Mumbai: Mahindra & Mahindra Financial Services Ltd on Thursday posted 30.91% rise in Jan-March net profit on better cash flows from semi-urban areas and recovery.
Net profit in the March quarter was at Rs144 crore, up from Rs110 crore a year ago.
“Recovery drives resulted in improvement in collection efficiency and non-performing asset reduction,” Ramesh Iyer, managing director, told reporters at a press conference.
The vehicle financing arm of Mahindra & Mahindra saw net bad loans fall to 0.9% in 2009-10, from 2.6% a year ago, Iyer said.
In FY10, borrowing cost fell by 3-4% expanding margin, he said.
“We are looking at growth opportunities in second-hand vehicles and construction equipment financing.”
About 60% of the firm’s lending goes to Mahindra products, which includes cars, utility vehicles and tractor.
The company, with a capital adequacy of 18% and over Rs10,000 crore worth of assets under management, has headroom to borrow up to Rs6.000-8,000 crore in the current financial year to fund loan growth, said V. Ravi, chief financial officer.
Shares in the company ended up 2.4% at Rs405.85 in the Mumbai market that ended up 0.58% percent.