Kotak Mahindra Profit Jumps To Rs 61 Crore

Kotak Mahindra Finance Ltd(KMFL) has posted a four-fold jump in net profit to Rs 61.10 crore for the year ended March 2000, against Rs 12.18 crore in the previous year. Profit before tax stood at Rs 90.60 crore against Rs 34.58 crore in the previous year.

The jump in profit has been on account of improved capital market conditions, significant dividend received from subsidiaries, growth in retail finance and aggressive recovery of non-performing assets.

The company had earlier announced an interim dividend of 18 per cent.

The company is in the process of completing the US Gaap accounting for the year ending March 31,2000.

 

However, the company's net worth stood at Rs 475 crore, which implies that the company will have to increase it by another Rs 25 crore to be eligible to enter the insurance sector. KMFL has already expressed its eagerness to enter the sector on its own.

According to K V S Manian, vice-president, KMFL, "The company has received Rs 25 crore as dividend from subsidiaries, made recoveries worth Rs 13 crore, investment profit amounted to nearly Rs 20 crore while profit from retail loans would have contributed to the extent of Rs 10 crore."

Net non-performing assets dipped from Rs 32.48 crore to Rs 19.10 crore for end March 2000.

The net bad loans level stood at 1.62 per cent of its assets against 3.17 per cent in the previous year.

The company plans to focus on commercial vehicles and consumer loans this year.

It has disbursed Rs 200 crore towards vehicle financing against Rs 83 crore in the previous year and targets to disburse Rs 350 crore in this fiscal.

The consumer-finance division would focus on financing of initial public offerings, personal loan, holiday loans and technology financing.

Over the last one month, KMFL has started an private equity fund with a target to raise Rs 50 to 100 crore.

Meanwhile, Kotak Mahindra Capital Company, the investment subsidiary of KMFL, has reported net profit of Rs 35.02 crore against Rs 13.45 crore recorded last year.