Increased cash flows & infra activities to help boost rural demand, says Ramesh Iyer of M&M Financial

Mahindra and Mahindra Financial Services reported 14.6 percent rise in its standalone net profit to Rs 365.3 crore in Q3FY20 as compared to Rs 318.7 crore in Q3FY19. The revenue during the quarter increased by 15.7 percent to Rs 2,580.6 crores as against Rs 2,340.4 crores YoY.

Detailing the numbers, Ramesh Iyer, Vice Chairman and Managing Director of M&M Financial Services said that festive demand aided growth in Q3. “This was a festival quarter, and with the changing emission norms, the BS-VI coming in end of next quarter or beginning of the first quarter, most of the OEMs and dealers were in the direction of reducing inventory and offering various programs out to the consumer. So, that definitely did push the demand up,” he said.

“We do believe, going forward with good farm cash flow expectations and infra expected to open up different states for different activity, the two together should drive demand. Our own belief is that we would see an increasing trend quarter-on-quarter and by next festival season, we could surely see aggressive demand in the rural market,” he added.