M&M Finance Q3 Net Profit At INR 894 Crore Net Interest Income at INR 1,580 crore increased by 14 per cent y-o-y reflecting widening of spread

Mahindra and Mahindra (M&M) Financial Services on Wednesday reported a net profit of INR 894 crore for the third quarter ended December 2021 compared with a loss of INR 274 crore during the same quarter last year.

Net Interest Income at INR 1,580 crore increased by 14 per cent year-on-year (y-o-y) reflecting widening of spread. "Operating profit for the quarter at INR 1,062 crore grew 5 per cent sequentially and 4 per cent y-o-y reflecting improved operating performance. Impairment reversals led to a healthy profit after tax (PAT) at INR 894 crore for the quarter as against loss of INR 274 crore during Q3 FY21," said a company statement.

With increased economic activity and collection efforts being strong, overheads to average assets were at 2.85 per cent during the quarter, added the statement.

The third quarter witnessed some normalcy returning. Mobility improved further and there was better visibility on cash flows in farms, infrastructure and demand for vehicles. "In the tractor financing segment, we have witnessed a rise in market share by expanding our presence. This has led us to regain the number one position in tractor financing. With our smart branches, we are offering very attractive programs for new product lines. With the millennium mindset changing, consumers want to be asset-light, thereby making our leasing and subscription business, Quiklyz, the new popular way to own the vehicle," quoted the statement.

For the October-December 2021 quarter, total disbursement stood at INR 8,032 crore, a 28 per cent growth year-on-year and a 24 per cent growth sequentially.

Mahindra and Mahindra Financial Services Limited, part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the company has over 7.3 million customers and an asset under management (AUM) of over $11 billion.