Mumbai, Apr 22 (UNI) Mahindra and Mahindra Financial Services Limited today announced a 31 per cent increase in its net profit at Rs 75.39 crore in Q4 of fiscal 2008 from Rs 57.70 crore in the corresponding period last fiscal.
MMFSL, part of the USD 6 billion Mahindra Group and a leading player in providing financial services in the rural and semi-urban markets, posted a net profit of Rs 177.02 crore for the year ended March 31, 2008 compared to Rs 132.88 crore in 2006-07 registering a growth of 33 per cent over previous year. The board of directors had recommended a final dividend of 45 per cent compared to 40 per cent in last year.
The Company has registered a rise in sales turnover at Rs 358 crore during Q4 of FY 2007 - 08 from Rs 263 crore in the same quarter of the previous year. However, the Company recorded the turnover of Rs 1,216 crore during the year ended on March 31, 2008 compared to Rs 836 crore in the corresponding period last year.
While speaking to the reporters here today, Mahindra Finance Managing Director Ramesh Iyer said, ''During the year Mahindra Finance has increased its network to 33 offices against the present of 400 offices in semi and rural areas. In addition to concentrating on new vehicle financing, we have also grown our pre-owned vehicle financing volumes during the year.'' He said ''We have commenced rural housing business through our 100 per cent subsidiary Mahindra Rural Housing and expect this business to grow in the years to come. The insurance subsidiary has registered a growth of 66 per cent in premium generation and 29 per cent in profits in spite of various regulatory changes that were introduced during this financial year.
Meanwhile, Mahindra Finance Chief Financial Officer V Ravi stated, despite the volatility in interest rate throughout the year, the Company was able to contain the cost of borrowing and reduce the impact on the overall borrowing cost for the Company. During the last quarter, the Company made a Private Placement with leading investment companies TPG Axon and Standard Chartered Equity Private Limited for Rs 414 crores at Rs 380 per share which has increased the capital adequacy of the Company considerably providing the ability to leverage to meet the growth phase of the Company.
MMFSL significantly increased its exposure to vehicle financing during 2007-08. In November, 2007 it formed an alliance with Ashok Leyland to provide finance for the commercial vehicles. Mahindra Finance's growth will also be enhanced by the various organic or inorganic initiatives of the parent company, Mahindra&Mahindra, he added.
UNI AR GR VKG1930