Strong recoveries drive Mahindra Finance's Q4, net profit jumps 1.8 times

Better product-mix with rising share of pre-owned vehicles helped Mahindra Finance's profitability

Mahindra and Mahindra Financial Services surprised the Street with healthy March-2019 quarter (Q4) numbers on most fronts. The stock, however, fell by about 4 per cent in Thursday’s trade (results were announced after market hours on Wednesday) due to a subdued growth outlook for FY20.

First on the positives, strong recoveries and provisioning write back of Rs 115 crore in Q4 resulted in gross non-performing assets (NPAs) improving by 180 basis points sequentially to 5.9 per cent. The financier’s net interest income rose by 29 per cent year-on-year to Rs 1,311 crore in Q4, while net profit shot up by