M&M Financial reported its Q4FY21 earnings on Friday. Ramesh Iyer, vice-chairman and managing director, Mahindra and Mahindra Financial Services, in an interview with CNBC-TV18 on Monday, discussed the numbers.
He said one should look at the third and fourth quarter as the quarters to watch for, for all actions, leading to a lot of positivities.
“We expect that in the second half of this year as things even out and the vehicles start becoming available because we still see demand in sight, the rural sentiments were pretty good pre-March and then currently we are in a different situation but nevertheless we do feel that with the agri-cash flow improving, rural should do well post-festival,” he said.
In terms of Q4FY21 numbers, he said, “We continue to see non-availability of the vehicle as one of the issues, which has caused a little dip in our numbers. Heavy commercial vehicles also did not do well at all in this round and the HCV sales are pretty down even now. These two are the impacting factors of our growth.”
On the impact of the second wave of COVID-19, he stated, “We have made sufficient provisions and we have got a coverage going up to 58-59 percent. I don’t think we will need to take higher provision on the same book.”
For full interview, watch the video…
(Edited by : Bivekananda Biswas)