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Mumbai: Mahindra and Mahindra Financial on Monday reported 34% rise in consolidated net profit at 353 crore for September quarter 2020-21 on impairments of covid-19 pandemic related disruptions.

The company had posted a net profit of 264 crore in the year-ago same period.

During the quarter ended September 30, 2020, the Company has considered an additional charge of Rs.433 crores due to a management overlay, to reflect deterioration in the macroeconomic outlook. As at September 30,2020, the cumulative amount of management overlay provisions stood at Rs. 1,484 crores, it said in a release.

Total income increased by 5% to 3,071 crore during the latest quarter as against 2,902 crore in June-September 2019-20, Mahindra and Mahindra Financial (Mahindra Finance) said.

The standalone Assets Under Management (AUM) stood at Rs.81,682 Crores as on September 30, 2020, as against Rs.72,732 Crores as on the corresponding reporting date last year, registering a growth of 12%.

Tractors, passenger cars and Light Commercial Vehicles (LCVs) are seeing healthy demand, the lender said. Pre-owned vehicles continued to be a growth driver and it expects to see an increase in digitally enabled lending and collections in rural and semi-urban markets.

"The rural market has remained sufficiently insulated from the COVID-19 pandemic and is recovering from its impact. Almost all the Company’s branches are up and running, except in the major metros. After a few months

of disruption due to COVID-19 pandemic and subsequent lockdown, we see that markets are now beginning to look up and the sentiments are turning positive. Businesses are returning back to normal and customer footfalls at the dealerships and our branches have substantially improved," the lender said.

Mahindra Finance expects demand to further pick-up in the upcoming festival season. Government focus on infrastructure and mining sectors is likely to further shore up demand, going forward, it added.

Mahindra Finance stock closed 2.86% down at 130.85 on the BSE, while the benchmark index, Sensex fell 1.33% to 40145.50 points.

Mahindra & Mahindra Financial Services Limited (Mahindra Finance), is one of the leading non-banking finance companies in vehicle and tractor financier, provides loans to SMEs and also offers fixed deposits.

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