You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Max Financial Q4 PAT tumbles 97% to Rs 7 cr

Business Finance

Capital Market 

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.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, May 27 2020. 15:08 IST