Mahindra & Mahindra Financial Services Ltd.'s profit fell in the fourth quarter, missing analysts' estimates.
The lender's standalone net profit fell 9.5% year-on-year to Rs 618.99 crore in the quarter ended March, according to an exchange filing on Saturday. Analysts polled by Bloomberg estimated a net profit of Rs 658.84 crore.
Mahindra Finance Q4 Results Highlights: (Standalone, YoY)
Total Income up 21.2% to Rs 3,706.10 crore.
Net profit down 9.5% to Rs 618.99 crore. (Bloomberg estimate: Rs 658.84 crore)
The board recommended a dividend of Rs 6.30 per equity share of face value of Rs 2 each.
A one-time provision of Rs 136 crore towards fraud at one of the company's branches. The company's capital currently standing at 18.9%. Total disbursements rose 11% year-on-year to Rs 15,292 crore in Q4
The financial year 2023–24 witnessed broad-based growth with disbursements of Rs 56,208 crore, delivering a growth of 13% year-on-year.
In FY24, the company strengthened its position in financing passenger vehicles, pre-owned vehicles, and tractors. Growth in nonvehicle businesses such as SMEs, digital finance, leasing, and other lending and non-lending financial solutions segments contributed towards achieving steady annual disbursement numbers, according to the exchange filing.
"This positive loan growth trend also led to the expansion of business assets, now standing at Rs. 1,02,597 crore, reflecting a 24% YoY growth," it said in the exchange filing.
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