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Mahindra & Mahindra Financial Services Ltd.'s third-quarter profit declined, missing analysts' estimates. The company's standalone net profit fell 15.3% year-on-year to Rs 181.32 crore for the quarter ended December, according to a regulatory filing. Analysts polled by Bloomberg estimated a standalone net profit of Rs 454.5 crore.
“While FMCG companies have been experiencing a subdued demand environment, NBFCs have been growing quite consistently and MMFSL is not an exception. All NBFCs have reported very robust disbursement growth and therefore, the AUM growth as well. If the tide is turning and the rural incomes are showing a definite upturn, it continues to augur well for even the NBFC sector.”
So if you look at the infrastructure spends by the government and the overall macro indicators in the economy, despite the fact that monsoon so far has not played out exactly the way we wanted it to, I believe the demand momentum has continued
The RBI raised the repo rate by 250 basis points (bps) between May and February to 6.5%. In response, banks have raised the weighted average lending rate on fresh loans by 181 bps, before lowering it 23 bps in April, showed data from RBI
The company’s biggest drawback has been its rather volatile track record on profitability. Delinquencies have been lumpy and so have provisions. But all that may be about to change