Mahindra Financial Services has reported a 21% rise in profits to Rs. 304 crores in the quarter ending September 30 this year, while the total income increased by 4% to Rs 2,650 crores. The good showing was driven by the strength of the rural market, which has remained relatively insulated from the Covid-19 pandemic. In addition, Agri-demand continued to be strong on the back of a good monsoon and crop harvest.

Following the disruption due to the Covid-19 pandemic and subsequent lockdown, markets are now beginning to look up, and the sentiments are turning positive. Businesses are returning back to normal and customer footfalls at dealerships and branches have substantially improved. The demand is expected to further pick-up in the upcoming festival season.

Q2, FY-2021 Standalone Results: The total income increased by 4% and stood at Rs. 2,650 crores as against Rs. 2,541 crores during the corresponding quarter last year. The Profit Before Tax (PBT) stood at Rs. 412 crores, a decline of 10%. The Profit After Tax (PAT) stood at Rs. 304 crores, a growth of 21%. The decline in PBT during Q2 of the current year is primarily attributable to the higher level of impairment provisions/losses of Rs. 433 crores during this quarter through management overlay to reflect the deterioration in the macroeconomic outlook arising out of COVID-19 pandemic related disruptions.

Q2, FY-2021 Consolidated Results- The Total Income increased by 5% to Rs. 3,071 crores. The PBT stood at Rs. 488 crores while the PAT stood at Rs. 353 crores. The decline in PBT during Q2 of the current year is primarily attributable to the higher level of impairment provisions/ losses of Rs. 282 crores during this quarter through management overlay to reflect the deterioration in the macroeconomic outlook arising out of COVID-19 pandemic related disruptions.