Mahindra Finance Sees 36% Growth Amid Sluggish Vehicle Finance

Mahindra Finance reported a 36% increase in its net profit for the September quarter, despite a slowdown in vehicle finance and mixed results across its subsidiaries. Core net interest income rose 19%, while a significant portion of stressed assets emerged from the tractor segment.

In a notable financial update, Mahindra Finance announced a 36% increase in its consolidated net profit, reaching Rs 390 crore for the September quarter. This marks a significant climb from the Rs 287 crore noted in the same period last year.

On a standalone basis, Mahindra Finance's net went up by 57% to Rs 369 crore for the September quarter. However, this was a 25% decline from the Rs 513 crore recorded in the previous June quarter.

The core net interest income experienced a 19% year-over-year boost, driven by a 20% rise in the gross loan book. Despite these gains, a slowdown was seen in the vehicle finance sector, which only grew by 2% in the first half of the year. Additionally, the tractor segment was responsible for 40% of the increase in stressed assets.