Mahindra Finance H1 net up 10%

Mumbai, October 25, 2006: Mahindra & Mahindra Financial Services Ltd (MMFSL), part of the $3.04 billion Mahindra group and a leading player in providing financial services in the rural and semi-urban market, has posted a strong performance for the quarter ended September 30, 2006.

Top line for the quarter ended September 30, 2006 soared by 37% to Rs 196.52 Crore compared to the corresponding period last year, which stood at Rs 142.94 Crore. Net profit for Q2FY07 is higher by 8% to Rs 30.33 Crore from Rs 27.97 Crore in Q2FY06.

Turnover for the first half of F2007 stood at Rs 361.52 Crore, up by 41% compared Rs 257.01 Crore, recorded in the same period of last fiscal. During the same period, net profit increased by 10% to Rs 49.56 crore as against Rs 44.97 crore, posted in the first half of F2006.

Mr. Ramesh Iyer, Managing Director, MMFSL said, "The automobile and tractor market has seen buoyancy in the first half. Also, our tie "� up with Maruti Udyog Ltd, has shown encouraging results with MMFSL having reached a figure of financing 3,000 Maruti cars a month. Our commitment to service the customer at his doorstep saw us increase our branch strength to 380 branches (as on Sept 30, 06) "� an addition of 75 nos in H1 of the current fiscal".

Mr. V. Ravi, Chief Financial Officer, MMFSL said, "The Company has made significant investments for creating the required infrastructure to meet the growing rural demand. Even though some of the set up investments have been incurred during the first half of the year, the complete benefits of the same would be realized in the coming periods."

About Mahindra & Mahindra Financial Services Ltd

Mahindra & Mahindra Financial Services Ltd (MMFSL) is one of India's leading non-banking finance companies focused on providing finance for utility vehicles, tractors and cars in the rural and semi-urban sector. MMFSL is a subsidiary of Mahindra & Mahindra, a leading tractor and utility vehicle manufacturer.

The company has positioned itself between the organized banking sector and local money lenders, offering customers competitive, flexible and speedy lending services. MMFSL has a network of 380 branches spread across India and has entered into more than 550,000 customer contracts since inception. MMFSL listed on National Stock Exchange and Bombay Stock Exchange on March 17, '06.