Mahindra Fin Q3 profit drops 10 pc to Rs 826 crore

Mumbai, Jan 28 (PTI) Non-bank lender Mahindra and Mahindra Financial Services on Wednesday reported a 10 per cent drop in consolidated net profit for the December quarter to Rs 826 crore.

The company had

posted a consolidated net profit of Rs 918 crore in the year-ago period.

On a standalone basis, its net profit dropped 10 per cent to Rs 810 crore as against Rs 899 crore in the year-ago period.

The company clarified that the implementation of the new labour code led to an impact of Rs 97 crore during the quarter, and added that the profit in the year-ago period included a provision of Rs 436 crore.

Adjusted for the one-time provision on labour code and the release of the provisions in the year-ago period, the profit after tax nearly doubled to Rs 907 crore during the quarter.

Its core net interest income grew 27 per cent to Rs 2,661 crore during the reporting quarter, on the back of a 0.9 per cent expansion in the NII margin to 7.5 per cent and a 12 per cent jump in the loan book.

On the asset quality front, the gross stage three assets or the loans unpaid for over 90 days stood at 3.8 per cent of the total advances, and the company said they were within the guided range.

The credit costs zoomed to Rs 470 crore during the quarter from Rs 9 crore in the year-ago period.

The overall capital adequacy stood at 19.8 per cent with the core tier-I at 17.4 per cent.

The company scrip closed 1.57 per cent up at Rs 396.60 apiece on the BSE on Wednesday, as against gains of 0.60 per cent on the benchmark. PTI AA TRB