Non-banking finance company Mahindra Finance on Monday
reported a 34% year-on-year jump in the fourth quarter (Jan-March) net profit
at Rs 620 crore aided by its 37% (at Rs 20,643 crore) loan growth. Total income
shot up 41% at about Rs 2,800 crore.
“The loan growth has primarily driven the net profit,” V
Ravi, Chief Financial Officer told Moneycontrol.com
“Moreover, our (repayment) collection efficiency has
increased. This helped us to maintain our asset quality. Loan repayments also
happened due to better crop season last year. Next year too, we will continue
to perform well. We do not see any regulatory concern. We are already compliant
with lot many things. Further, regulations are a kind of blessing in disguise
for us.”
The company’s other income component doubled from Rs 4 crore
to Rs 8 crore on account of bill discounting wherein it earns commission.
However, provisions and write offs ramped up many folds to
Rs 14 crore as against Rs 2 crore a year back. Higher provisioning norms as
recommended by the Reserve Bank of India during the year, may have caused the
spurt.
The NBFC's current capital adequacy ratio stood at 18%.
Keeping pace with its expansions, according to Ravi, it would raise tier-I capital
in FY13 besides moping up tier II capital through non-convertible debenture
issues.
For the full fiscal year, net profit grew at a similar pace
by 34% to Rs 620 crore while total income rose 41% to Rs 2,795 crore.
The company has significantly improved its performance as a
car and utility vehicle financier. It has also made a significant growth in
financing of heavy commercial vehicles and construction equipment, said a
release sent by the company.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
No comments:
Post a Comment