Mahindra Finance Q3 consolidated net at Rs 992 cr after year-ago loss

Sequentially, however, profit fell by 10% from Rs 1,103 crore

Mahindra & Mahindra Financial Services Ltd posted consolidated net profit of Rs 992 crore in the third quarter ended December 2021 (Q3Fy22) as against loss of Rs 223 crore in the same quarter of Fy21.

Sequentially, however, net profit fell by 10 per cent from Rs 1,103 crore in the second quarter ended September 2021 (Q2FY21).

On a standalone basis, net profit stood at Rs 894 crore in Q3FY22 as against net loss of Rs 274 crore in Q3Fy21. Sequentially, its net profit was down by 13 per cent from Rs 1,023 crore in Q2FY22.

Its standalone net interest income (NII) rose by 14 per cent year on year basis to Rs 1,580 crore in Q3FY22 from Rs 1,384 crore. Sequentially, NII rose six per cent from Rs 1,493 crore in Q2FY22, according to an analyst presentation.

On provisions and write-offs, the company had a benefit of Rs 148 crore in Q3FY22 as against the huge amount Rs 1,387 crore it set aside in Q3FY21. Sequentially, its benefit declined by 60 per cent from Rs 367 crore in Q2FY22.

Its gross non-performing assets (NPAs) stood at 11.3 per cent and net NPAs stood at 5.63 per cent at end of December 2021.

Mahindra Finance in a statement said the third quarter witnessed some normalcy returning. Mobility improved further and there was better visibility on cash flows--both farm & infra and demand for vehicles.

For the Q3FY22, total disbursement stood at Rs 8,032 Crore, a 28 per cent growth YoY (and a 24 per cent growth sequentially). Also, collection efficiency during the quarter stood at 95 per cent, as compared to Q3 of last year at 88 per cent.

The gross business assets were at Rs 63,944 crore as on December 2021, as against Rs 66,525 crore a year ago. Sequentially, there has been a marginal increase, it added.

Its capital adequacy stood at 26.8 per cent with tier-I of 23.3 per cent at end of December 2021.