Mahindra Finance's profit jumps to Rs 356 crore
The Mahindra Group's financial services arm, Mahindra Finance, said today that improved cash flows in rural markets have helped its net profit jump by 62 per cent to Rs 356 crore in Financial Year (FY) 2010.business Updated: Apr 22, 2010 19:38 IST
The Mahindra Group's financial services arm, Mahindra Finance, said on Thursday that improved cash flows in rural markets have helped its net profit jump by 62 per cent to Rs 356 crore in Financial Year (FY) 2010.
The company's profit stood at Rs 220 crore in FY2009.
The company's total income on a consolidated basis increased by 14 per cent to Rs 1,596 crore in the same period as against Rs 1,400 crore in the previous fiscal.
"Improved cash flow in semi-urban and rural areas helped us increase business volumes and productivity. Special recovery drives also led to a substantial improvement in collection efficiency and NPA (Non-performing assets) reduction," Mahindra Finance Managing Director Ramesh Iyer said.
The company has managed to bring down its NPAs to below one per cent in FY2010 from 2.5 per cent last fiscal, Iyer said.
The company's total Assets Under Management (AUM) stood at Rs 10,329 crore. Its value of assets financed was at Rs 8,195 crore, up 42 per cent, as against Rs 6,281 crore in FY2009.
Iyer said that growth came from the finance of tractors and automobiles, especially cars, and also the financing of second-hand vehicles, which the company had started last fiscal year.