Mahindra Finance posts Rs 992 crore profit in Q3

Mahindra Finance has posted at profit of Rs 992 crore in Q3FY200 as compared to a loss of Rs 223 crore in Q3FY2021. Total income in Q3FY2022 has however come in flat at Rs 2,986 crore (Q3FY2021 total income: Rs. 2,993 crore).

The increase in equity stake in Ideal Finance [now known as Mahindra Ideal Finance (MIFL)] to 58.2 percent from 38.2 percent has resulted in revaluation of the company’s existing equity stake in MIFL, which led to a one-time revaluation gain of Rs 21 crore, which is shown as exceptional item in the 9M FY2022 consolidated financials.

For 9-month FY2022, the total Income declined by 7 percent at Rs 8,503 crore as against Rs 9,132 crore during 9MFY2021. The 9-month profit too declined 7 percent at Rs 522 crore compared to Rs 561 crore PAT in 9MFY2021.

According to the company statement, Q3 witnessed some normalcy returning. Mobility improved and there was better visibility on cash flows - both farm & infra and demand for vehicles. The total disbursement in Q3 stood at Rs 8,032 crore, up 28 percent year-on-year (and a 24% growth sequentially). The company added that with a mindset change among consumers and them preferring to be asset-light, the leasing and subscription business, Quiklyz, is also gaining traction.