Mahindra & Mahindra Financial Services (MMFSL), the wholly-owned subsidiary of automotive giant Mahindra & Mahindra, reported a 42.95 per cent increase in net profit at Rs 109.95 crore for the quarter ended March 31, 2009, as against Rs 76.91 crore reported in the corresponding period last year.
The non-banking finance company attributed the jump in its bottom line to efficient recovery mechanism. “Our collection efficiency stood at 118 per cent during the quarter. This means over every regular recovery amount of Rs 100, Rs 18 came from the written-off accounts,” Managing Director Ramesh G Iyer said.
Consequently, the company’s net non-performing assets (NPAs) declined 2.8 per cent compared to 2.9 per cent a year ago, while total income has stood at Rs 401.51 crore, up 10.27 per cent compared with Rs 364.10 crore reported in the same period a year ago.
For the year ended March 31, 2009, the firm has posted a net profit of Rs 219.6 crore, 21.25 per cent higher compared with Rs 181.1 crore for the previous year.Total income for the period rose 13.24 per cent to Rs 1,400.4 crore as against Rs 1,236.6 crore the year ago.
In 2008-09, the company’s total disbursement rose 7 per cent to Rs 6,281 crore.
Meanwhile, the NBFC is planning to raise capital through non-convertible debentures (NCDs) in the current financial year. Chief Financial Officer V Ravi said, “Nothing is finalised as of yet, but we would like to tap the NCD market in 2009-10.”
The company raised around Rs 8,000 crore during 2008-09 and would raise at least a similar amount in the current fiscal, he added.
The capital adequacy ratio (CAR) of the company stood at 20 per cent. Speaking about the recent deposit scheme launched by the company, Ravi said that it has already mobilised around Rs 72 crore in the first 45 days.
