 "Mahindra Fin net down 37% on more loan provisions, write-offs")
Total income rose nine per cent to Rs 1,513 crore as against Rs 1,384 crore in the corresponding quarter last year. Loan provisions and write-offs grew 45 per cent to Rs 337, from Rs 233 crore in the comparative period.
On a standalone basis, net profit was down 43 per cent to Rs 89 crore, from Rs 155 crore in April-June 2014. Total assets under management grew 10 per cent to Rs 37,554 crore by end-June as against Rs 34,271 crore in June 2014.
The company said it had been consciously moderating disbursement growth in view of cash flow pressures faced by customers in semi-urban and rural markets. Income growth was impacted by the lower disbursement. In view of unseasonal rain and with less economic activity, customer cash flows have remained under pressure, resulting in reduced collections, it added.
The company follows the norms for income recognition, asset classification and provisioning for non-performing assets as prescribed by Reserve Bank of India (RBI) for non-bank finance companies (NBFC) and has also been making additional provisioning on a prudential basis.
In the quarter, it made an additional investment of Rs 10.43 crore ($1.63 million) in Mahindra Finance USA LLC, a joint venture with De Lage Landen Financial Services there.
Mahindra Insurance Brokers, a subsidiary, had its net profit was up 13 per cent to Rs 9.6 crore as against Rs 8.5 crore in April-June 2014. Its income grew 19 per cent to Rs 31.7 crore from Rs 26.6 crore.Its home finance unit, Mahindra Rural Housing Finance, posted a 31 per cent rise in net profit to Rs 6.8 crore from Rs 5.2 crore. Total income rose 48 per cent to Rs 99.6 crore from Rs 67.4 crore.