Mahindra Finance plunges 15% on weak Q1 results

NEW DELHI: Shares of Mahindra & Mahindra Financial Services (Mahindra Finance) plunged 15 per cent to hit their 52-week low of Rs 289.15 in Wednesday's trade, a day after it posted poor results for the June quarter.

Rural and semi-urban financiers Mahindra Finance saw its profits decline by 75 per cent to Rs 68 crores in the June quarter results as against Rs 269 crores during the corresponding period last year due to increase in provisions for stressed loans and elevated cost of financing owing to tight liquidity conditions for nonbanks.

Gross NPA ratio came at 5.7 per cent for the June quarter up by about 90 basis points from 4.8 per cent which was reported for the March quarter results. GNPA for June quarter last year was 6.3 per cent. One basis point is equivalent to 0.01 percentage points.

Provisions worth Rs 6,196 were made in the quarter to stressed loan pools, a 110 per cent rise from Rs 2,938 crore provisions taken by the NBFC in the corresponding quarter last year.

Shares of Mahindra Finance traded 9.50 per cent down at Rs 307.85 on BSE around 9:35 am.