M&M Financial Q1 profit seen up 63%, asset quality may be weak

Mahindra & Mahindra Financial Services' first quarter (April-June) profit is expected to increase 63.3 percent to Rs 145.4 crore and net interest income 13.1 percent to Rs 810.2 crore compared with same period last fiscal, according to average of estimates of analysts polled by CNBC-TV18.

Net interest income is the difference between interest earned and interest expended.

Key things to watch out for would be asset quality (which is expected to be weak), asset under management (AUM) growth and credit cost.

Analysts say if gross non-performing assets come below 10 percent, AUM growth above 10 percent and credit cost below 200 basis points, then that may be positive.