Mahindra Finance Q4 net profit up 60 pc

Mahindra Finance Limited on Friday reported a net profit of Rs 47.2 crore for the quarter ended March 31, 2006.

Mahindra Finance Limited on Friday reported a net profit of Rs 47.2 crore for the quarter ended March 31, 2006, up by 60 per cent against Rs 29.32 crore for the corresponding quarter of previous year.

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Sales for the quarter stood at Rs 191.04 crores, up at 53.32 per cent from last year's Rs 124.6 crore.

The company attributed the rise in profit to its widened reach, "Reach is our strength. We have opened another 50 branches and we are spread across the country. The rural business has been exciting," Mahindra Finance Ltd Managing Director Ramesh Iyer told reporters.

The company recorded a rise of 32 per cent during the financial year 2005-06 at Rs 108.27 crore against Rs 82.2 crore a year ago.

However, the company said it held the margin pressure with interest rates going up, "More than lending rates going down, we have felt pressure from rising borrowing rates," Iyer said.

The company plans to open another 50 branches this year to increase its penetration in the rural areas.