Moneycontrol Bureau
Mahindra & Mahindra Financial Services started off the financial year 2016-17 on a disappointing note with the profit falling 2 percent to Rs 87 crore in April-June quarter compared with Rs 89 crore in year-ago period, impacted by lower net interest income.
Net interest income, the difference between interest earned and interest expended, plunged 32.5 percent year-on-year to Rs 675.4 crore in the quarter ended June 2016.
Earnings missed analysts' expectations as profit was estimated at Rs 145.4 crore and net interest income at Rs 810.2 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
Loans provisions and write off doubled on sequential basis to Rs 224.5 crore from Rs 108.9 crore but on yearly basis fell 30.5 percent from Rs 322.8 crore.
Asset quality worsened further with the gross non-performing assets (NPA) rising 270 basis points to 10.7 percent and net NPA climbing 220 basis points to 5.4 percent compared to preceding period.
At 15:26 hours IST, the scrip of Mahindra & Mahindra Financial Services was quoting at Rs 305.10, down Rs 11.95, or 3.77 percent on the Bombay Stock Exchange.
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