Profit growth due to lower NPLs, better recoveries: M&M Fin

Normally, second half of the year is an exciting one from rural perspective because of festival, wedding season, harvest happening in October and January and so historically the fourth quarter is the best quarter for his company, said Iyer.

Below is the verbatim transcript On monsoon impactFrom mid-March, we have been facing this situation of weak sentiments because of untimely rains in some of these markets. But for us, if you look at our overall customer segment and not look at product by product, overall customer segment is earn and pay segment. We are not working with fixed salary segment. And their cash flows get impacted by clearly economic activity, by farm outputs and more importantly the contracting segment where not just the cash flow size would have reduced but would have also would have got stretched because of the delayed payment that they recover.On asset growthIf you look at our asset growth it is upward at 11 percent. At this particular quarter disbursement growth has been at 8 percent and it has not contributed by any one product, one geography. We are a multi-product company financing vehicles and tractors sold in semi-urban, rural geography including pre-owned vehicle which is our focus area of growth. So, I would think that it is an overall growth from almost all the geography as well as all products. That is what has helped us maintain growth, because otherwise if you look at the other equipment manufacturer (OEM) number, there has not been a very big growth story from any one of them out there.