Mahindra Finance Q4 results: Net profit declines 10%, total income rises 21% YoY

Mahindra & Mahindra Financial Services (Mahindra Finance) on Saturday reported a 10% year-on-year (YoY) fall in its standalone net profit for the fourth quarter at ₹619 crore.

Total income for the quarter rose 21% YoY to ₹3,706 crore while net interest income (NII), the difference between interest earned and interest expended, rose 14% YoY to ₹1,971 crore.

Disbursements during the quarter grew 11% to ₹15,292 crore while gross loan book grew 24% to over ₹1.02 lakh crore.

For the fiscal year 2024, Mahindra Finance reported a 23% YoY growth in its total income at ₹13,562 crore. NII grew 10% to ₹7,135 crore while net profit for the year fell 11% to ₹1,760 crore. The board has proposed a final dividend of ₹6.30 per share.

The company had recently intimated the exchanges about fraud detection at one of the branches in the northeast. Mahindra Finance said the incident of fraud is limited to the Aizawl branch in Mizoram and was identified during a management review of the branch.

“The fraud relates to retail vehicle loans disbursed by the company. This is a case of extreme collusion between the company’s employees, with segregated duties, and external parties including vehicle dealers and bank employees. The fraud involved forgery of know your customer (KYC) and other asset-related documents leading to embezzlement of company funds,” it said.

Mahindra Finance said that based on the results of an assessment by the accounting firm hired by the company and the management, 2,887 loan accounts were identified as potentially fraudulent in nature. “These loans had an outstanding net recoverable balance of ₹135.9 crore as of March 31, 2024, which have been fully provided,” it said.

Shares of the company have fallen over 3% since the beginning of the year. The stock has fallen over 9% in the last one year.