M&M Financial gains after strong Q2 outcome

Mahindra & Mahindra Financial Services rose 2.77% to Rs 279.75 at 15:10 IST on BSE after consolidated net profit rose 20% to Rs 232 crore on 32% growth in total income to Rs 1291 crore in Q2 September 2013 over Q2 September 2012.

The Q2 result was announced during trading hours today, 21 October 2013.

Meanwhile, the S&P BSE Sensex was down 8.81 points or 0.04% at 20,874.08.

On BSE, 1.50 lakh shares were traded in the counter as against average daily volume of 1.08 lakh shares in the past two weeks.

The stock was volatile. The stock rose as much as 3.37% at the day's high of Rs 281.40 so far during the day. The stock lost as much as 0.49% at the day's low of Rs 270.85 so far during the day.

On standalone basis, Mahindra & Mahindra Financial Services (MMFSL)'s net profit rose 18% to Rs 221 crore on 31% growth in total income to Rs 1213 crore in Q2 September 2013 over Q2 September 2012.

MMFSL said that the company maintained healthy growth of business and profits despite slowdown in the auto industry growth and continuing high cost of borrowings through control of transaction costs and maintaining high collection efficiency levels.

Mahindra Finance, during the half year ended 30 September 2013, registered a disbursement growth of 17% against the corresponding period last year, maintaining its leadership position for vehicles and tractors in the rural and semi-urban markets, MMFSL said in a statement.

MMFSL's total assets under management stood at Rs 31146 crore as on 30 September 2013, as against Rs 23770 crore as on 30 September 2012, a growth of 31%.

MMFSL said that the company continued to broad base its consortium of lenders by bringing in new banks, mutual funds, insurance companies and trusts.

Mahindra & Mahindra Financial Services, part of the $16.2 billion Mahindra Group, is one of India's leading non-banking finance companies (NBFC) with a pan India presence. Focused on the rural and semi-urban sector, it provides finance for vehicles and tractors and has the largest network of branches amongst NBFCs operating in these areas. The company currently has a network of 687 offices.

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