M&M Financial Services Q1 net profit up by 52 per cent

The non-banking finance company, Mahindra & Mahindra Financial Services, has reported a 52.40 per cent jump in consolidated net profit at Rs43.13 crore in its Q1 results for FY09-10. The company is the largest retail financier for Mahindra range of vehicles and tractors.

According to the company press release, the firm registered on a standalone basis a growth of 10 per cent in its total income at Rs329.31 crore, as compared to Rs299.43 crore during the same period last year.

Profit after tax (PAT) stood at Rs40 crore, an increase of 49.48 per cent from Rs26.76 crore for the same period last year.

In the quarter, the company increased its focus on NPA reduction and funds from various sources were raised at very competitive rates bringing down the overall cost of borrowings thereby resulting in increased PAT during the quarter, the press release said.

The company's disbursement registered a growth of 8 per cent at Rs1,617 crore, as compared to Rs1,496 crore during the same period last year.

On a consolidated basis the total income increased by 10.61 per cent to Rs336 crore from Rs303.78 crore and the profit after tax increased by 52.48 per cent to Rs43.16 crore from Rs28.30 crore in the corresponding period last year.