Latest News | BIZ-STOCKS-MAHINDRA -FINANCE  Mahindra and Mahindra Fin Services Shares Jump over 10 Pc on Robust Earnings

New Delhi, Jul 20 (PTI) Shares of Mahindra and Mahindra Financial Services zoomed over 10 per cent on Monday after the company reported a more than two-fold jump in its standalone net profit for the June quarter.

The stock gained 10.44 per cent to close at Rs 229.60 on the BSE. During the day, it jumped 12.38 per cent to Rs 233.65.

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On the NSE, it rose by 10.43 per cent to settle at Rs 229.60.

Mahindra and Mahindra Financial Services has reported a more than two-fold jump in its standalone net profit to Rs 156 crore for the June quarter helped by cost rationalisation measures and lower funding cost.

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It had reported a profit after tax (PAT) of Rs 68 crore in the same quarter of last year.

On a consolidated basis, the lender reported a PAT of Rs 432 crore during the quarter as against Rs 108 crore last year.

"The increase in profit was due to cost rationalisation, reduction in overall cost of borrowing and also rise in NPAs was not high," Mahindra Finance vice-chairman and managing director Ramesh Iyer said.

He said April and May were no-activity months and the entire disbursements happened in June.

The company expects an increase in demand and financing for pre-owned vehicles, agri machinery (tractors) and small vehicles going ahead.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)