Mahindra and Mahindra Financial Services Ltd posted an eight per cent drop in consolidated net profit at Rs 219 crore in fourth quarter March 2021 (Q4FYF21). It had posted consolidated net profit of Rs 239 crore in Janaury-March 2020 (Q4FY20).
The net profit for FY21 declined by 28 per cent to Rs 780 crore from Rs 1,086 crore in FY20, the finance company said in a statement.
Its board of Directors has recommended a 40 per cent dividend of (Re 0.80 per share on equity share of Rs two each), subject to shareholders approval.
The total income in Q4FY21 was down three per cent at Rs 3,038 crore from Rs 3,140 crore in Q4FY20. The impairment on financial instruments rose to Rs 910.08 crore in Q4FY21 from Rs 821.9 crore in Q4FY20.
The company, a financer for automotive and tractors, saw loan assets contracting to Rs 64,608 crore in March 2021, from Rs 68,089 crore in March 2020. The disbursements were down 41 per cent to Rs 19,001 crore in FY21 from Rs Rs.32,381 crore in FY20.
Its gross non-performing assets (GNPAs) rose to 9.0 per cent in March 2021 from 8.4 per cent in March 2020.
The impact of Covid-19 on the global economy and how governments, businesses and consumers respond is uncertain. This uncertainty is reflected in the Company’s assessment of impairment loss allowance on its loans, it added.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.