Max Financial Services' consolidated net profit slumped 96.7% to Rs 6.67 crore on 40.2% fall in total income to Rs 4265.64 crore in Q4 March 2020 over Q4 March 2019.
Profit before tax (PBT) stood at Rs 131.06 crore in Q4 FY20, down by 34.9% from Rs 201.33 crore in Q4 FY19.
Provisions and write offs in the fourth quarter were at Rs 58.33 crore as compared to Rs 2.52 crore in the corresponding quarter last year.
Consolidated net profit fell 34.5% to Rs 272.85 crore on a 6.5% decline in total income to Rs 18241.76 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 442.48 crore in FY20, down by 8% from Rs 480.84 crore in FY19.
Max Financial said that the net profit was down largely due to shift in product mix towards Non-Par products, investments in proprietary channel, provision for impairment and one-time tax expense on settlement of tax dispute under The Direct Tax Vivad Se Vishwas Scheme.
It added that fall in the total income was due to volatility in capital markets in March 2020 caused by COVID-19, causing a mark-to-market loss on debt and equity portfolio.
During the quarter ended March 2020, the company announced that Axis Bank will acquire 29% stake in Max Life (subsidiary) and post completion of series of transactions Max Life will be a 70:30 joint venture between the company and Axis Bank.
The scrip rose 1.18% to Rs 443.40. It had tumbled 5.69% to hit the day's low at Rs 413.30 during trade today.
Max Financial Services (MFS), a part of the Max Group, is the holding company for Max Life.
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