Mahindra & Mahindra Financial Services Ltd (MMFSL) has posted a 98 per cent rise in the profit before tax (PBT) to Rs 208 crore in the first quarter ended June 30, 2020 (Q1Fy21) as against PBT of Rs 105 crore in the corresponding quarter last year (Q1FY20).
The net profit rose by 129 per cent to Rs 156 crore in Q1FY21 as against Rs 68 crore in Q1FY20.
The total Income increased by 10 per cent to Rs 2,655 crore in Q1FY21 as against Rs 2,413 crore in the same quarter of previous year. Almost 75 per cent of the customers opted for moratorium on their EMIs, which impacted the company’s daily cash flows in the first quarter, the company said in a statement.
The impairment on financial instruments was Rs 842.7 crore in the first quarter ended June 2020 as against Rs 619.6 crore in Q1FY20.
Its gross non-performing assets (NPAs) stood at 9.19 per cent at the end of June 2020 as against 8.17 per cent during the corresponding period last year. The net NPAs declined at 5.72 per cent on June 30, 2020 from 6.27 per cent in the corresponding period last year. The provisioning coverage ratio improved to 40.1 per cent as against 24.9 per cent a year ago.
The standalone assets under management (AUM) rose 14 per cent Rs 81,436 crore as on June 30, 2020, from Rs 71,406 crore in Q1FY20. The Total value of assets financed for the quarter ended June 30, 2020, was Rs 3,489 crore.
The company has maintained market share in its lead products, but with declining vehicle sales post lockdown, the disbursements have been lower.
After a few months of disruption, markets are now embarking on a new beginning to grow in a post-pandemic environment. The company is now witnessing collections moving at a much faster pace from mid-June 2020 onwards, with many of the customers who have availed moratorium, paying their installments ahead of their due dates. “During this quarter we have seen around 40 per cent of moratorium availed customers repaying installments”, company said.