The board has recommended a dividend of 200 percent for FY18.
Mahindra & Mahindra Financial Services saw an 81.3 percent jump in standalone net profit to Rs 424.5 crore for the March quarter in line with estimates, on the back of an increase in revenue and reduction in expenses. The quarterly net profit was Rs 234 crore in the year ago period.
Total income for the non-banking financial company grew 13 percent to Rs 2,074 crore for Q4 FY18, as against Rs 1,843 crore in the year-ago period.
The board has recommended a dividend of 200 percent for FY18.
A Reuters poll had estimated net income to rise to Rs 426 crore while the revenue was estimated at Rs 1261 crore.
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The loan provisions and write-off dropped to Rs 157.22 crore for the fourth quarter compared to Rs 361.41 crore in the year ago period, showing an almost 57 percent drop.
Mahindra Finance explained in its results statement that they have revised the asset classification norms from September 30,2017 for non-performing assets (NPAs).
Pursuant to this, loans outstanding for a period of three months and above are classified as NPAs compared to four months and above followed until end of Q3FY17. This resulted in an increase in total provisions by Rs 93.74 crore for year ended March 31, 2018.
This was in compliance of the Reserve Bank of India (RBI) norms which had, in 2015, directed NBFCs to re-classify loans pending for five months or more as NPAs for FY16, four months or above for FY17 and three months or more for FY18.
The assets under management (AUM) stood at Rs 55,101 crore at the end of FY18 — a growth of 18 percent over the previous fiscal.
Among its subsidiaries, Mahindra Insurance Brokers' net profit rose to Rs 21 crore, an almost 2.5 times jump over the same quarter previous year. For the fourth quarter, the insurance broking firm saw a 42 percent growth in its income to Rs 88 crore.
Mahindra Rural Housing Finance saw an 84 percent growth in its profit after tax to Rs 71.4 crore for Q4 over a year ago. Mahindra Asset Management, however, incurred a loss of Rs.13.79 crore as compared to loss of Rs.8.28 crore over the same period previous year.