M&M Financial Services profit plunges 66 pc in Q1 FY20

Mumbai: Mahindra & Mahindra Financial Services Ltd (MMFSL), a provider of financial services in rural and semi-urban markets, has reported a profit after tax of Rs 108 crore during the quarter ended June 30 as against Rs 322 crore during the corresponding quarter last year, marking a decline of 66 percent.

However, the company’s total income increased by 23 percent at Rs 2,838 crore as against Rs 2,302 crore in the same period. MMFSL’s customer base has crossed 62 lakh, said the company in a statement.

Its total value of assets financed for the quarter ended June 30 was Rs 10,598 crore as against Rs 10,339 crore during the same quarter previous year, registering a growth of 3 percent. Standalone assets under management stood at Rs 71,406 crore as against Rs 58,711 crore, clocking a growth of 22 percent in the year-on period.

The company continues to be leading financer for automotive and tractors, including pre-owned vehicles. During the year, growth was higher in the pre-owned and commercial vehicle segment.

“We have maintained our market share and volumes in all our lead products. The company’s capital and debt position is strong and asset-liability management position is well balanced,” MMFSL said.