Mumbai: Mahindra & Mahindra Financial Services Ltd (Mahindra Finance), part of the $ 4.5 billion Mahindra Group and a leading player in providing financial services in the rural and semi-urban markets, has posted a 19% rise in PBT to Rs. 58.01 Crore from Rs 48.75 Crore in the corresponding period last year. PAT rose 24% to Rs 37.73 Crore in Q2 from Rs 30.33 Crore during the same period last fiscal.

The second quarter income jumped 49% to Rs 293.08 Crore compared to Rs. 196.53 Crore. The overall performance was enhanced due to increase in the number of cases dealt in this period. Despite concerns over higher interest rates, demand in the rural markets remained strong.

Mr. Ramesh Iyer, Managing Director, Mahindra & Mahindra Financial Services Ltd. said, "MMFSL Q2 performance has been encouraging and has reinforced the company’s leadership position in the NBFC rural segment. Mahindra Finance has undertaken nationwide innovative initiatives for the benefit of its customers, which has bolstered its position as a strong pan-India rural and semi-urban player. It is heartening that despite a higher interest rate regime, customers have shown confidence in Mahindra Finance’s products, as validated by the rise in volumes including financing of PTL tractors and Logan cars.

Mr. V. Ravi, Chief Financial Officer, Mahindra & Mahindra Financial Services Ltd. said, "During the quarter, we were able to contain the increase in interest cost. We had rationalized the lending rates of certain products in select location. The overhead cost increase was due to strengthening of branch infrastructure and network, benefit of which would be fully realized in the subsequent periods.

MMFSL has increased its network during Q2 to 424 branches in a bid to reach out to more customers. The existing product portfolio is being enhanced, besides adding newer products as part of the company’s customer centric approach.

About Mahindra & Mahindra Financial Services Ltd

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of India's leading non-banking finance companies focused on providing finance for utility vehicles, tractors and cars in the rural and semi-urban sector. Mahindra Finance is a subsidiary of Mahindra & Mahindra, a leading tractor and utility vehicle manufacturer. The company has positioned itself between the organized banking sector and local moneylenders, offering customers competitive, flexible and speedy lending services and has customized packages for customers’ every need. Mahindra Finance has a network of over 400 branches covering more than 80% of the districts in India. It has entered into more than 600,000 customer contracts and has disbursements of around Rs. 21000crore since inception. Almost all the top mutual funds in the country have reposed their trust in the company and have invested in it. Mahindra Finance listed on National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. on March 17, 2006.