Mahindra Finance Q1 profit tumbles 46% to Rs 58 crore

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Mahindra & Mahindra Financial Services (Mahindra Finance) has reported 46 per cent decline in net profit at Rs 58.42 crore for the first quarter ended June 30.

The company posted a net profit of Rs 107.64 crore in the corresponding quarter of 2016-17 fiscal.

The total income (consolidated) increased to Rs 1,886 crore for the said quarter from Rs 1,578.55 crore a year ago, the company said in a statement on Monday.

During the first quarter, the company's customer base crossed 48 lakh customers. Mahindra Finance has a network of 1,183 offices and total Assets Under Management (AUM) of Rs 47,576 crore as on June 30, 2017, as against Rs 41,662 crore at the end of first quarter last fiscal, it said.

"The company, with effect from June quarter 2016, had started considering estimated realisable value of underlying security (which conforms to RBI norms) for loan assets to determine 100 per cent provisioning for assets which were 24 months overdue which had resulted in lower provision of Rs 193 crore for the aforesaid quarter and Rs 83 crore for 2016-17 with a consequent impact on Profit Before Tax," it said.

In the quarter ended June 30, 2017, the company has made additional provision of Rs 83 crore against the above mentioned 100 per cent provision cases.

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