, while assets under management grew by 23%, hitting Rs 1.06 lakh crore.

Mahindra Finance also reported a decline in credit costs to Rs 448 crore from Rs 526 crore, which contributed to its profit growth. The company maintained a collection efficiency of 94%, with non-performing assets remaining within acceptable thresholds. The company's stock closed at Rs 295.90 on the BSE on Tuesday, a 1.16% increase from its previous close.