Mahindra Finance reports Q3 net loss at Rs 223 cr

Standalone income was down 2 percent at Rs 2,575 crore. On the asset front, the company’s gross stage levels (or bad loans) soared to 9.99 percent at December-end from 8.49 percent in a year ago. The net stage 3 was slightly lower at 6.57 percent compared to 6.67 percent.

As of December 31, 2020, the cumulative amount of management overlay provisions stood at Rs 1,064 crore to reflect the macroeconomic outlook. The company has initiated various cost rationalisation measures and expects a benefit from the same to continue in the future.

As of December 31, the company’s customer base has crossed 7.1 million, it said. The company’s total disbursement for the April-December period stood at Rs 13,031 crore.

The capital and debt position are strong and the ALM (asset-liability management) position is well balanced. ”With surplus liquidity over Rs 90 billion as at the end of the quarter i.e 15 percent of the overall borrowings, the company is in a very comfortable position to meet its future repayment and growth requirements,” Mahindra Finance said.

During the quarter, there were certain segments of customers who did not participate in asset acquisition and there was also non-availability of certain models leading to a drop in business. While the overall cash flows of the customer showed an improvement, the earnings have not yet returned to the pre-COVID situation, it said. The farm output has been very encouraging and the farm cash flow has started to come in from December. While the restructuring opportunity was offered to customers, considering the expected cash flow in the fourth quarter, the customers have not opted for the same, it added.

”The rural sentiments remain positive and we expect to benefit from the same during the fourth quarter,” it noted.