Mahindra & Mahindra Financial Services Limited which recognized as Mahindra Finance is a subsidiary of Mahindra and Mahindra (51.20% stake). The company’s main business is financing purchase of new and pre-owned auto and utility vehicles, tractors, cars, commercial vehicles, construction equipments and SME Financing. The company posted a good set of numbers for Q4FY16. Its consolidated total income for the quarter rose 13% (YoY) at Rs.1905 crore. Net profit grew 12% at Rs.411 crore while the value of assets financed rose 8% to Rs.6811 crore.

The non-banking finance company’s provisions, at Rs 109 crore, were 27% lower than in the same quarter last year. Its Gross NPA as at 31^st March 2016 stood at 8% v/s 5.9% in previous FY15 while Net NPA also rose from 2.4% to 3.2%. 8.0% 5.9%. The Company has recognised NPAs based on 4 months’ norms for the year ended 31st March, 2016 as against the revised regulatory norms of recognising NPAs at 5 months applicable for the current financial year resulting in an additional provision of Rs. 55 crore (including income de-recognition). Coverage ratio improved from 61% to 61.7%. CAR at end of FY16 came down from 18.3% to 17.3%. Total assets under management was at Rs. 40,933 crore.

The company ended FY16 with a lower consolidated net profit at Rs.7874 crore v/s Rs. 9,249 crore in Fy15, down 15%. Its Provisions and write Offs for the year rose to Rs. 10,982 crore from Rs.8,491crore. At end of FY16, the company had 1167 offices across India.